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Programmatic Buying Hits $14.2B in 2015

Ad buying using programmatic technology will reach $14.2 billion globally this year, up 49%, according to a new forecast by media buyer Magna Global.

Programmatic—which automate parts of the ad buying and selling process to cut costs and increase effectiveness—will hit $36.8 billion in expenditures by 2019, says Magna, which includes both display and video ad inventory in its estimates.

Magna says the U.S. is leading the global adoption of programming with $7.7 billion in transactions expected in 2015.

Globally, programmatic’s share of banner display and video buying will grow to 31% this year (2015), compared to 24% last year, and will increase to 50% by 2019.

“The main drivers behind this growth include the opportunity to reduce transaction costs on both the buying and selling side, the opportunity to monetize a broader spectrum of digital media impressions, and the opportunity to leverage consumer data at scale to improve the efficiency of ad campaigns,” Magna said.

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.