The Interactive Advertising Bureau (IAB) issued its first revenue report on programmatic display ad revenues in the US on Monday, finding more than half of display advertising revenues were generated via programmatic buying and selling in 2014.
Online programmatic display drove $10.1 billion in revenues in the US last year, accounting for 20 percent of overall ad revenues of $49.5 billion and 52 percent of the $19.6 billion display market, according to the report, which was prepared by PwC.
Banner ads generated roughly 80 percent of the display programmatic revenues, but mobile and video formats will continue to account for more inventory and spend in the near future.
Approximately 70 percent of the programmatic revenue came through open auctions, though the report also points to shifting trends to private auctions, unreserved fixed rate or automated guaranteed selling. Ad tech firms took in about 55 percent of programmatic revenues, with publishers garnering the remaining 45 percent in 2014.
“Sizing the programmatic market has proven both challenging and illuminating, as we learned more about how that sector moves ads and money,” said Sherrill Mane, Senior Vice President, Research, Analytics and Measurement, IAB. “Once we garner deeper understanding of how things work and where standard definitions and best practices are needed, we will also gain insights into where greater opportunities exist for publishers and advertisers to capitalize on programmatic channels.”
Programmatic Fee Transparency Effort
On Monday, the IAB also launched the Programmatic Fee Transparency project, overseen by the IAB Programmatic Council. The working group is tasked with identifying areas where more transparency is needed and developing guidance for fee disclosures.
“Limited transparency around fees in programmatic has the potential to undermine trust and liquidity in the marketplace,” said Carl Kalapesi, Vice President, Industry Initiatives, IAB. “The IAB Programmatic Fee Transparency project will develop guidance around fee disclosure and transparency within the programmatic ecosystem.”
The complete Programmatic Revenue report is available for download here.