Programmatic Ad Buying Declines 12% in Q1 of 2017 vs. Q1 2016
What: In Q1 2017, the number of programmatic advertisers dropped substantially, falling 12% year-over-year, according to MediaRadar latest results of its “2016 Consumer Advertising Report".
Why it matters: 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. The number of print ad pages decreased 8% year-over-year to 107,698 pages, while native ad buyers stood the biggest growth in buyers for any ad format.
MediaRadar, a intelligence platform for ad sales teams, has just announced the results of its “2016 Consumer Advertising Report,” examining ad spend, ad formats, top advertisers, and more for both print and digital channels in 2016, as well as Q1 2017.
Programmatic buyers down 12%
According to MediaRadar data, 45,008 advertisers purchased ads programmatically in Q1 2016. In Q1 2017, however, the number of programmatic advertisers dropped substantially, falling 12% year-over-year. On the quarter, more than 5,000 fewer advertisers (39,415) bought programmatically.
“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,” said Todd Krizelman, CEO & Co-Founder of MediaRadar.
The number of native ad buyers rose 74% from Q1 2016 to Q1 2017, representing the biggest growth in buyers for any ad format
Print ad spend declined 6%
The number of print ad pages in Q1 2016 was 117,551. Compared to Q1 2017, the number of print ad pages has decreased 8% year-over-year to 107,698 pages. Similarly, estimated print ad spend has declined 6% from Q1 2016 to Q1 2017.
“There has been a noticeable drop in ad pages and spend from the start of 2016 to now,” said Krizelman. “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.”
Media Radar found the number of high-CPM ad formats increasing, especially in mobile and native. The number of native ad buyers rose 74% from Q1 2016 to Q1 2017, representing the biggest growth in buyers for any ad format. In addition, demand for native has nearly tripled since January 2015, which logged fewer than 1,000 buyers (981). In January 2017, there were almost 3,000 (2,882).
The top 10 categories in 2016 for native advertising were media and entertaining, professional services, financial and real estate, technology, wholesale, home, travel, apparel and accessories, food, and toiletries and cosmetics.
The top five native advertisers by ad placements in 2016 were Secco Squared, Answers Corp., NextAdvisor, Potential Investments, and JPMorgan Chase.
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