North America Programmatic Advertisement Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The North America Programmatic Advertisement Market is Segmented by Trading Platform (Real-Time Bidding, Private Marketplace Guaranteed, Automated Guaranteed, and Unreserved Fixed-rate), By Advertising Media (Digital Display, and Mobile Display), and By Enterprise Size (SMBs, large Enterprises).

Market Snapshot

North America Programmatic Advertisement Market Overview
Study Period: 2020-2027
Base Year: 2021
CAGR: 17.18 %
North America Programmatic Advertisement Market Major Companies

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Market Overview

The North American programmatic advertisement market is expected to grow at a CAGR of 17.18% during the period 2022-2027. Almost all company sectors in North America are working to become more digitalized by implementing digital technology and gadgets for novel business prospects and revenue-generating potential. This market expands as a result of clients and their customers using digital devices to share data with one another, which develops a platform for programmatic advertising.

  • Advertisers expect better performance and capabilities from the advertising technology they use. Content publishers and brand owners may utilize programmatic advertising to locate and apply the relevant messages to improve the value and effectiveness of a viewer's digital out-of-home advertising experience.
  • Only one in ten marketing specialists in North America fully comprehends programmatic advertising. To keep up with this industry's rapid growth, there is a steady rise in the demand for qualified talent.
  • As companies and agencies grapple with shifting needs and internal programmatic advertising technologies, there will be a skills scarcity for a very long time. For instance, programmed TV will soon require more specialist personnel and training as a result of this exciting technological advancement.
  • Further, with the expansion of social networks and other online stream services, videos have shown the steady growth over the past years. Canadian digital market has witnessed a more than six-fold increase in video ads since 2015. In 2022, video is predicted to overcome other traditional digital display spend for the first time,according to Harward Business Review . It is estimated that nearly 75% of digital ad video will be bought programmatically by the end of 2022.
  • Moreover, the use of automation and machine learning technology to purchase and show digital advertisements to segmented audiences in real-time is projected to climb drastically over the next three years, according to research conducted in 2021 from ALFI, a US based AI enterprise SaaS advertising platform.
  • Programmatic advertising provide various benefits, including real-time insights into the effectiveness of ad campaigns, enhanced targeting capabilities, increased transparency on ad inventory, improved budget usage, and effective ad fraud management, all of which help drive the market. On the other hand, a lack of understanding of programmatic advertising expenditure is expected to hamper industry growth during the projection period.
  • When the first wave of COVID-19 hit in March, according to an IAB analysis, brands cut spending by up to 30% overnight, with one in four suspending activity completely.  Many expected that the consequences will be far worse than the financial crisis of 2008.  As approached to the end of 2020, the majority of businesses have cut, or in some cases, ceased, their advertising expenditures.

Scope of the Report

The automated purchasing and selling of internet advertising is known as programmatic advertising. This automation streamlines the process and consolidates digital advertising activities into a single technological platform, making transactions more efficient and effective.

The North America Programmatic Advertisement Market is Segmented by Trading Platform (Real-Time Bidding, Private Marketplace Guaranteed, Automated Guaranteed, and Unreserved Fixed-rate), By Advertising Media (Digital Display, and Mobile Display), and By Enterprise Size (SMBs, large Enterprises).

By Trading Platform
Real Time Bidding (RTB)
Private Marketplace Guaranteed
Automated Guaranteed
Unreserved Fixed-rate
By Advertising Media
Digital Display
Mobile Display
By Enterprise size
SMB's
Large Enterprises

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Key Market Trends

Increased Mobile Penetration Drives the Market

  • Digital advertising is one of the primary ways that certain digital platforms monetise their data. Global digital platforms have kept strengthening their position as the market's main force including North America.
  • As per UNCTAD Digital Economy Report 2021, digital advertising spending is anticipated to increase to 60% of all media advertising spending by 2022, which is about twice as much as it was in 2013. By then, it's anticipated that the top five digital platforms would account for more than 70% of all digital advertising spending.
  • By 2026, it is predicted that 5G mobile data traffic would outpace that of 4G and older technologies. Due to their efficient networks, high-end user devices, and reasonably priced huge data packages, North America and Europe consume more data globally than other regions while having lower worldwide mobile subscription rates for 5G technology.
  • As per GSMA Mobile Economy Report, in North America, subscriber penetration in 2021 was reported to be 84% and is anticipated to 85% in 2025. While smartphone adoption in 2021 was reported as 82% and is anticipated to be 85% in 2025. Such kind of growth in mobile penetration leads most of the North American programmatic companies to adopt mobile advertisement to have greater reach.
North America Programmatic Advertisement Market Trends

Adoption of Technologies such as 5G, AI & ML are anticipated to Grow the Market

  • Machine learning AI algorithms are far more suited to the real-time environment of programmatic advertising than non-AI algorithms because they can learn from and modify their behavior in response to new patterns they detect. Large datasets may be processed swiftly by AI systems as well. Together, these elements affect how AI affects many facets of programmatic advertising.
  • Companies in the market such as MediaMath, Xandr, etc. show interest in AI for programmatic advertisement due to various benefits such as AI may assist marketers in adjusting their bid strategy in light of consumer data and helping them choose the appropriate bid price for the ad space they wish to acquire. This increases ROI and lowers ad spending.
  • By restricting the auction to the most qualified bidders, AI may also assist in identifying which advertisers are more likely to be successful with their offers for the available ad space. This is advantageous to the publishers.
  • As per GSMA Mobile Economy Reports, in North America, 2G, 3G network adoption rate shares as 3%, 6% respectively. While 4G holds major share accounted 78% and 5G as 13% in 2021. While it is anticipated that 5G contributes to 63% share followed by 4G with 31% and 2G, 3G with 2%, 4% shares in 2025.
North America Programmatic Advertisement Market Analysis

Competitive Landscape

The North America Programmatic Advertisement market is moderately fragmented and consists of several major players. The major players with a prominent share in the market such as PubMatic, MediaMath, Google Ad Manager, Adobe Advertisement Cloud, AdRoll, etc., are focusing on expanding their customer base across foreign countries through the adoption of various technologies.

  • October 2021 - US-based companies PubMatic and Semasio, a prominent player in Unified Targeting which seamlessly combines audience and contextual targeting on the buy- and the sell-side, announced an expanded partnership that enables media buyers to increase audience addressability at a user- and page-level.
  • November 2021 - NewYork based MediaMath has integrated its demand-side platform (DSP) with IBM Watson Advertising Weather Targeting to offer increased digital advertising precision and effectiveness while addressing new privacy standards.

Recent Development

  • June 2022 - Amobee, the advertising platform for optimized cross-screen performance, announced the relaunch of its market-leading campaign intelligence engine DataMine. The advanced analytics tool unlocks deeper campaign insights and new opportunities for incremental revenue through deep analysis of trustworthy media and audience data points across linear and digital platforms.
  • March 2022 - Hivestack, a prominent global independent programmatic digital out-of-home (DOOH) ad tech company, announced a strategic global partnership with MediaMath, the technology pioneer helping advertisers solve complex marketing problems. Through this partnership, MediaMath’s Demand Side Platform (DSP) will be integrated into Hivestack’s Supply Side Platform (SSP), following OpenRTB standards, which will allow for MediaMath and its advertisers to access Hivestack’s premium global DOOH inventory through RTB transactions via open exchange.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Stakeholder Analysis

    3. 4.3 Industry Attractiveness-Porter's Five Force Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Impact of COVID-19 on the Programmatic Advertising Market in the Country

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Digital Media driving Advertisement Growth

      2. 5.1.2 Increased Adoption of AI and ML drives Programmatic Advertisement

      3. 5.1.3 Increased penetration of Smart Phones

    2. 5.2 Market Challenges

      1. 5.2.1 Lack of Skill in Programmatic Advertisement

      2. 5.2.2 Risks involved in RTB such as Limited Understanding of Ecosystem Processing Personal Data

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Trading Platform

      1. 6.1.1 Real Time Bidding (RTB)

      2. 6.1.2 Private Marketplace Guaranteed

      3. 6.1.3 Automated Guaranteed

      4. 6.1.4 Unreserved Fixed-rate

    2. 6.2 By Advertising Media

      1. 6.2.1 Digital Display

      2. 6.2.2 Mobile Display

    3. 6.3 By Enterprise size

      1. 6.3.1 SMB's

      2. 6.3.2 Large Enterprises

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Key Vendor profiles

      1. 7.1.1 PubMatic, Inc.

      2. 7.1.2 MediaMath

      3. 7.1.3 Google Ad Manager

      4. 7.1.4 Adobe Advertising Cloud

      5. 7.1.5 AdRoll

      6. 7.1.6 Amobee, Inc.

      7. 7.1.7 Xandr

      8. 7.1.8 The Trade Desk

      9. 7.1.9 Magnite, Inc.

      10. 7.1.10 Digital Remedy

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OUTLOOK OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The North America Programmatic Advertisement Market market is studied from 2020 - 2027.

The North America Programmatic Advertisement Market is growing at a CAGR of 17.18% over the next 5 years.

PubMatic, Inc., MediaMath, Google Ad Manager, Adobe Advertising Cloud, NextRoll, Inc. are the major companies operating in North America Programmatic Advertisement Market.

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