How Advertisers Are Using Ad Tech in Q4

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What’s up, Q4?

We’re in the middle of the biggest advertising spending quarter of the year. Last year, advertisers collectively issued over 600 RFPs and spent a disproportionate 29 percent on TV advertising during the quarter. 40 percent of all brands buying TV ads peaked their spending in Q4.

But how do brands utilize ad tech during this period? With ad tech accounting for more and more of digital advertising spend, publishers can look to 2018 to learn what 2019 will more or less look like.

To start, online ad spend as a whole was way up for the last quarter of 2018. Q4 accounted for a third of all online ad spend last year, compared to a more average 24 percent in Q1 and Q3 and a relatively low 19 percent in Q2.

In other words, Q4 isn’t just a big spending period for traditional print and TV advertising; digital advertising sees an even bigger jump. As for how brands use programmatic advertising in the last quarter of the year:

Nearly 70,000 brands bought programmatic ads. That’s the kind of number to make publishers sit up. From our post on programmatic advertising earlier this year: “Despite the complicated terms, it’s vital for publishers to fully understand the benefits and process of programmatic. While there may be some brand safety concerns along the way, programmatic advertising still presents a more efficient way to buy and sell online ad space – and it will only continue to evolve.” Last year, the number of companies buying programmatic ads was up 12 percent YoY.

DTC brands spent over $55 million in programmatic ad buy. Direct-to-consumer brands are growing both in terms of revenue and advertising spend. It makes sense that they would collectively make a big push toward the end of the year. Top spenders from this year include SmileDirectClub, Jet.com, and Squarespace.

More than 6,500 brands advertised using programmatic native ads. The popularity of native ads (for both B2B and consumer brands) is growing as the format proves itself in terms of ROI. Earlier this year, we reported that brands are using ad tech to place native ads in increasing numbers, with major companies like Amazon, Verizon and Procter & Gamble joining in on the activity.