Professional Documents
Culture Documents
But if there’s one thing that’s clear about our industry, it’s this:
Change is the rule, not the exception – so, you can expect a
whole lot more of it in 2018. In order to help you prepare, we’ve
compiled this data-driven guide. Inside, you’ll find the numbers,
charts, and graphs you need to refine your 2018 strategy,
including information on emerging formats, header bidding
adoption, the state of the duopoly, and more! Read on, arm
yourself with knowledge, and get ready for a productive 2018!
Table of
Contents
The U.S. Digital and Programmatic Landscape 4
Digital Advertising Around the World 9
Video 15
Native 23
Mobile 28
Ad Fraud 34
Machine Learning and AI 39
Header Bidding 43
Duopoly 48
The U.S. Digital
and Programmatic
Landscape
4
Total Projected
U.S. Digital Ad Spend
Digital Ad Spending (billions)
Percent of Total U.S. Ad Spend
$140 55%
$129.26
$117.53
$120
$105.44 50%
51.31%
$100 $93.75
48.94%
45%
$80 $71.60 46.56%
Some good news:
Digital ad spend $59.82 43.62%
continues to rise $60
40%
and take up a 40.48%
bigger share of all $40
ad dollars. By 2021,
digital ad spend 36.71% 35%
is expected to $20
32.70%
represent a majority
of all U.S. ad spend. $0 30%
2015 2016 2017 2018 2019 2020 2021
Source: eMarketer 5
Total Projected
U.S. Programmatic
Ad Spend (Display)
Programmatic Digital Ad Spending (billions) $50 100%
Percent of Total Digital Display Ad Spend $45.72
$45
95%
$39.10
$40
Source: eMarketer 6
U.S. Desktop
Display Viewability
Rates by Ad Size
300x1050 78.10%
160x600 66.80%
300x600 64.70%
970x66 62.00%
Ad Size
970x250 54.00%
970x90 53.50%
Total viewability for desktop
display ads is 53.6%, 300x250 52.90%
meaning that nearly half of
all display ads purchased 728x90 49.80%
are never seen by anyone.
0% 10% 20% 30% 40% 50% 60% 70% 80%
In-View Rate
Source: eMarketer 7
U.S. Display Ad
Click-Through
Rates by Format 0.08%
0.08% Enhanced
Custom
In-Page
Banner
0.06%Rich Media
0.07% Image
0.03%
HTML Banner
Source: eMarketer 8
Digital Advertising
Around the World
9
Projected Digital Ad Spend Of the top five digital
ad markets, China is
by Country: 2017 vs. 2018 expected to see the most
growth in 2018 at 13.9%.
(Markets of $7B and above)
2017
2018
$100
$97.16
$86.39
$80
Total Spend (Billions)
$60
$50.76
$44.59
$40
$7.00 $6.76
$6.00 $5.66
$6.20 $5.15
$5.00
$4.57
Total Spend (Billions)
$5.24
$4.00 $4.77
$4.20
$3.00 $2.56
$2.26 $2.38 $2.21 $2.22
$2.01 $1.90
$2.00 $1.67 $1.50
$2.27 $1.34 $1.38
$2.14 $2.09 $2.03 $2.00 $1.86
$1.00 $1.48 $1.48 $1.28 $1.25 $1.23
$0.00
Australia South Korea Canada France Brazil Italy Russia Netherlands Sweden Spain Indonesia Switzerland Mexico Denmark Hong Kong
$1.00
$0.80
$0.40
$0.20
Taiwan
Norway
Poland
India
Turkey
Argentinaa
Czech Republic
Belgium
New Zealand
Austria
Ireland
Thailand
Izrael
Philippine
Malaysia
UAE
Hungary
Saudi Arabia
Singapore
Finland
Greece
Chile
South Africa
Colombia
Portugal
Kenya
Egypt
Peru
Romania
Nigeria
Venezuela
Vietnam
Pakistan
Source: PWC Outlook 12
0%
5%
10%
15%
20%
25%
30%
35%
40%
Pakistan
Egypt
Indonesia
Venezuela
Greece
Romania
UAE
Saudi Arabia
Colombia
Argentina
Kenya
Peru
spend grow this year in
Poland
China
How much will digital ad
Russia
Singapore
Ireland
Hong Kong
Brazil
Israel
US
Switzerland
Turkey
Czech Republic
Norway
Hungary
Sweden
New Zealand
UK
Taiwan
Australia
Austria
Netherlands
France
Belgium
South Korea
Canada
Spain
Denmark
Germany
Japan
Italy
Finland
Spend Growth by Country
2018 Projected Digital Ad
13
Projected Digital Looking at the broader regional trends,
this is the year Asia-Pacific is expected
Ad Spend by Region to overtake North America as the world’s
leading destination for digital ad dollars.
Through 2021
Asia Pacific
North America
Western Europe
$160.00
Latin America
Central & Eastern Europe
$140.00
Middle East & Africa
$120.00
$80.00
$60.00
$40.00
$20.00
$0.00
Source: eMarketer 14
Video
15
Total Projected U.S.
Programmatic Video
Ad Spend
Programmatic Digital Video Ad Spending (billions) $14.00 $13.43 90%
Percent of Total Digital Video Ad Spending
$11.43
$12.00
80%
$6.00
$6.42
50%
The last two years have seen $4.00 $3.00
a huge influx of dollars into
the US programmatic video 40%
$2.00
market. Growth is expected
39.00%
to continue, but at a slower
pace in 2018 and beyond. $0.00 30%
2015 2016 2017 2018 2019
Source: eMarketer 16
Projected Share of 2017 is the year mobile
overtook desktop in
Programmatic Video Ad Spend programmatic video ad
spend. The gap is expected
by Device, 2017 vs. 2018 to widen further in 2018.
Desktop Desktop
Mobile Mobile
45% 42%
55% 58%
2017 2018
Source: eMarketer 17
2017 Video Ad The completion benchmarks every
video advertiser needs to know.
Benchmarks
Source: eMarketer 18
Video Ad Formats Users
Report as Interruptive
(U.S. Internet Users)
Desktop Mobile
$250
184.7 181.7
$150
$100
$50
$0
2017 2018 2019 2020 2021
Source: eMarketer 20
Average Time per Day
Spent with Video for
U.S. Adults: TV vs.
Digital Time per day
(Hours:Minutes)
TV
Digital Video Consequently, as
digital video grows, we’re
seeing users spend less
and less time per day
watching broadcast TV.
Source: eMarketer 21
U.S. CTV Users by Device With over 168 million users in
the U.S. alone, CTV keeps on
growing. But which CTV devices
are the cord-cutters flocking to?
81.2
$80
62.8 $70
$60
36.9 38.9
35.8 $40
29.0 $30
21.3
$20
$10
$0
23
Total Projected U.S.
Native Ad Spend
(billions)
$16.21
$22
.09
2018 2017 2016
Native ad spend in
the US is estimated
27.8%
YoY Projected
to reach $28 billion in
8. 2 4
$2
2018, a 27.8% percent
increase from 2017. Increase
Source: eMarketer 24
2017 Share of Total Native Ad
Spend: Social Networks vs.
All Other Native Display
15.84%
All Other
Native Ad
Spend
84.16%
The vast majority of that spend
goes to social networks. Native
advertising on the open internet –
Native Social Network Spend what most people probably think of
when they think native – accounted
for just under $3.5 billion in spend.
Source: eMarketer 25
Click-Through Rates (CTR):
All Display vs. Native Display
0.09%
All Display
0.80%
Native Display
Source: eMarketer
Food & Drink 1.10%
Travel 0.90%
Technology B2C
B2C
0.90%
Entertainment 0.80%
CPG 0.80%
Native Ad Click-Through
Rates by Brand Category
Business 0.75%
Education 0.70%
Automotive 0.70%
Sports 0.65%
brand categories.
well for advertisers in
the Pets, Food & Drink,
performed particularly
27
Mobile
28
Total Projected U.S. Mobile Programmatic mobile spend in the
US continues to rise, and made
Programmatic Ad Spend up 74.1% of all programmatic
display spend in 2017. That share is
expectedto climb to 77.0% in 2018.
$35
$36.09
$30
$30.09
$25
$24.14
Total Spend (Billions)
$20
$15 $17.99
$10
$10.68
$5
$0
2015 2016 2017 2018 2019
Source: eMarketer 29
U.S. Programmatic
Mobile Ad Spend:
In-App vs. Mobile Web 97% In-App
3%
Mobile Web
Source: Smaato 30
2017 U.S. Mobile Ad Display, search, and rich
media are the formats
Spend by Ad Format driving mobile ad spend.
$30.25
$30.00
$25.69
$24.28
Total Spend (Billions)
$20.00
$10.00
$5.96
$2.15
$0.00
2017-2021
Display
Search
Banner, Rich Media, Sponsorship
$52.69
$50
Video
Other (Classifieds, Email, Lead Gen)
$47.85
$44.81
$42.36
$40
$41.85
$40.65
$38.13
$36.30
$36.05
$33.79
$30
$30.25
$30.75
$29.07
$25.69
$24.28
$20
$10.84
$9.72
$8.57
$7.22
$5.96
$10
$4.51
$4.21
$3.60
$2.15
$2.71
$0
2017 2018 2019 2020 2021
Source: eMarketer 32
U.S. Mobile Display
Ad Viewability Rates
14
0% .
7.8
19
28.
70
47.20
.60
%
20%
%
3.90%
%
Performance benchmark:
How long are mobile ads in view?
Source: eMarketer 33
Ad Fraud
34
Global Estimated Ad Ad fraud accounted for over $14
billion in lost revenue in 2017.
Revenue Lost to Fraud By 2022, that total is expected
to rise 214% to $44 billion –
!
unless we band together to
stop it in its tracks.
2022 estimate
2017
$44.00
(billions)
$14.20
13%
Social media risks
and reputation
management 7% Other
5%
Incompatible
site content 7%
Fake news and 5% Phishing, scams
and/or brand Ad fraud and
digital media Viewability
mistrust of digital
hijacking
website traffic
advertising
verification
43%
across all formats and channels.
32%
25% Require clarity from Third-party traffic
We reduced the media
vendors on how they validation technology
budget assigned to in- combat fraud
app advertising
19%
We aggressively
25% 31% 32%
28%
update blacklists
6% We subscribe to a
blacklist service
We reduced the media Require clarity from
Have not responded budget assigned to vendors on how they
yet but plan to We implement combat fraud
mobile web advertising
target white lists
39
Projected Worldwide
AI Technology Investment
Companies across
nearly all industries
are expected to rapidly
embrace artificial
intelligence in 2018
and beyond.
$2.35
2017
$6.03
2018
$11.45
2019
$19.28
2020
$28.96
2021
Source: eMarketer 40
Retail Marketers’
Attitudes Toward
AI in Marketing
86%
Makes marketing teams
86%
more effective
82%
79% Allows marketing staff
Marketers are especially
excited about what AI can do
Changes the role of to focus on value-
generating tasks as AI
for them. 80% of surveyed
marketing toward
more strategic work automates workflows marketers say AI will
revolutionize their role.
Source: Emarsys 41
Areas Marketing
Leaders Believe
Sentiment analysis 56%
Source: Salesforce 42
Header
Bidding
43
Percent of Top 1,000 U.S.
Web Sites Using Header
Bidding, January 2018
27%
Do not
73%
use header
bidding
Use header
The vast majority of the most bidding
popular, programmatic ad-
supported sites on the internet
have adopted header bidding.
Source: ServerBid Header Bidding Industry Index. Note on methodology: ServerBid tracks header
bidding usage among the top 1,000 sites using programmatic advertising, as ranked by Alexa.com. 44
Header Bidding Sites
in Top 1,000 by Type of No wrapper
What kind of
Right now, more than half wrapper do
of header bidding adopters the top 1,000
are only using a client-side header bidding
wrapper. But server-side header
bidding can help publishers add
sites use?
more demand partners without
increasing latency. 7.91% of 54.71% 28.24%
Hybrid wrapper
header bidding adopters are Client-side
using a server-side wrapper, wrapper only
while 28.24% are deploying.
48.6%
47.6%
for the top 1,000 sites.
40.6%
We’ve seen firsthand how machine learning can optimize programmatic
39.1%
campaigns. When Greenhouse Group tested APP’s augmented line item
feature – which uses machine learning to constantly optimize inventory
34.4%
33.4%
32.9%
selection and bid strategy – against a manual campaign managed by one
of their best traders, they found that APP achieved 13% lower CPCs while
decreasing manual operation time by 73%.
23.9%
6.6%
14.4%
13.1%
4.2%
4.5%
12%
3.3%
10.1%
8.2%
7.8%
7.1%
7.1%
AOL
TrustX
Open X
Kargo
bRealTime
TripleLift
RhythmOne
YieldBot
Conversant
Pubmatic
DistrictM
PulsePoint
Sonobi
Sovrn
Criteo
Rubicon
Amazon
Index
AppNexus
Source: ServerBid Header Bidding Industry Index 47
Duopoly
48
Duopoly vs. All Publishers:
Estimated Share of Total
U.S. Digital Ad Revenue
Duopoly (Facebook and Google)
Other
65.80% 67.60%
63.10%
58.40%
54.70%
Facebook and Google
took up a whopping 63.1%
of U.S. digital ad revenue
in 2017, and their share is
projected to grow further
in the next two years.
2015 2016 2017 2018 2019
Source: eMarketer 49
Duopoly vs. All Publishers: The concentration has gotten worse
since 2015, when Google and Facebook
Yearly Estimated Digital began capturing new digital ad revenue
at a much higher rate compared to
Ad Revenue Growth publishers and other platforms.
Duopoly (Facebook and Google)
Other
31.80%
27.80%
25.30%
20.80%
18.20% 19.20%
17.70%
15.60%
14.70%
12.40%
10.60%
9.00% 9.90%
6.50%
4.80%
2.80%
2012 2013 2014 2015 2016 2017 2018 2019
Source: eMarketer 50
Duopoly vs. All Other
Publishers: Estimated Other
Share of U.S. Mobile
Ad Revenue 41.50%
Duopoly
(Facebook & Google)
58.50%
The duopoly captures a
lower – but still a clear
majority – share of mobile
ad revenue as well. In 2018,
that share is expected to
jump from 58.5% to 60.9%.
Source: eMarketer 51
Where Digital Video
Ad Revenue is Going,
According to Senior
U.S. Marketers 9.1%
OTT
24.7%
Mobile
39%
Facebook
53
U.S. Display Ad
Click-Through
Rates by Format
0.08% Custom
In-Page
0.08%Enhanced
0.07% Image
0.05%
Flash In-Page
Banner
0.03%
0.06%
HTML Banner
Source: eMarketer 54