,2019,GLOBAL,DIGITAL,AD TRENDS,Innovation is a constant force driving theevolution of the digital media ecosystem.Digital channels are expected to providenearly all incremental spend flowing intoglobal ad budgets through 2020, andprogrammatic will account for most of thatgrowth. Publishers and media buyers mustunderstand the nuances and key trends,impacting the market in order to capitalizeon the vast opportunities available.,In such a fast-evolving industry, reliable datais the foundation of good business decisions.We have put together a compilation of keymetrics, charts and insights to inform your2019 strategies. This guide includes globaladvertising forecasts, growth trends foremerging and evolving formats, trends inheader bidding, fraud protection, and more!,2019 GLOBAL DIGITAL AD TRENDS,/,1,TABLE OF CONTENT,US DIGITAL & PROGRAMMATIC MARKETGLOBAL DIGITAL & PROGRAMMATIC MARKETMOBILE ADVERTISINGVIDEO ADVERTISINGPRIVATE MARKETPLACESHEADER BIDDINGINVENTORY & AD QUALITY,291724323742,US DIGITAL &PROGRAMMATICMARKET,2019 GLOBAL DIGITAL AD TRENDS,/,2,15%,9.9%,11.3%,0.2%,-3.5%,-3.8%,-14.7%,-16.9%,-17.8%,-4.2%,NATIONAL TV,(INC. CE),LOCAL TV,(INC. CE),OUT OF HOME,DIGITAL,RADIO,PRINT,1.9%,2.5%,PROJECTED ADREVENUE GROWTHIN NORTH AMERICA,BY MEDIA TYPEDigital media will account for nearly alladvertising growth momentum in 2019.Following a positive growth year, boostedby the World Cup and the midtermelections, Local TV is expected toexperience double digit declines in 2019.Out of home is the only traditional mediatype forecasted to grow next year.,/,3,2019 GLOBAL DIGITAL AD TRENDS,2019,2018,Source: Magna Global,Billions,PROJECTED USDIGITAL AD SPEND,Digital ad spend growth remainsstrong in the US, where over half oftotal media ad spend will be devoted,to digital in 2019. That share isprojected to rise to nearly two-thirds,/,4,2019 GLOBAL DIGITAL AD TRENDS,by 2022.Source: eMarketer,% of total media ad spend,Digital ad spend,$187.88,$172.39,$156.74,$132.32,$111.14,55.0%49.7%,59.6%,62.4%,64.9%,2018,2019,2020,2021,2022,$200,$150,$100,$50,$0,Billions,PROJECTED USDIGITAL DISPLAYAD SPEND,The share of digital spend allocated,to display advertising is expected toremain flat over the next four years.However, as digital advertising as,a whole rises, display ad spend isprojected to nearly double in the US,/,5,2019 GLOBAL DIGITAL AD TRENDS,between 2018-2022.Source: eMarketer,% of total digital ad spend,Digital display ad spend,$97.18,$88.46,$79.85,$67.87,$57.4251.7%,51.3%,50.9%,51.3%,51.7%,2018,2019,2020,2021,2022,$100$75,$50,$25,$0,/,6,2019 GLOBAL DIGITAL AD TRENDS,PROGRAMMATIC201984.5%,PROJECTED SHARE OF US DIGITAL DISPLAYAD SPEND, BY PURCHASE METHODNON-PROGRAMMATIC201915.5%201817.5%,201882.5%,Already the norm for digital displayad spend in the US, programmatictransactions will gain further marketshare as automation innovation continuesto expand into new environmentsincluding in-app and video.Source: eMarketer,/,7,2019 GLOBAL DIGITAL AD TRENDS,PROJECTED SHARE OF US PROGRAMMATICDIGITAL DISPLAY AD SPEND, BY DEVICEDESKTOP201934%MOBILE201966%Mobile growth will outpace thatof desktop to represent two-thirdsof programmatic transactions inthe US come 2019.Source: eMarketer,/,8,2019 GLOBAL DIGITAL AD TRENDS,LEADING PRIORITIESOF US COMPANIESMEDIA SPENDINGOVER THE NEXT YEAR% of Respondents, November 2018Efficiency, measurement and attributionrepresent the leading priorities for USmedia buyers in 2019. Publishers andtechnology vendors alike can providevaluable tools and insights to support thecontinuation of advertising budget flowstoward digital channels.,Increase efficiency53.3%Demonstrating that marketing strategy aligns withbusiness objectives42.0%Effective allocations of resources40.8%Improving ad viewability levels34.7%Establishing effective benchmarks in measuringcampaign success31.1%Gaining full transparency of campaign performance23.6%Ensuring that all ad campaign run in brand-safeenvironments16.6%Linking digital media with offline16.1%,Other0.2%No top priorities1.6%Source: Xaxis,GLOBAL DIGITAL& PROGRAMMATICMARKET,2019 GLOBAL DIGITAL AD TRENDS,/,9,Digital display formats, including video,will contribute over half of incremental adspend dollars projected for the 2017-2020period. Display will represent over half ofdigital ad spend by 2019.,Digital as a whole will provide nearlyall the projected growth for the globaladvertising market through 2020.,2019 GLOBAL DIGITAL AD TRENDS,/,10,Internet DisplayInternet Paid Search,Source: Zenith,TelevisionInternet ClassifiedOutdoorCinemaRadio,MagazinesNewspaper,$44.30,$22.40,$6.80$3.90$3.00$2.10$1.20,-$5.30,-$8.00,PROJECTED AD SPEND GROWTH WORLDWIDE,BY MEDIA TYPE/FORMAT, 2017-2020Billions,Billions,PROJECTEDWORLDWIDEDIGITAL AD SPEND,Global digital ad spend growth ratesremain strong. By 2020, digital,advertising will represent thatmajority of total media ad spend,2019 GLOBAL DIGITAL AD TRENDS,/,11,worldwide.Source: eMarketer,% of total media ad spend,Digital media ad spend,44.6%,$327.2848.5%,$380.4052.2%,$420.1554.5%,$457.8556.4%,2018,2019,2020,2021,2022,$200$100,$0,$500$400$300 $279.56,Billions,TOP 5 DIGITAL AD SPEND MARKETS WORLDWIDE$ billions and % YOY changeChina and the US are the only markets with over $10 billion in digital ad spend projected togrow at double-digit rates in 2019, expanding their lead as the largest digital ad markets inthe world.,2019 GLOBAL DIGITAL AD TRENDS,/,12,Source: PricewaterhouseCoopers; PubMatic calculations,$110.99,$99.82,US,$120,$100,2018,2019,$80$60$40$20$0,+11%YOY CHANGE,+14%YOY CHANGE$60.81$53.42$15.47CHINA,+8%YOY CHANGE$16.72UK,+5%YOY CHANGE$13.00 $13.71JAPAN,+6%YOY CHANGE$8.35 $8.82GERMANY,Billions,NETHERLANDS,SOUTH KOREA,INDONESIA,SWITZERLAND,ARGENTINA,AUSTRALIA,DENMARK,NEW ZEALAND,IRELAND,SWEDEN,MEXICO,RUSSIA,BRAZIL,CANADA,INDIA,ITALY,HONG KONG,THAILAND,NORWAY,AUSTRIA,FRANCE,SPAIN,+8%,+7%,+8%,+8%,+19%,+9%,+13%,+10%,+11%,+26%,+8%,+9%,+15%,+20%,+7%,+13%,+9%,+11%,+11%,+5%,+15%,+7%,2019 GLOBAL DIGITAL AD TRENDS,/,13,Source: PricewaterhouseCoopers, eMarketer; PubMatic calculations,MAJOR DIGITAL AD SPEND MARKETS WORLDWIDE$ billions and % YOY changeIndonesia is the fastest-growing digital advertising market in the world, followed by India.Both are home to large populations of increasingly digital and mobile users.$8$7$6$5$4$3$2$1$0,2018,2019,Billions,PROJECTEDPROGRAMMATICAD SPENDWORLDWIDE,Programmatic transactions willrepresent more than two-thirds,of digital display ad spendaround the globe in 2019.,2019 GLOBAL DIGITAL AD TRENDS,/,14,Source: Zenith,% of digital display ad spend,Programmatic ad spend,$57.5258.8%,45.1%$31.28,52.9%$44.61,$71.4664.2%,2015,2016,2017,2018,2019,$20,$0,$100$80$60$40,$84.8567.5%,Billions,$2.22,TOP 5 PROGRAMMATIC* DIGITAL AD SPENDMARKETS WORLDWIDE$ billions and % YOY changeDouble-digit YOY growth rates remain the norm among the largest programmatic advertisingmarkets in the world. China, Japan and Australia stand out, however, underlining revenuegrowth opportunities for APAC publishers prepared to offer inventory through automationtechnology next year.,2019 GLOBAL DIGITAL AD TRENDS,/,15,$18.02,$15.92,US,$20,$16$12,2018,2019,$2.20,$8$4$0,+13%YOY CHANGE,+24%YOY CHANGE$5.72$4.62CHINA,+21%YOY CHANGE$2.68JAPAN,+15%YOY CHANGE$2.54UK,+17%YOY CHANGE$1.14 $1.33AUSTRALIA,Source: Magna Global; PubMatic calculations*excludes search and social media,Millions,+45%,+26%,NETHERLANDS,INDONESIA,ARGENTINA,GERMANY,SWEDEN,MEXICO,BRAZIL,DENMARK,CANADA,RUSSIA,INDIA,ITALY,CZECH REPUBLIC,FRANCE,KOREA,SPAIN,HONG KONG SAR,NORWAY,+19%,+19%,+9%,+89%,+9%,+36%,+23%,+12%,+47%,+20%,+40%,+14%,+33%,+14%,+10%,+11%,2019 GLOBAL DIGITAL AD TRENDS,/,16,2018,2019,MAJOR PROGRAMMATIC* DIGITAL AD SPENDMARKETS WORLDWIDE$ millions and % YOY changeIndonesia, India and Brazil will be the fastest-growing programmatic digital ad markets in annualterms in 2019. Brazil will become only the seventh programmatic market to reach a billion-dollarvaluation next year.$1,400$1,200$1,000$800$600$400$200$0Source: Magna Global; PubMatic calculations,*excludes search and social media,MOBILEADVERTISING,2019 GLOBAL DIGITAL AD TRENDS,/,17,Billions,PROJECTEDMOBILE AD SPENDWORLDWIDE,Mobile advertising will surpass $200billion worldwide in 2019. Growth rateswill remain in double-digit territory,through 2022, at which point mobile isprojected to represent more than three-,2019 GLOBAL DIGITAL AD TRENDS,/,18,quarters of global digital ad spend.Source: eMarketer,% of digital ad spend,Mobile ad spend,$354.79,$318.53,$279.47,67.6%,$232.3471.0%,73.5%,75.8%,77.5%,2018,2019,2020,2021,2022,$200 $189.02,$100,$0,$400$300,Billions,TOP 5 MOBILE AD SPEND MARKETS WORLDWIDE$ billions and % YOY changeUS mobile ad spend will expand most in absolute terms, raising the value of the US market bymore than $11 billion in 2019 compared to a year prior. China is expected to experience thelargest growth as a percentage of spend among the five largest mobile advertising markets.,2019 GLOBAL DIGITAL AD TRENDS,/,19,Source: PricewaterhouseCoopers; PubMatic calculations,$61.30,US,$80,$20$0,$60$40,2018,2019,$30.00CHINA,$7.78,+18%YOY CHANGE$72.51,+24%YOY CHANGE$37.27,+16%YOY CHANGE$9.03UK,+10%YOY CHANGE$6.36 $7.00JAPAN,+19%YOY CHANGE$3.13 $3.72AUSTRALIA,+19%,+8%,+19%,Millions,+34%,+24%,+34%,+19%,+17%,+18%,+32%,+23%,+27%,+18%,+14%,+24%,NORWAY,NETHERLANDS,SOUTH KOREA,INDONESIA,ARGENTINA,GERMANY,MEXICO,BRAZIL,SWEDEN,DENMARK,RUSSIA,CANADA,FRANCE,INDIA,ITALY,SPAIN,+14%,2019 GLOBAL DIGITAL AD TRENDS,/,20,MAJOR MOBILE AD SPEND MARKETS WORLDWIDE$ millions and % YOY changeIndonesia and Russia are expected to experience the fastest mobile advertising growth in 2019,with each market rising 34% year over year. Additionally, Russia, Germany, Mexico, and Canada areprojected to surpass $1 billion in mobile ad spend for the first time in 2019.$3,500$3,000$2,500$2,000$1,500$1,000$500$0,2018,2019,Source: PricewaterhouseCoopers; PubMatic calculations,Billions,MOBILE INTERNETUSERS WORLDWIDE,critical mass among consumers, withover 85 percent of internet usersaccessing the web via handheld devices.,This provides advertisers and publishersalike with a strong incentive to increase,2019 GLOBAL DIGITAL AD TRENDS,/,21,investment in mobile strategies.Source: eMarketer,% of internet users,Mobile internet users,3.0484.6%,3.2386.2%,3.4187.6%,3.5788.8%,3.7189.5%,2018,2019,2020,2021,2022,2Mobile internet uptake has reached,1,0,43,MOBILE WEB VS. IN-APPMobile internet uptake among consumers is increasingly driven by apps, where users spendconsiderably more time per day. For advertisers and publishers, apps are a fundamentallydifferent environment that brings new challenges and opportunities to the fore.,2019 GLOBAL DIGITAL AD TRENDS,/,22,IN-APP,APP,TRACKING METHODAVAILABLE USER DATAAD BLOCKINGAVERAGE DAILY USAGE,MOBILE WEB, ,CookiesWeb activity (e.g, shopping habits,favorite websites)Vulnerability to in-browser ad blockers33 minutesSource: Smaato,Device IDGPS location, device type, OS, gender,age, wireless carrierAd blocking technology has not advancedto universally block in-app ads3 hours 8 minutes,2019 GLOBAL DIGITAL AD TRENDS,/,23,PROJECTED SHARE OF US MOBILE AD SPEND,BY PLATFORMMOBILE WEB2019In-app environments are driving,IN-APP201982.6%,201819.1%,201880.9%,mobile ad spend growth to approach$80 billion in the US in 2019. More thaneight-in-ten mobile ad dollars in the USwill be allocated to in-app advertisingnext year.Similar estimates are not yet availableworldwide, but growing app adoptionamong global consumers is likely to spurin-app ad spend around the globe nextyear. In Q2 2018 alone, nearly 30 billionapps were downloaded worldwide.*Source: eMarketer; *App Annie,VIDEOADVERTISING,2019 GLOBAL DIGITAL AD TRENDS,/,24,Billions,PROJECTEDDIGITAL VIDEOAD SPENDWORLDWIDE,Video is expected to remain a keydriver of advertising expenditureson display, projected to represent,nearly two-thirds of non-socialdisplay ad spend next year.,2019 GLOBAL DIGITAL AD TRENDS,/,25,Source: Zenith; PubMatic calculations,% of total non-social display,VIdeo display ad spend,$26.82,53.1%,$31.9759.0%,$37.4662.9%,$43.2366.6%,2017,2018,2019,2020,$10,$0,$50$40$30$20,Billions,PROJECTED DIGITALVIDEO AD SPENDWORLDWIDE,BY PLATFORMGlobal video ad spend is quicklyshifting toward mobile with the shareof handheld devices rising from halfto more than 70% in four years.,2019 GLOBAL DIGITAL AD TRENDS,/,26,Source: Cowen and Company; PubMatic calculations,$37.4553.5%46.5%2018,$48.1760.0%40.0%2019,$59.2665.1%34.9%2020,$70.6668.5%31.5%2021,$82.4171.2%28.8%2022,Desktop (% of total),Mobile (% of total),$100$80$60$40$20$0,DIGITAL VIDEO METRICS WORLDWIDEAlthough mobile video ad spend has gained a strong footing, representing the majority of digitalvideo spend, the portion of video ad budgets allocated to handheld devices still trails mobilespenetration of digital video viewership globally.,2019 GLOBAL DIGITAL AD TRENDS,/,27,Source: eMarketer, Cowen and Company; PubMatic calculations,2018,2019,2018,2019,DESKTOP,MOBILE,Video ad spend ($ billions)% YOY change% share of digital video ad spend,by deviceViewership (billions)% YOY change% penetration of digital video viewers,$17.416%47%0.51-4%21%,$19.311%40%0.49-4%19%,$20.054%53%1.8712%78%,$28.944%60%2.049%81%,2019 GLOBAL DIGITAL AD TRENDS,/,28,51%46%3%,INCREASEAD SPENDMAINTAINAD SPENDDECREASEAD SPEND,