In the first half of 2021, Vox Media has seen a shift in advertisers becoming more willing to do a do a direct buy, like a branded content deal, and supplement it with programmatic buying. We see that with advertisers like Target who spends more than 90% through private channels, and recently Walmart, HP and L’Oreal who have grown to almost 70% private.”Īt the same time, as advertisers push more money into the programmatic private market, they are increasingly not seeing programmatic versus direct buying as an either-or proposition. “2020 forced an evolution of brand strategies that prioritized higher quality inventory and specific guarantees that comes with private deals. “It feels like we’re really moving to the ‘Year of Private,’” said Jamie Calandruccio, svp of product marketing and partnerships at Operative, in an email. In the first half of 2021, the average CPM for display and video impressions sold privately, including through programmatic guaranteed and programmatic direct deals, was $6.77 versus $1.95 for impressions sold in the programmatic open marketplace, according to the data from Operative and STAQ. Helping to fuel the rebound has been advertisers moving more money from the programmatic open market to the private market where impressions can sell for four times the price because of inventory assurance that the private market provides. publishers’ programmatic revenues and ad CPMs through the first half of 2021 have exceeded their year-over-year comparisons for not only 2020 but also 2019, according to benchmarking data from ad tech provider Operative and its subsidiary STAQ. We saw that recovery in the second half and it’s continued through now,” said one publishing executive. “2020, for us, programmatic was the canary in the coal mine. However, the pandemic may have been the bigger immediate catalyst in improving publishers’ programmatic relationships with advertisers.Īs advertisers tightened their purse strings to manage the economic impacts of the pandemic, they leaned on purchasing standard ad formats, like banner ads as well as in-stream and out-stream video ads, programmatically because of the familiarity and reliability of the ad formats and the flexibility of the buying method. With the third-party cookie on its way out (eventually), advertisers are increasingly accepting that they need to work more closely with publishers that have the audience data to inform who will see a brand’s ads and that can ensure an advertiser knows what inventory they’re buying. Even at that, it took the cookie collapse to really push this control back into our court.” “It’s taken us this long to figure out how to regain that control. Having direct relationships with advertisers for programmatic sales “is what we’ve been fighting for since 2015 when the myth of programmatic was first busted and said, ‘Why shouldn’t we buy you in the open auction?’” said Scott Messer, svp of media at Leaf Group. And over the past year and a half, they have moved ever closer to that promised land. So they’ve been trying to work their way back to reestablishing direct relationships with advertisers while taking advantage of the efficiencies of automation. They may have provided the inventory on which the programmatic ad market is built, but the influx of intermediaries - from demand- and supply-side platforms to ad exchanges and agency trading desks - put them on the outskirts. Not only have programmatic ad prices rebounded to exceed pre-pandemic marks, but publishers are enjoying more direct dealings with advertisers purchasing their inventory programmatically through private channels.įor the better part of the past decade, publishers have tried to protect their positions in the programmatic ad ecosystem. Publishers have absorbed the hits of the pandemic and the third-party cookie’s eventual demise, and they found the two to have actually put their programmatic advertising businesses in a better place. BDG buys Some Spider Studios, Vice Media’s SPAC talks hit a lull, AT&T nears a sale of Xandr, newsrooms resist office return plans and more.3 questions with Just Women’s Sports’ Haley Rosen.Publishers look to beef up their editorial, tech and advertising teams.This week’s Media Briefing looks at how the pandemic and the cookie’s eventual demise have created the conditions for the programmatic ad market that publishers have been pushing for, with a shift to private buying coinciding with prices pushing past pre-pandemic levels.
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