Marketing 2 min read

Digital Display Advertising in the U.S. Will Continue to Grow

mohamed Hassan

mohamed Hassan

A 2019 eMarketer report has predicted that programmatic display ad spends in the U.S would reach $57.30 billion by 2020. That’s a 19.5 percent growth compared to the previous year.

However, the forecast was in October 2019, three months before the first confirmed case of COVID-19 in the U.S. Now, the economy has fallen into its first slump since the 2007 Great Recession.

Accordingly, eMarketer has revised its predictions to account for the current state of the country.

The report reads:

“Now the pandemic’s effects are layered onto those changes. Of particular note: We’ve revised our estimated 2019 programmatic display spending upward, from $57.30 billion to $59.57 billion.”

Before delving into the prediction, let’s begin with a quick introduction.

What is Digital Display Advertising?

Digital display advertising refers to graphic advertising on websites, apps, or social media through banners or other formats. These could include text, images, flash, audio, or video.

Most digital display advertisings in the U.S. are programmatic. That means buying and selling of ad inventory requires an automated bidding system.

According to eMarketer, these transactions will account for 84.5 percent of the digital display ads market.

Digital Display Adverting to Grow Despite Recession

The report suggests that programmatic display advertising in the U.S. will continue to grow in 2020, despite the recession. However, the growth will be significantly stunted before it bounces back in 2021.

According to eMarketer, three factors will anchor the expected growth in programmatic advertising. These are:

  • Mobile spending
  • Video spending
  • Programmatic direct transactions

The forecast suggested that mobile and video spending will rise by $3.93 billion and $2.83 billion. Similarly, programmatic direct transactions will account for $4.07 billion in incremental spending.

Spending on nonvideo programmatic display ads will rise by roughly $900 million in 2020. However, the video ads are the primary driver of programmatic ad growth.

The report states:

“Spending on video ads transacted programmatically will increase by 11.6% to $27.37 billion, and growth will accelerate to 31.3% next year as the economic effects of the pandemic subside.”

Here’s the full report.

Read More: Coronavirus to Impact Advertising More Than the 2008 Recession

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Sumbo Bello

Sumbo Bello is a creative writer who enjoys creating data-driven content for news sites. In his spare time, he plays basketball and listens to Coldplay.

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