The global programmatic display market is expected to register a global CAGR of 35.5% during 2017 – 2027, with North America, Western Europe, and APEJ accounting for significant market value shares by the end of the forecast period.
FMI delivers key insights on the global programmatic display market in its report titled “Programmatic Display Market: Global Industry Analysis 2012 – 2016 and Opportunity Assessment 2017 – 2027.” Growth in the market value of the global programmatic display market will remain attractive as the market is expected to grow continuously at a CAGR of 35.5% in terms of value during the forecast period 2017 – 2027.
On the basis of ad format, the mobile video segment is expected to register attractive growth during the forecast period in the global programmatic display market. On the basis of sales channel, the private marketplaces segment of the programmatic display market is expected to register attractive growth during the forecast period.
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Analysis of the Global Programmatic Display Market
The global annual revenue generated by the programmatic display market was valued at US$ 21,829.3 Mn by the end of 2017, which is expected to grow at a steady pace over the coming years. The developed economies of North America, Western Europe and APEJ are expected to collectively account for a majority share of the global programmatic display market. The North America programmatic display, Western Europe programmatic display, and APEJ programmatic display markets are likely to dominate the global programmatic display market over the forecast period. Among these, the APEJ market is expected to grow with the highest CAGR during the forecast period.
Dynamics Impacting the Global Programmatic Display Market
Since past few years, the adoption of programmatic displays has been increasing considerably, especially with reference to the mobile video segment. Almost every industry sector in developed countries is moving towards digitalisation through the adoption of digital technologies and devices for innovation in business processes & revenue-producing opportunities for programmatic displays. Moreover, the adoption of digital devices by clients and their customers to share data with one another is creating avenues for the sales of programmatic displays, which is boosting the programmatic display market.
The private marketplaces segment in the programmatic display market is expected to grow significantly during the forecast period. Opportunities in the programmatic display market are growing continuously, which can be majorly attributed to an increase in the adoption of Video on Demand (VoD), which includes Netflix, Amazon Prime Video and TV catch up services. These platforms are boosting opportunities for brands to digitally advertise videos, and this is positively impacting the programmatic display market.
Global Programmatic Display Market: Key Insights
On the basis of FMI analysis, the mobile video sub-segment of the ad format segment is expected to dominate the programmatic display market followed by the online video segment during the forecast years. On the basis of sales channel, the Real-Time Bidding (RTB) segment is expected to be a dominating segment in the global programmatic display market.
The North America programmatic display market is expected to dominate the global programmatic display market due to high growth in the overall revenues generated from the mobile video segment. Almost every industry sector in the North America region is moving towards digitalisation through the adoption of digital technologies and devices to share data with one another, which is creating a platform for programmatic displays. This is also propelling the programmatic display market in North America. The APEJ programmatic display market is expected to be a target market for market participants owing to the high growth opportunities in countries such as India and China. Increase in the Internet usage and the surging adoption of smartphones in the region is boosting connectivity across the world and contributing to economic as well as social progress, and these factors are driving the programmatic display market in APEJ. The programmatic display market in Western Europe has high potential. Social media advertising is a significant driver of programmatic displays in the region. Social media marketers are running more effective campaigns through automated buying and by reaching a precise audience with highly relevant messages, which is positively impacting the European programmatic display market during the forecast period.
Earlier, programmatic displays were only available via open marketplaces and real-time bidding for display ads. However, nowadays, programmatic displays also include direct publisher relationships and partnerships with platforms such as Facebook. According to FMI analysis, the integration of advanced technologies, along with the enhancement of functionality will help boost the revenue generated by the programmatic display market. Examples of some of the key participants in the global programmatic display market report are AppNexus Inc., AOL Inc., Yahoo! Inc., DataXu Inc., Adroll.com, Google Inc. (Doubleclick), Adobe Systems Incorporated, Rubicon Project Inc., Rocket Fuel Inc. and MediaMath Inc.
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Vendors are continuously innovating their programmatic display solutions to penetrate the technology-influenced market. Several vendors in the programmatic display market are focussing on partnerships on a global level to expand their businesses and increase their customer base. Some of these deals are listed below:
- Among the key players in the programmatic display market, Appnexus Inc. is focused on entering into acquisitions and partnerships to increase its market share. AppNexus Inc. offers the industry’s leading technology system for managing supply as well as demand partners. With reference to programmatic display, all the major ad exchanges, ad networks, DSPs, SSPs, publishers and advertisers are plugged into the AppNexus platform.
- In September 2016, Alma Media, a media and service company based in Finland, partnered with AppNexus to use the AppNexus Publisher Suite. This technology partnership with reference to programmatic display aided AppNexus to enhance its presence in the Nordics and Northern Europe markets and increase its customer base.
- AOL is focussing on increasing its investments in programmatic display as most of the advertisements are currently purchased programmatically in digital advertising. This is boosting the company’s revenue. In July 2016, AOL invested US$ 500 Mn in programmatic display TV advertising to build and innovate TV advertising as well as to aggregate and sell ad blocks across multiple networks that target specific audiences.
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