The demand side platform for programmatic advertising market provides customers or advertisers information about the digital space available for the effective advertisement and helps them to purchase digital advertisement inventory. The demand side platform for programmatic advertising system makes the purchase more effective by integrating multiple sources and advertisement exchange platforms to provide the customers a holistic approach for the procurement of digital advertisement space.
The demand side platform for programmatic advertising systems gained prominence amongst the advertisers as the markets operating across various sectors analyzed and assessed the importance of digital advertisement amongst prominent sectors. The customers using demand side platform also get to know about the platforms used for advertising, the regions and demography covered in the campaign, and also the target audience covered by getting information about the psychographic extension.
The demand side platform for programmatic advertising market was valued at USD 8.95 billion in 2019 and is projected to grow with a CAGR of 22.7% during the forecast period. Its ability to manage multiple ad exchange and data exchange using a single platform drives the market growth.
The use of digital platforms and increasing number of target audience appearances on the internet is propelling the demand for the demand side platform for programmatic advertising among the organizations that are looking to canvas more intense and effective advertisement campaigns in order to solidify their presence in the sector. As per the study by Pixilate, connected TV (CTV) and over-the-top (OTT) solutions provide a 330% rise in ad transactions. The OTT AND CTV mobile applications also witnessed a 232% surge in the programmatic advertisement market. All these developments clearly point outs the factor that the better possibilities to reach the target audience through digital advertisement is increasing the willingness of customers to procure demand side platform for programmatic advertising.
The use of demand side platform for programmatic advertising technology is increasing due to the exhaustive increment in website data and applications in the market. The increasing spending of time on the online platform is also increasing number advertisement appearance. Also, different customers utilize their online time on different platforms demand side platform for programmatic advertising analyse this data and based on that help the advertiser to put a bid on the slot which increase effectiveness of advertisement.
Around 67% of the market of platform for programmatic advertising technology is governed by prominent players in the market. The developing stage and niche and unexplored opportunities of the market are the main reasons behind this extreme consolidation. But, over the years, the market is expected to develop, and the new market entrants are expected to perform effectively in the market
The COVID-19 outbreak is expected to curb the growth perspectives in the first half of the forecast period. The downfall of the service sector and the complete shutdown of multiple organizations, owing to financial crises, hinders the market growth. Impressive data consumption and expenditure of the customers on the online applications and site is expected to lure in many players towards the use of digital advertisement mode, further driving the market growth.
The real time bidding (RTB) application segment holds the lion’s share in the market on account of the wide acceptance by most of the operators serving in the market and significant utilization of remnant advertising by companies looking for advertising with limited economic constraint. The use of RTB services also help the advertiser to focus on direct sales and reconstruct the pricing of the products based on the sales information after implementation of RTB demand side platform for programmatic advertising.
The entrance of many global technology providers in the demand side platform for programmatic advertising market will increase the traction of customers towards the demand side platform for programmatic advertising solutions. Companies such as IBM and SAP Xerox possess better market reach and established sales channels in the market. These companies also provide products in diverse regions and have impressive after-sales services and consultation regarding the effective application of demand side platform for programmatic advertising. These characteristics and benefits of using RTB are expected to provide strong sales opportunities in the demand side platform for programmatic advertising market.
North America is anticipated to cater to a considerable share in the market on account of the increasing adoption of demand side platform for programmatic advertising, the exhaustive use of online applications, smartphones, and dependence of the community on the internet. The adoption of demand side platform for programmatic advertising provides coverage of prominent ad inventory and also improves the effectiveness of the ads by improving appearance for the target audience, further driving the market growth.
Asia-Pacific’s demand side platform for programmatic advertising market is anticipated to grow with a significant CAGR on account of the availability of a massive target audience on the popular online platforms. The use of demand side platform for programmatic advertising provides considerable advantages for the advertisers in many emerging countries of the region, such as India and countries comprised of the ASEAN region, further providing an impetus to the market growth
The demand side platform for programmatic advertising market is a highly fragmented market, owing to the high number of players. The wide spectrum of available features in demand side platform for programmatic advertising systems are attracting multiple manufacturers to enter into the market. The manufacturing of demand side platform for programmatic advertising systems taking requirements of the end use applications into the consideration is the product strategy that many manufacturers are relying on to augment their share in the global market
Although, many start-ups are looking to solidify their footprints in various regions, there are certain global brands performing fairly in the global market. Many global players operating in the market are aiming to finalize the mergers and acquisitions strategy to hold a strong foot in the market. The mergers and acquisitions help these players to gain better market penetration, intellectual property rights over the start-ups, and variety in the product portfolio. The customer base of the acquired company also consolidates towards the player, thus strengthening the position of the company in the region and collectively in the overall market
The market fragmentation is also affecting the increased pricing and differences in the add appearance on the basis of the company serving the advertiser to gain more market reach by usingDemand Side Platform for Programmatic Advertising system. Growing purchases by using e-commerce and online purchasing platforms are compelling the players to put themselves in online advertisements in order to gain entry into the market and attract the customer towards the products of the company.