May 19, 2020

Budget cutting

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According to a recent Interactive Advertising Bureau (IAB) study, more than a quarter of the 400 surveyed buy-side decision-makers said they planned to reduce the budget to buy ads on news publishers in the short-term. Conversely, just 18% of those surveyed said they planned to reduce spend on programmatic. In fact, 29% of the respondents said they would increase the budget they spend on programmatic ads. This controversial tendency to cut ad s...pending in one place (like news sites) and increase in other place (like programmatic ads) can be explained. “Implementing stricter brand safety rules helps avoid some of the awkward conversations that happen when you cut advertising spend,” said Ratko Vidakovic, founder of an ad tech consultancy AdProfs, to Digiday. Pulling ads from news sites in the name of brand safety could be an indirect but intentional way to keep media costs down, he added. Safety in this case means that advertisers don’t want to publish ads next to news about coronavirus. “The data suggests ad spend is slowly starting to pick up but there’s a chance the allocation of where that money goes might change,” said Vidakovic.

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