Ad Tech Companies Reap Bulk of Programmatic Payouts

Share this content:

The techno-wizards who made automatic targeting possible took in 55% of programmatic advertising revenues in 2014.

For ad tech, programmatic's a numbers game.
For ad tech, programmatic's a numbers game.

Ad tech companies that push all the buttons to place online ads for brands based on their rules and budgets take 55% of the fees associated with the process, leaving the remaining 45% for publishers. The prospects for ad platforms and exchanges to get even richer are rose, as $10 billion in ads were programmed buys last year, some 20% of the total Web ad revenues.

These statistics come from the Interactive Advertising Bureau's first “IAB Programmatic Revenue Report,” released today. The report verified that the majority (52%) of online display ads, which totaled $19.6 billion last year, were placed programatically.

Other key findings from the IAB study:

  • Though display banner ads made up some 80% of programmatic revenue, IAB predicts mobile and video formats will begin claiming larger chunks of budget and inventory.
  • Open auctions were involved in some 70% of programmatic buys last year, but shifts to other methods, such as private auctions and unreserved fixed rate, are on the rise.
  • Despite programmatic's expanding influence, no industry-wide definition of the term has been adopted.

“Sizing the programmatic market has proven both challenging and illuminating, as we learned more about how that sector moves ads and money,” said Sherrill Mane, SVP of research at IAB. “Once we garner deeper understanding of how things work and where standard definitions and best practices are needed, we will also gain insights into where greater opportunities exist for publishers and advertisers to capitalize on programmatic channels.”


close

Next Article in Marketing Automation

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above