2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL &...

42
2020 GLOBAL DIGITAL AD TRENDS

Transcript of 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL &...

Page 1: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

2020GLOBAL DIGITALAD TRENDS

Page 2: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

Innovation is a constant force driving the evolution of the digital media ecosystem. Digital channels are expected to provide nearly all incremental spend flowing into global ad budgets through 2020, and programmatic will account for most of that growth. Publishers and media buyers must understand the nuances and key trends impacting the market in order to capitalize on the vast opportunities available.

In such a fast-evolving industry, reliable data is the foundation of good business decisions. This is a compilation of the most significant market developments in the programmatic ecosystem to inform your 2020 strategies. This guide includes global advertising forecasts, growth trends for emerging and evolving formats, trends in header bidding, private marketplaces, and more!

T A B L E O F C O N T E N T

US DIGITAL & PROGRAMMATIC MARKET 2

GLOBAL DIGITAL & PROGRAMMATIC MARKET 11

MOBILE ADVERTISING 19

VIDEO ADVERTISING 25

PRIVATE MARKETPLACES 34

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 1

Page 3: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

US DIGITAL & PROGRAMMATIC MARKET

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 22 0 1 9 G L O B A L D I G I TA L A D T R E N D S / 2

Page 4: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED AD REVENUE GROWTH IN THE UNITED STATES, BY MEDIA TYPE

Digital media will continue to drive a significant amount of advertising growth in 2020. The Summer Olympics and US Presidential elections in 2020 will bring incremental advertising revenue and drive local television spending.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 32 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 3© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D

-3.3

% -0.4

%

-17.

9%

11.8

%

-14.

8%

-16.

3%

-2.6

%

-4.4

%

3.6%

3.0%

NAT

ION

AL T

V(I

NC.

CE)

LOCA

L TV

(IN

C. C

E)

PRIN

T

RADI

O

OUT

OF H

OME

20202019

Source: Magna Global

13.2

%

9.5%

DIGI

TAL

Page 5: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED US DIGITAL AD SPEND

For the first time, US digital ad spending surpassed traditional media spending in 2019. Digital is projected to reach over two-thirds of total media spending by 2023.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 4

Source: eMarketer

% of total media ad spendDigital ad spend

$201.8

$187.8

$172.3

$151.3

$129.3

54.2%58.5% 62.2% 64.7% 66.7%

2019 2020 2021 2022 2023

Bill

ions $200

$150

$100

$50

$0

Page 6: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED US DIGITAL DISPLAY AD SPEND

The share of digital spend allocated to display advertising is expected to remain flat over the next four years. However, as digital advertising as a whole rises, display ad spend is projected to grow 59% between 2019 and 2023.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 52 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 5© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D

Source: eMarketer

% of total digital ad spendDigital display ad spend

$108.9$101.1

$92.2

$80.6

$68.6

53.1% 53.2% 53.5% 53.8% 54.0%

2019 2020 2021 2022 2023

Bill

ions

$100

$80

$60

$40

$0

$120

$20

Page 7: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED SHARE OF US DIGITAL DISPLAY AD SPEND, BY PURCHASE METHOD

The benefits of automation drives nearly all digital display ads through programmatic advertising. Only a sliver of ad buys are sold directly and manually.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 6

N O N-P R O G R A M M A T I C 202015.0%

P R O G R A M M A T I C 202085.0%

201916.5%

201983.5%

Source: eMarketer

Page 8: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED SHARE OF US REAL-TIME BIDDING (RTB) AD SPENDING

Thanks to continued brand safety and ad quality issues, buyers and sellers are directing more dollars to private marketplaces (PMP) in the US. Private marketplaces will overtake open exchange ad spending for the first time in 2020.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 7

Source: eMarketer

O P E NE X C H A N G E 202049%

P M P 202051%

2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 7© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D

Page 9: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED SHARE OF US PROGRAMMATIC DIGITAL DISPLAY AD SPEND, BY DEVICE

Mobile ad spending will represent the majority of programmatic transactions in the US come 2020. While the share of desktop ad spending declines, connected TV is expected to grow and capture almost 7% of the market.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 8

Source: eMarketer

D E S K T O P 9.5%

M O B I L E 83.3%

C O N N E C T E D T V7.2%

Page 10: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

US PROGRAMMATIC VIDEO AD SPENDING, BY DEVICE

Half of all programmatic ad dollars in the US will come from video by 2021, with mobile accounting for three-quarters of the spending.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 9© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 9

Source: eMarketer

2018 2019 2020 20212017

70.9%

73.2%

74.4%

67.4%

75.1%

25.3% 19.6% 14.4% 11.2% 9.0%

$16.2

$20.7

$27.2

$33.4

$39.4

15.9%14.3%12.5%9.5%7.3%

Bill

ions

$20

$10

$30

$40

$0Connected TV

Desktop/Laptop

Mobile

Video ad spend

Page 11: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

BUYERS’ SUPPLY PATH OPTIMIZATION PLANS IN 2020

Transparency and efficiency have now become key considerations for marketers. Most US buyers are either actively implementing supply path optimization (SPO) or planning to start within the next year.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 1 0

Source: Digiday/PubMatic

N O P L A N S T O I M P L E M E N T*27%

A C T I V E LYI M P L E M E N T I N G45%

N O T A C T I V E LY I M P L E M E N T I N G B U T P L A N T O*28%

*within the next 12 months

Page 12: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

GLOBAL DIGITAL & PROGRAMMATIC MARKET

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 1 1

Page 13: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

Digital display ads, including video, is the fastest growing ad format. It will account for over a quarter of total media ad spending in 2021, up from a fifth in 2018. Digital as a whole will contribute to half of total media ad spending worldwide.

PROJECTED TOTAL MEDIA AD SPENDING SHARE WORLDWIDE, BY MEDIA, 2018 AND 2021

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 1 2

Internet Display

Internet Classified

Outdoor

Source: Zenith

Radio

Newspaper

Television

Internet Paid Search

Cinema

Magazines

2018 2021

31.9%28.5%

17.3%18.8%

8.1%6.2%

26.7%21.3%

6.4%6.5%

5.5%5.9%

3.1%4.4%

3.9%3.7%

0.7%0.9%

Page 14: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED WORLDWIDE DIGITAL AD SPEND

Global digital ad spend growth rates remain strong. By 2020, digital advertising will represent that majority of total media ad spend worldwide

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 1 32 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 1 3© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D

Source: eMarketer

% of total media ad spendDigital ad spending (billions)

$517.5

$435.8

$385.0

$333.3

50.1%53.6%

56.6%58.8%

60.5%

2018 2019 2020 2021 2022

Bill

ions

$500

$400

$200

$100

$0

$300

$600

$479.2

Page 15: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

TOP 5 DIGITAL AD SPEND MARKETS WORLDWIDE

Digital ad spending in China and the US are expected to grow faster than the global average of 16% between 2019 and 2020—expanding their lead as the largest ad markets in the world

$ billions and % YOY change

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 1 4

+9%YOY C H A N G E

Source: eMarketer

$151.3

$129.3

US

Bill

ions

$120

$80

$60

$0

$100

2019 2020

$94.6

$79.8

CHINA

$21.6$19.6

UK

$14.2$13.4

JAPAN

$9.4$8.6

GERMANY

$40

$20

+17%YOY C H A N G E

+19%YOY C H A N G E

+10%YOY C H A N G E +6%

YOY C H A N G E

$140

Page 16: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

MAJOR DIGITAL AD SPEND MARKETS WORLDWIDE

India is the fastest-growing digital advertising market in the world, followed by Russia. Both are home to large populations of increasingly digital and mobile users.

© 2 0 1 8 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 1 9 G L O B A L D I G I TA L A D T R E N D S / 1 5© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 1 5

$9

$ billions and % YOY change

Bill

ions

$8

$4

$0

$7

$2

$1

$6

$5

$3

+12.

5%

AUST

RALI

A+7

.5%

+11.

7%

+13.

0%

FRAN

CE

+7.5

%

RUSS

IA+2

2.5%

ITAL

Y+1

1.5%

BRAZ

IL

+11.

6%NE

THER

LAND

S

+9.8

%

SWED

EN

+13.

6%

SPAI

N

+24.

0%

+10.

4%

SWIT

ZERL

AND

+12.

0%M

EXIC

O

+8.5

%

DENM

ARK

+8.2

%

INDI

A

NORW

AY

2019 2020

CANA

DA

SOUT

H KO

REA

Source: eMarketer

Page 17: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED PROGRAMMATIC AD SPEND WORLDWIDE

Programmatic transactions will represent more than two-thirds of digital display ad spend around the globe in 2020.

$ billions and % of digital display ad spend

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 1 6

Source: Zenith

% of digital display ad spendProgrammatic ad spend

$42.9

$19.9

$8.6$3.7

37%

10%

20%

44%

2012 2013 2014 2015 2016

Bill

ions $100

$80

$40

$20

$0

$60

51%

$56.5

2017

57%

$70.2

2018

62%

2019

65%

$98.2

2020

68%

$83.8

$30.6

Page 18: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

TOP 5 PROGRAMMATIC* DIGITAL AD SPEND MARKETS WORLDWIDE

Double-digit YOY growth rates remain the norm among the largest programmatic advertising markets in the world. China (+19%), Japan (+18%) stand out, however, highlighting revenue growth opportunities for APAC publishers whom are prepared to offer ad inventory through automation next year.

$ billions and % YOY change

© 2 0 1 8 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 1 9 G L O B A L D I G I TA L A D T R E N D S / 1 7© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 1 7

$22.3

$19.5

US

Bill

ions

$20

$16

$12

$0

2019 2020

$8.3$6.9

CHINA

$3.8$3.3

UK

$3.4$2.8

JAPAN$1.7$1.4

GERMANY

$8

$4

+14%YOY C H A N G E

+19%YOY C H A N G E

+15%YOY C H A N G E

+18%YOY C H A N G E +17%

YOY C H A N G E

Source: Magna Global; PubMatic calculations*excludes search and social media

$25

Page 19: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

MAJOR PROGRAMMATIC* DIGITAL AD SPEND MARKETS WORLDWIDE

Indonesia, India and Brazil will be the fastest-growing programmatic digital ad markets in 2020. Brazil will become the seventh largest programmatic market to reach a billion-dollar valuation next year.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 1 8

$ millions and % YOY change

$1,400

$800

$0

$400

$200

$1,200

$1,000

$600

+20%

AUST

RALI

A

+38%

BRAZ

IL

+18%

FRAN

CE

+9%

ITAL

Y

+11%

NETH

ERLA

NDS

+21%

SPAI

N

+8%

CANA

DA

+48%

INDI

A

+54%

INDO

NESI

A

+18%

MEX

ICO

+12%

SWED

EN

+29%

+36%

HONG

KON

G SA

R

+29%

ARGE

NTIN

A

+9%

KORE

A

NORW

AY

2019 2020Source: Magna Global; PubMatic calculations*excludes search and social media

Mill

ions $1,600

Page 20: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

MOBILE ADVERTISING

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 1 9

Page 21: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED MOBILE AD SPEND WORLDWIDE

Mobile advertising surpassed $200 billion worldwide in 2019. It is expected reach $400 billion by 2023, at which point mobile is projected to represent 80% of global digital ad spend.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 2 0

$430

Source: eMarketer

% of digital ad spendMobile ad spend

$401.8

$368.0

$330.4

$286.5

$241.0

2019 2020 2021 2022 2023

Bill

ions

$380

$280

$230

$180

$330

73.1%

75.9%

77.9%

79.2%80.2%

Page 22: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

TOP 5 MOBILE AD SPEND MARKETS WORLDWIDE

The top 5 markets account for 85% of the worldwide mobile ad spending. The US will expand most in absolute terms, adding more than half of the incremental spending between 2019 and 2020. China is expected to grow the fastest among the five largest mobile advertising markets.

$ billions and % YOY change

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 2 12 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 2 1© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D

$120.4

$99.2

US

Bill

ions $120

$60

$30

$0

$90

2019 2020

$72.2

$61.4

CHINA

$15.4$13.7

UK

$11.3$10.1

JAPAN

$6.2$5.4

GERMANY

+22%YOY C H A N G E

+19%YOY C H A N G E

+15%YOY C H A N G E

+12%YOY C H A N G E

+17%YOY C H A N G E

Source: eMarketer

Page 23: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

MAJOR MOBILE AD SPEND MARKETS WORLDWIDE

India and Thailand will see the fastest mobile advertising growth in 2020, with each market expected to rise over 40% year-over-year. Additionally, Denmark is projected to surpass $1 billion in mobile ad spend for the first time in 2020, coming in at 19th largest market in the world.

$ billions and % YOY change

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 2 2

$4

$0

$2

$1

$6

$5

$3

+14%

AUST

RALI

A

+23%

CANA

DA

+33%

BRAZ

IL

+24%

FRAN

CE

+14%

SOUT

H KO

REA

+34%

RUSS

IA

+30%

MEX

ICO

+19%

ITAL

Y

+15%

NETH

ERLA

NDS

+17%

SWED

EN

+18%

SPAI

N

+42%

INDI

A

+17%

NORW

AY

+14%

DENM

ARK

+19%

NEW

ZEA

LAND

+46%

THAI

LAND

2019 2020

Bill

ions

Source: eMarketer

Page 24: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

MOBILE INTERNET USERS WORLDWIDE

Mobile internet uptake has reached maturation among consumers, with over 85 percent of internet users accessing the it via handheld devices. This provides advertisers and publishers alike with a strong incentive to increase investment in mobile strategies.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 2 32 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 2 3© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D

Source: eMarketer

% of internet usersMobile internet users

$5.1$5.0$5.0$4.9$4.8

86%

90%

2019 2020 2021 2022

Bill

ions $6

$2

$0

$4

87%

89%

89%

2023

Page 25: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED SHARE OF US MOBILE AD SPEND, BY PLATFORM

In-app continues to drive incremental mobile ad spend in US. Spending will surpass $100 billion by 2020, with 85% of mobile ad dollars being purchased in-app. Similar estimates are not yet available worldwide, but growing app uptake among global consumers is likely to spur in-app ad spend around the globe next year. In Q3 2019 alone, nearly 31 billion apps were downloaded worldwide, up 10% year-over-year.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 2 4

Source: eMarketer; AppAnnie

M O B I L E W E B202015.4%

I N -A P P202084.6%

201917.5%

201982.5%

Page 26: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

VIDEO ADVERTISING

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 2 5

Page 27: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED DIGITAL VIDEO AD SPEND WORLDWIDE

Video will remain a key driver of advertising expenditures on display, projected to account for 31% of overall display ad spending next year.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 2 6

Source: Zenith; PubMatic calculations

% of total displayVideo display ad spend

$37.2

$30.6

$24.0

$17.5

23.2%

26.0% 26.8% 26.6%

2015 2016 2017 2018

Bill

ions $70

$20

$10

$0

$40

$30

$44.6

27.9%

2019

$52.1

29.0%

2020

$61.3

30.5%

2021

$60

$50

Page 28: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED DIGITAL VIDEO AD SPEND WORLDWIDE, BY PLATFORM

© 2 0 1 8 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D

Two-thirds of all global video ad spend is purchased on a mobile device. The continued shift towards mobile dominance will push this share to three-quarters of all video ad spend by 2024.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 2 7

Source: Cowen and Company; PubMatic calculations

46%

54%

$37.5

2018

40%

60%

$48.2

2019

35%

$59.6

2020

32%

65%

$71.5

2021

29%

71%

$83.9

2022

Mobile Desktop

Bill

ions $100

$40

$20

$0

$80

$60

2023 2024

26%

74%

$97.025%

75%

$110.6

68%

Page 29: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

DIGITAL VIDEO METRICS WORLDWIDEMobile has secured a stronghold in its share of global digital video ad spending and video viewership. While its continued growth is cannibalizing from desktop viewership, ad spending on desktop continues to grow.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 2 8

Source: eMarketer, Cowen and Company; PubMatic calculations

Video ad spend ($ billions)

2019 2020 2019 2020

DESKTOP MOBILE

$19.3 $20.8 $28.9 $38.8

% YOY change 11% 8% 44% 34%

% share of digital video ad spend, by device

40% 35% 60% 65%

Viewership (billions) 0.47 0.49 2.2 2.3

% YOY change -2% -3% 9% 8%

% penetration of digital video viewers 12.4% 11.6% 56.4% 58.6%

Page 30: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

Nearly three quarters of advertisers plan to increase their digital video ad budgets between 2019 and 2020. Only 1% of advertisers reported a decrease in their digital video ad spending.

© 2 0 1 8 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D

DIGITAL VIDEO AD SPEND INTENT IN THE NEXT 12 MONTHS AMONG US AD BUYERS% of Respondents, April 2019

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 2 9

Increase

40%BROADCAST/ CABLE TV

50%

59%

72% 27% 1%

38% 3%

44% 6%

41% 19%

OTT / CONNECTED TV

ADVANCED TV

DIGITAL VIDEO (DESKTOP

AND MOBILE)

Maintain Decrease

Source: Interactive Advertising Bureau

Page 31: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

8 in 10 advertisers consider a cross-platform video (CTV, OTT, and digital video) buying solution to be important to them in 2019.

% of Respondents, April 2019

IMPORTANCE OF A CROSS-PLATFORM VIDEO BUYING SOLUTION ACCORDING TO ADVERTISERS

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 3 0

Source: Interactive Advertising Bureau

S O M E W H A TI M P O R T A N T43%

V E R Y I M P O R T A N T40%

Page 32: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED DIGITAL VIDEO AD SPEND SHARE WORLDWIDE, BY PURCHASE METHOD

Two-thirds of digital video ad spend outside the walled gardens of social media was transacted programmatically in 2019. The programmatic share worldwide should rise above 75% in 2020.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 3 1

201932.1%

201967.1%

Source: PubMatic calculations based on Zenith and Magna Global estimates; *excludes search and social media

N O N-P R O G R A M M A T I C 202024.7%

P R O G R A M M A T I C 202075.3%

Page 33: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

TOP 5 PROGRAMMATIC* VIDEO AD SPEND MARKETS WORLDWIDE

Programmatic video ad placements are accelerating worldwide, thanks to the rapid growth in automation technology. Large markets like the US are still seeing robust double-digit growth rates.China will be the fastest-growing market in this group, rising 36% to surpassing $5 billion in 2020.

$ billions and % YOY change

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 3 2

Source: Magna Global; PubMatic calculations; *excludes social media

$14.0

$10.1

US

Billi

ons $15

$3

$0

2019 2020

$5.5$4.3

CHINA

$2.6$2.2

UK

$2.3$1.8

JAPAN

$1.1$0.9

AUSTRALIA

+34%YOY C H A N G E

+36%YOY C H A N G E

+28%YOY C H A N G E

+32%YOY C H A N G E +29%

YOY C H A N G E

$12

$9

$6

Page 34: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

MAJOR PROGRAMMATIC* VIDEO AD SPEND MARKETS WORLDWIDE

Indonesia will see programmatic video ad spend almost double in 2020, making it the fastest-growing market for the format in the world. Brazil will reach $1 billion in 2020, making it the 6th largest programmatic video ad market in the world.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 3 3

Source: Magna Global; PubMatic calculations; *excludes social media

$ millions and % YOY change

Mill

ions $1,200

$600

$0

$200

$800

$400

+46%

BRAZ

IL

+32%

GERM

ANY

+29%

FRAN

CE

+26%

ITAL

Y

+21%

CANA

DA

+85%

INDO

NESI

A

+33%

MEX

ICO

+37%

SPAI

N

+73%

INDI

A

+27%

NETH

ERLA

NDS

+40%

HONG

KON

G SA

R

+48%

ARGE

NTIN

A

+26%

SWED

EN

2019 2020

$1,000

Page 35: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

© 2 0 1 8 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 1 9 G L O B A L D I G I TA L A D T R E N D S / 3 4

PRIVATE MARKETPLACES

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 3 4

Page 36: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

GLOBAL PROGRAMMATIC AD SPEND, BY TRANSACTION METHOD

Global private marketplaces (PMPs) account for a third of all programmatic spending. As concerns for fraud and brand safety persist, ad budgets will increasingly swing into the safe shelters of restricted auctions.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 3 5

Source: eMarketer; *excludes programmatic direct

35%

65%

2019

38%

62%

2020

PMP Open Exchange

Bill

ions $60

$30

$10

$0

$50

$40

$20

$43.6

$51.0

$ billions and % of programmatic ad spend

Page 37: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED US PRIVATE MARKETPLACE DIGITAL DISPLAY AD SPEND

US private marketplaces (PMPs) will be the dominant transaction method in 2020. It will grow at double digit rates through 2021 as buyers and sellers of digital impressions seek more control over their transactions.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 3 6

Bill

ions $14

$8

$4

$0

$12

$10

$6

$2

Source: eMarketer

% of Real-Time Bidding ad spendPMP ad spend

$13.9

$10.6

$8.6

46%

49%

53%

2018 2019 2020 2021

$12.3

51%

Page 38: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED US PRIVATE MARKETPLACE AD SPENDING, BY DEVICE

Mobile will account for two-thirds of all US PMP ad spending by 2020. However, it will continue to trail the share the device achieves of overall programmatic ad spend.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 3 7

Source: eMarketer; *excludes programmatic direct

43%

57%

2018

40%

60%

2019

37%

63%

2020

31%

69%

2021

Desktop Mobile

Bill

ions $14

$8

$4

$0

$12

$10

$6

$2

$8.6

$10.6

$12.3

$13.9

Page 39: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED UK PRIVATE MARKETPLACE DIGITAL DISPLAY AD SPEND

UK private marketplaces (PMPs) will reach half of all real-time ad buys in 2020. It will grow at double digit rates through 2021 as buyers and sellers seek more control over their transactions.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 3 8

2018 2019 2020 2021$0

Bill

ions $2.0

$1.5

$0.5

$1.0

Source: eMarketer

% of Real-Time Bidding ad spendPMP ad spend

45%

48%

50%

54%

$1.3

$1.5

$1.7

$1.1

Page 40: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

PROJECTED UK PRIVATE MARKETPLACE AD SPENDING, BY DEVICE

Mobile will almost reach three-quarters of all PMP ad spending in 2020, ahead of the US market.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 3 9

Source: eMarketer; *excludes programmatic direct

37%

63%

2018

29%

71%

2019

27 %

73%

2020

27%

73%

2021

Desktop Mobile

$0

$1.3

$1.5

$1.7

Bill

ions $2.0

$1.5

$0.5

$1.0

$1.1

Page 41: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

MONETIZED MOBILE PRIVATE MARKETPLACE MARKET SHARE, BY REGIONGlobally, the expansion of mobile private marketplace volume has been fueled by the Americas region; its share accounts for half of all worldwide mobile PMP ad impressions.

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D 2 0 2 0 G L O B A L D I G I TA L A D T R E N D S / 4 0

Source: PubMatic

A P A CQ2 201921%

29%Q2 2018

A M E R I C A SQ2 201950%

15%Q2 2018

56%

E M E AQ2 201929%Q2 2018

Page 42: 2020 - pubmatic.com · TABLE OF CONTENT US DIGITAL & PROGRAMMATIC MARKET 2 GLOBAL DIGITAL & PROGRAMMATIC MARKET 11 ... Digital display ads, including video, is the fastest growing

© 2 0 1 9 P U B M AT I C , I N C . A L L R I G H T S R E S E R V E D

PUBMATIC CONTACT

Research Contact:

SUSAN WUDirector, Marketing Research

[email protected]

About PubMaticPubMatic is a digital advertising technology company for premium content creators. The PubMatic platform empowers independent app developers and publishers to control and maximize their digital advertising businesses. PubMatic’s publisher-centric approach enables advertisers to maximize ROI by reaching and engaging their target audiences in brand-safe, premium environments across ad formats anddevices. Since 2006, PubMatic has created

an efficient, global infrastructure and remains at the forefront of programmatic innovation. Headquartered in Redwood City, California, PubMatic operates 13 offices and six data centers worldwide.

PubMatic is a registered trademark of PubMatic, Inc. Other trademarks are the property of their respective owners.

Sales Contacts:

JEFFREY HIRSCHChief Commercial Officer

[email protected]

JAAN JANESVP, Customer Success, US

[email protected]

KYLE DOZEMANVP, Advertiser Solutions, US

[email protected]

EMMA NEWMANChief Revenue Officer, EMEA

[email protected]

Press Contact:

NORTH 6TH [email protected]

JASON BARNESChief Revenue Officer, APAC

[email protected]