NEW YORK, Aug. 6, 2015 /PRNewswire/ -- Programmatic selling accounts for a higher percentage of revenue today than ever before and is expected to increase substantially in 2016, according to a new report by AdExchanger Research, a practice designed to provide thoughtful analysis on the digital media and marketing technology ecosystem. This information was uncovered in the second annual survey on programmatic media and is now being revealed as a second installment of a two-part series announcing the results of this extensive research.
This second installment of the survey focuses primarily on publishers. The first part concentrated on marketers and was presented at Programmatic I/O San Francisco this past April. This is AdExchanger Research's largest study to-date and contains insights from more than 800 members of the digital advertising community, including marketers, agencies, publishers and technology vendors.
Nearly a quarter (24 percent) of publisher respondents report that more than 40 percent of their revenues currently come from programmatic – an increase from 16 percent of publishers surveyed in 2014. Meanwhile, two-thirds of publishers (66 percent) expect more than 20 percent of revenue to come from programmatic over the next 12 months, compared to just 42 percent of publishers last year.
Programmatic inventory is expected to increase substantially as well. More than three quarters of publishers (77 percent) expect to sell more than 20 percent of their inventory programmatically in the next 12 months, and nearly half (46 percent) expect to sell more than 40 percent programmatically.
"Programmatic is no longer just a way to sell remnant inventory – it is proving to be an effective monetization method for publishers as well," said Catherine Oddenino, Analyst at AdExchanger Research and author of the report. "As we look toward the future, we will finally see revenues start to catch up with inventory."
Nevertheless, programmatic selling has its hurdles. Publishers continue to increase the number of technologies they use even though they cite "vendor complexity" as their biggest challenge as they look toward 2016. Also, while publishers are budgeting for increased inventory and revenue for desktop display, they face obstacles selling their mobile inventory programmatically. In fact, the shift to mobile is suppressing growth as CPMs for mobile programmatic lag behind.
According to the survey, inventory quality is a point of contention between publishers, marketers and agencies. Only 11 percent of publishers currently view "quality of inventory" as their biggest challenge – a decrease from 19 percent last year. Marketers and agencies disagree with almost a quarter of marketers and 27 percent of agency employees selecting inventory quality issues as their biggest challenge facing programmatic.
About the Study:
AdExchanger Research fielded the "State of Programmatic Selling 2015" survey online in March 2015. It includes answers from 812 total respondents including 90 marketers, 134 agency representatives, 187 publisher representatives and 401 technology provider representatives. AdExchanger Research also conducted 10 interviews with publishers for the making of this report. The report is available for purchase on AdExchanger Research by visiting www.adexchangerresearch.com.
Founded in 2008, AdExchanger is an integrated media company – which includes research and publishing – devoted to the data-driven, digital marketing space. In addition, the company produces the leading conference in programmatic media, PROGRAMMATIC I/O; Industry Preview, which provides an exclusive look at the year ahead in digital marketing technology; Omni.Digital, which looks at challenges and solutions for marketers as they look to address consumer across all channels; and Clean Ads I/O, a conference focused on transparency in advertising.
About AdExchanger Research
AdExchanger Research was formed in 2013 by AdExchanger to provide thoughtful analysis on the digital media and marketing technology ecosystem. As a complement to AdExchanger's editorial and publishing arm, our research practice is intended to provide ongoing guidance, advice, support and interpretation of the dynamic digital landscape. Visit AdExchanger Research at www.adexchangerresearch.com and follow us on Twitter at @adexchangerrsch.
SOURCE AdExchanger Research