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BizReport : Advertising archives : September 09, 2015

Study: Publishers frustrated by lack of programmatic competition

Programmatic advertising has given brands a better handle on parts of their ad budgets, but if you ask publishers about programmatic their response is likely to be one of frustration. That according to new Technorati data which indicates the lack of competition in the programmatic space is causing problems for publishers.

by Kristina Knight

Publishers are looking for more competition - specifically competition between demand partners. Researchers with Technorati recently polled publishers and found nearly half (45.45%) are 'frustrated' by the fact that their demand partners don't have to compete on each impression.

Because of this 49% of publishers say they're using tactics like passbacks and floor pricing to maximize their yield - and they say they don't like using these kinds of strategy measures.

"Publishers need to ensure that every impression is sold at its highest possible value. When sequential auctions or manually estimating bids for buyers are the only options for a publisher, both the buy and sell side suffer from lack of true competition and access," says Shani Higgins, Technorati's CEO. "As we learned from our survey, publishers need a lot more help than they are getting to ensure an optimal trading process."

Other interesting findings from the report include:

• 45% said their biggest challenge is the lack of competition from demand partners
• 44% said having inexpert developers on their side of things
• 43% report their biggest challenge is the inefficiency of Daisy Chaining partners
• 43% say not having the tools they need to be more effective is their biggest challenge

For buyers, 29% are using at least 6 programmatic partners; for sellers 27% are doing so. Overall, most (64%) say they use between 1 and 5 programmatic partners.

Image via Shutterstock

Tags: advertising, advertising challenges, online publishers, programmatic advertising, Technorati

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