Programmatic advertising uses technology to automate the buying and selling of digital ads. However, brand safety, viewable inventory, and fraudulent impressions are major concerns for marketers as 36% of all programmatic impressions are considered fake. The document also shows data on the growth of programmatic display ad spending in the US from 2011 to 2017.

1. PROGRAMMATIC USING TECHNOLOGY TO AUTOMATE
THE BUYING AND SELLING OF DIGITAL ADS.
Brand Safety
Viewable Inventory
Fraudulent Impressions
Uncluttered Environment
SAFETY/QUALITY#1CONCERNOFMARKETERS
36% OF ALL PROGRAMMATIC IMPRESSIONS ARE CONSIDERED FAKE.
4% 24% 29% 43%
!
NonprogrammaticRTB Non-RTB Programmatic
11%
19%
28% 34%
41% 47% 52%
13%
18%
25%
29%
32%
32%
31%
76%
62%
47%
36%
27% 21% 17%
US Display Ad Spending Share, by Type, 2011-2017 % of total
NOTE: read as 28% of display-related spending was through RTB in 2013; numbers
may not add up to 100% due to rounding
SOURCE: MAGNA GLOBAL as cited in press release, Oct. 14, 2013
RTB Open Auction
Unreserved
Inventory
Auction
Pricing
Buying impressions based on audience
across multiple data sources. Inventory
across publishers that lacks control of
the buy but extends campaign reach.
Automated
Guarantee
Reserved
Inventory
Fixed
Pricing
Inventory pre-network stage that has
a premium cost for added transparency
and placement.
Unreserved
Fixed Rate
Unreserved
Inventory
Fixed
Pricing
Publishers offer preferred deals for
volume spend with flexible inventory.
Invitation Private
Marketplace
Unreserved
Inventory
Auction
Pricing
Publishers offers inventory to select
brands through an exchange. Highly
selective, requires large scale budgets
but is premium inventory with greater
transparency.
RTB Non-RTB programmatic
US Digital Ad Spending, 2011-2017 billions, % change, % of total media ad spending
NOTE: includes advertising that appears on desktop and laptop computers as well as
mobile phones and tablets, and includes all of the various formats of advertising on those
platforms; data through 2012 is derived from IAB/PwC data
SOURCE: eMarketer, Aug 2013
2011 2012 2013 2014 2015 2016 2017
$31.99
$36.80
$42.26
$47.58
$52.49
$57.30
$61.35
21.7%
22.3%
24.7%
26.8%
28.6% 30.0% 31.1%
20.2% 15.0% 14.9% 12.6% 10.3% 9.2% 7.1%
% of Total Media Ad SpendingDigital Ad Spending % Change
US Programmatic Display Ad Spending, 2011-2017 billions, % change
NOTE: includes both RTB and other programmatic/automated platforms for banner, social
and video ads on desktop and mobile devices
SOURCE: MAGNA GLOBAL as cited in press release; eMarketer calculations, Oct. 14, 2013
2011 2012 2013 2014 2015 2016
$2.8
$4.8
$7.5
$9.8
$12.4
$14.8
71.4%
56.3%
30.7%
26.5%
19.4%
Programmatic Display Ad Spending % Change
$16.9
14.2%
2017
2011 2012 2013 2014 2015 2016 2017