MediaRadar’s recent report on Consumer Advertising Trends, showed a 12% decrease in the number of programmatic advertisers Q1 YOY (2016-2017), from 45,008 in 2016 to 39,415 in 2017.
What does this mean for programmatic?
The decline in programmatic is likely due to the evolving needs and priorities of advertisers. In the wake of recent brand safety mishaps, many have focused on brand safety, rather than just impressions. Furthermore, advertisers seek more transparency in the ad buying process. The impetus on ROI, continues to mount.
Todd Krizelman, CEO of MediaRadar, gave his take, saying: “For many years, the transition of dollars from direct ad buying to programmatic seemed inevitable, and impossible to roll back. But the near-constant drumbeat of concern over brand safety and fraud in the first six months of 2017 has slowed the tide. There is more buying of direct advertising, especially sponsored editorial, and programmatically, there is a ‘flight to quality.’ Investment is moving actively into private marketplace programmatic,” shared with Digital Daily News via email.
A continued shift to programmatic direct will significantly impact the number of programmatic advertisers. Programmatic direct offers a private marketplace exchange, commonly referred to as PMPs, that general programmatic buying lacks. This model allows advertisers and publishers arrange deals “directly’ with a fixed price and inventory. However, placements are still handled by automated software.
Programmatic direct buying is also appealing to advertisers seeking quality-focused performance. It can offer a guaranteed price and quantity on specific placements showing success. Of course, this is also dependent on the amount inventory available.
Overall, programmatic direct offers closer interaction between buyer and seller than general programmatic. As this model continues to grow in the ad buying industry, it is safe to assume that programmatic direct will be the way forward in digital advertising.