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BizReport : Advertising archives : December 06, 2016

Forecasts: Programmatic, Native on the up

Two forecasts indicate a strong growth period is in the works for both Programmatic and Native advertising. Here's how it breaks down:

by Kristina Knight

First, Goodway Group's new Programmatic Pricing Forecast indicates a 15% to 20% increase in programmatic display pricing as we move into 2017 and head toward 2018; their forecast also suggests programmatic will move from a CPM-based model to a dCPM base model. Dynamic CPMs (dCPMs) are a way for marketers, especially smaller businesses, to better manage costs while still optimizing campaigns.

"We are expecting a fairly significant jump in pricing throughout the next year due to the changing nature of the market. We as an industry are getting much better at removing fraud and improving viewability, which causes our inventory pool to be smaller with each improvement in these areas. With less to buy, prices increase," said Jay Friedman, COO of Goodway Group. "Overall, this trend will have a positive impact on advertisers who can expect to get more bang for their buck with less spend wasted on viewability and fraud issues."

Meanwhile, Advertiser Perceptions believes the next five years will show strong growth for Native formats, with social helping to push growth. Researchers found that about 84% of those using Native formats are using them in social; just over half (60%) use publisher sites for Native placements.

"Advertisers are preoccupied with reaching Millennials and Gen Xers, and they associate digital platforms with younger audiences," said Kevin Mannion, Chief Strategy Officer at Advertiser Perceptions. "The other comes down to marketing and sales. The digital and programmatic platforms are impressing advertisers with their press attention, audience stories and sales force expertise. In particular, Facebook's promise of people-based marketing that enables ads to appear in the stream of a conversation has given them first choice at the native budgets."

The report breaks down Native budgets like this: 43% Publisher (25% decrease YoY), 19% Native Programmatic (no change YoY), and 39% Social (14% YoY increase).

Tags: 2017 ad forecast, Advertiser Perceptions, advertising, advertising forecast, Goodway Group, Native advertising, programmatic advertising

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