Programmatic ad spending is a growing trend that radio is increasingly focused on.
Proponents say it’s an easier way to buy and sell ads with more and faster accountability and it’s catching on in the video world.
Automated ads will top $10 billion this year, with that figure to double by 2016, according to eMarketer. Programmatic ads are purchased two ways — with real-time bidding or directly.
Automated ad spending will account for nearly half of U.S. display advertising this year, according to eMarketer.
Though few of the dollars have come to radio yet, supporters say programmatic or automated ad spending can return radio to the ad spend in a meaningful way — and return money to radio that has migrated to mobile advertising, which advertisers find easier to buy and sell.
“Programmatic advertising has gotten a lot of hype in the past 12 to 24 months, but it’s finally fair to say that today, holdouts on participation are proving the exception, not the norm,” said eMarketer Analyst Lauren Fisher. She characterizes 2014 as “a pivotal year,” and says with the majority of infrastructure now laid and “testing well in progress, we’ll see programmatic ad spending explode from 2015 into 2016.”