... $20bn in annual ad revenues by 2016.
In digital marketing, programmatic marketing campaigns are automatically triggered by any specified type of event and deployed according to a set of rules applied by software and algorithms. Human skills, however, are still needed in programmatic campaigns as the campaigns and rules are planned beforehand and established by marketers.
Writing in the current issue of AdWeek, journalist Garrett Sloan warns that the ad industry will reach an inflection point this year, with programmatic ad spending growing by 137% in the US alone.
Mr Sloan predicts that in 2015 mobile programmatic will exceed desktop programmatic for the first time. These are his numbers:
1. Mobile programmatic ad spending in the US will hit $8.36bn next year, surpassing desktop for the first time, which will generate $6.62bn.
2.However, desktop spend will start to decline 3.9% in 2016 while mobile continues to grow, up 69.2%.
3. As for the type of programmatic, real time bidding (the exchange model) is king right now, accounting for $9.25bn of this year's $10bn buying pie.
4. Programmatic direct is growing much faster, however, up 850% this year to $800 million.
5. By 2016, programmatic direct will be an $8.57bn business compared to $11.84bn for real-time bidding.
6. Also, private marketplaces are growing in the real-time bidding ecosystem. Open exchanges still rule but the gap is closing. By 2016, open exchanges will handle 72% of programmatic buying, whereas today it handles 88%.
Lastly, by 2016, $3.84bn (or 40% of all digital video ads in the US) will be bought programmatically.
Read the original unabridged AdWeek.com article.