Programmatic drives mobile's recent surge
A recent report by IAB found that programmatic represented 52% of all display ad spend last year, or $10.1bn. Although display banner ads contributed to 80% of that spend, the IAB reports that mobile and video formats are set to rise. Projections by eMarketer from 2014 show that programmatic spend in mobile will surpass desktop spend this year at 56.2%. Programmatic is the key behind mobile's recent surge. Mobile Marketing Daily said, “display advertising will account for the lion’s share of ad spend for the foreseeable future”.     
by Tyler Loechner , Staff Writer @mp_tyler, September 2, 2015

eMarketer on Tuesday released new projections for mobile advertising, noting that mobile will account for 52.4% of all digital spend this year -- a boost of 59% -- surpassing desktop and print for the first time in the process.

MediaPost’s Mobile Marketing Daily has more on the report and what it means for marketers.

But what’s the programmatic angle to the booming mobile ad industry? Surely it plays a part. A recent report form the IAB found that programmatic represented 52% of all display ad spend last year, or $10.1 billion. And while display banner ads made up roughly 80% of that spend, the IAB noted that mobile and video formats are quickly on the rise.

advertisement advertisement

Turn, a demand-side platform (DSP), recently told Real-Time Daily that it’s mobile and video advertising worldwide more than doubled in the first half of 2015. Similarly, Rubicon Project recently noted that mobile now accounts for over 20% of its total managed revenue, up from less than 3% one year ago -- representing a spend increase of an eye-popping 1,300%.

And according to eMarketer projections from 2014, programatic spend in mobile will surpass desktop spend this year, hauling in 56.2% of the pie.

In fact, eMarketer may have undersold their projections.

“The report predicts that spending on video ads will be $2.78 billion while spending on banner ads, rich media and sponsorships will equal $12.77 billion,” wrote Mobile Marketing Daily in the roundup. “Both figures are higher than originally forecast.”

Monica Peart, forecasting director at eMarketer, told Real-Time Daily: “Mobile display ad spending is still [growing] quite healthily in 2015.” She added that mobile programmatic display ad spend is up 61.2% on the year.

In fact, it “already makes up the majority (57%) of mobile display ad spending and continues its growth pattern as a majority share of mobile display ad spending,” Peart added.

It appears programmatic is the key driving force behind mobile’s recent surge, as “display advertising will account for the lion’s share of ad spend for the foreseeable future,” per Mobile Marketing Daily.