And strength from mobile and video will keep the overall growth positive.
Insider Intelligence analyzes this industry and several others to provide in-depth analyst reports, proprietary forecasts, customizable charts, and more.Programmatic ad spending will be CA$3.61 billion in Canada this year, making up 82.1% of digital display spending. By value, that accounts for 42.7% of all digital ad transactions and more than a quarter of total media advertising.Prior to the pandemic, we had forecast growth of 17.
Programmatic direct, the primary method for placing ads in social media sites including Facebook, Instagram, and Twitter, will account for almost three-quarters of all programmatic spending in 2020. The remainder of programmatic transactions are done via real-time bidding , using private marketplaces or open exchanges to manage auctions.
PMP strength in Canada is being reinforced by conditions brought about by the pandemic. PMP's share of RTB has traditionally been higher in Canada—in 2020, its share will be 54.0% in the country, compared with 51.1% in the US. , and direct dealing is simpler and more established. We expect open exchange's loss of share of RTB will accelerate, as the industry worldwide has been shifting open exchange buys to PMPs and programmatic direct to gain more transparency in biddable transactions.
Strength in mobile and video formats in 2020 will keep overall market growth in positive territory. Programmatic spending on mobile ads will grow by 6.1% this year and programmatic video spend will be up 14.4%, as these ad formats prove especially effective for in-stream consumption in social media. These formats have gained traction for branding campaigns in Canada, in many cases at the expense of budgets earmarked for awareness ads in traditional media.
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