November 1st, 2016 | Read more articles from 2016 or Visit the News Archive
Quality, Transparency of Inventory Top Programmatic Buying Fears
Programmatic is expected to make up 73.0% of all US display ad spending
While advertisers see many advantages to programmatic buying, and are increasing programmatic budgets as a result many are uneasy about inventory. According to August research, more than half of US ad agency professionals are worried about the quality or transparency of their inventory sources.
According to August 2016 polling by Strata, nearly 60% of ad agency professionals said they were fearful about the inventory quality available when engaging in programmatic buys. And it’s an anxiety that has grown along with programmatic buying itself: In May 2015, only 48.0% were concerned about this.
Transparency of inventory was yet another top fear, and it too had grown since May 2015. A little more than half (or 52.7%) of those polled said this was problematic.
Despite these fears though, eMarketer predicts that programmatic display ad spending will hit $25.23 billion this year in the US. Programmatic is also anticipated to account for 73.0% of all display ad spending.
The fears of ad buyers like those surveyed by Strata could be one reason why more programmatic ad spending is occurring through programmatic direct channels, as opposed to real-time bidding.
eMarketer estimates that this year, 53.0% of programmatic display ads will be transacted directly, up from 48.0% in 2014. By 2018, that share will rise to 56.0%.