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Programmatic ad buying is declining as native advertising increases

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Business Insider – The number of advertisers running programmatic ad campaigns declined by 12% year-over-year (YoY) in Q1 2017, according to MediaRadar.

It seems that more advertisers are opting for direct ad buying as concerns about brand safety and fraud have plagued the programmatic realm.

This means that advertisers are putting more emphasis on the quality of their ad partnerships and want more control over where their ads show up.

  • Native advertising saw the biggest growth in ad buyers. The number of ad buyers purchasing native ads increase 74% YoY in Q1 2017, the largest increase of any ad format measured. Native ad formats outperform traditional ad units, and even though they’re more expensive, they garner higher click-through rates.
  • Big brands are increasingly valuing quality over quantity. Earlier this year, JPMorgan announced it would take a more hands-on approach to curating the websites on which its online ads appear. The bank saw a limited impact on ad visibility and cost when it reduced the number of sites running its ads from 400,000 to 5,000.

As programmatic native advertising continues to expand, it will be video that offers the biggest opportunity for growth. And as consumers and advertisers alike continue to shift their attention to mobile, desktop devices still play an important role in native video advertising.

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BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on programmatic TV advertising that:

  • Forecasts US programmatic TV ad revenue through 2021.
  • Highlights the top beneficial attributes of PTV.
  • Explores some of the top barriers and challenges to PTV adoption, including measurement hurdles and fears around commoditizing TV inventory.
  • Outlines strategies some networks are taking when incorporating PTV in their upfront offerings.

 

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