This year, for the first time, programmatic ad spending on private marketplaces (PMP) will surpass that on open exchanges. PMPs—a subset of real-time bidding (RTB) in which some sort of private deal exists between a publisher or a small group of publishers and select ad buyers—will see double-digit growth throughout the forecast period. Growth in PMP ad spending will outpace that of the open markets by about 3 to 1 in 2020 and beyond.
Many of the factors limiting open market investment are driving dollars into PMPs, which buyers and sellers deem safer and more compatible with their long-term strategies.
Also driving investment in PMPs over the next 24 months are:
But while PMPs will comprise a growing portion of total RTB ad dollars, RTB’s overall share of programmatic display ad spending will decline during the next 24 months.
During this timeframe, spending on programmatic direct (a category largely dominated by social) will also expand, thanks to continued investment in social advertising and premium ad formats like audio, over-the-top (OTT) and connected TV ads, which all often transact via guarantees.
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