March 19, 2021

Transparency in programmatic ads


Programmatic ads buying needs transparency for many time. Last year, for the first time, programmatic ad spending in the US on private marketplaces (PMP) surpassed that on open exchanges (12.3% vs 11.8% respectively), according to eMarketer. PMPs are a subset of real-time bidding (RTB). At the same time the part of RTB in total programmatic has been decreasing for several years to 35.3% in 2020, and forecast to be 32.8% 2021. Direct programmatic will grow 18.6% to reach $53.56 billion this year (67.2% of total programmatic). While total growth will be 15% in 2021 vs 2020. In recent years, buyers and sellers have acknowledged the importance of first- and second-party data (second-party data is first-party data owned by a publisher, platform or other partner) for building stronger identity graphs and sharing unique audience insights. PMPs continue to prove a primary real-time means of bringing first-party data into a campaign or gaining access to premium audience insights selectively shared by publishers. According to a report from trade body ISBA, 49% of ad buys dissolve before reaching publishers. 34% of this money is the disclosed fees agencies and ad tech vendors take for trading impressions, while 15% is swallowed up by what the report called an 'unknown delta' on the supply chain that could not be attributed. As a result, to reduce worthless expenses companies should work on creating simpler value paths involving fewer third parties or ‘middle-players’. Vertical supply chain integration may become a key trend for 2021: creating more direct relationships and reduce the number of intermediaries in the supply chain. Tech platforms will facilitate direct, secure, and fully-accountable buying routes and will deliver financial and operational efficiency for all.

Copyright © AdsHeads 2016-2021 | All Rights Reserved