However, demands for user privacy and regulations slowing down investments into programmatic globally.
As per Zenith, programmatic will account for 69% of all dollars spent on digital advertising by 2020, increasing from 65% in 2019. The article states that investment into programmatic advertising has decreased globally due to regulations and growing demands for user privacy.
The global programmatic growth is expected to slow down to 22% this year (from 35% in 2018), eventually plummeting to 16% in 2021. Regulations like GDPR, CCPA and browser tracking changes are said to be driving this deceleration.
Programmatic’s penetration is restricted to 80-85% in mature markets, whereas it is “stalling or shrinking” in smaller markets. Jonathan Barnard, head of forecasting at Zenith notes that, “Programmatic trading is changing”, adding that spends on programmatic should rebound as brands spend more with entities that provide more value.
[2 minute read]