Programmatic ad sales are down 12% whilst mobile continues to flourish

Native, email and mobile advertising were all up – 74%, 28% and 8% respectively; whilst fewer marketers purchased programmatically in Q1 2017 compared to Q1 2016 (-12%). That’s according to the latest report by intelligence platform MediaRadar, which highlights that digital advertising is largely shaped by up and down trends.

Whilst in 2016, 45,008 advertisers purchased ads programmatically, 39,415 did so in Q1 2017 marking a 12% drop in programmatic ad sales. Much of this decline is driven by brand safety and fraud concerns. In contrast, buying of direct advertising increased via sponsored editorial posts. It appears that more money is now going towards the private marketplace when it comes to programmatic.

“There has been a noticeable drop in ad pages and spend from the start of 2016 to now, That being said, there are still a considerable amount of pages being bought. Niche and enthusiast titles are on the rise, with some regional titles flourishing,” Todd Krizelman, CEO & Co-Founder of MediaRadar, explained.

When it comes to formats, there was a clear shift toward higher CPM formats including mobile, native, email and video advertising during 2017. Out of these, native saw the steepest rise.

The leading product categories featuring native ads are the entertainment sector, professional services, real estate, technology and wholesale.

Among the leading mobile advertisers were Brown-Forman, Time Warner and Anheuser-Busch.

Krizelman adds:

“After years of growth, the decline in programmatic buyers is likely attributed to concerns around brand safety – especially given recent problems for companies like YouTube. This form of advertising is continuing to evolve as brands seek more control over where their ads are running. We expect to see programmatic rise as more brands move to programmatic direct models.”