Turning fresh attention to programmatic direct as it applies to in-app inventory.
Programmatic technology continues to expand its footprint in the digital marketplace, there’s no doubt about it. By 2019, eMarketer predicts, 89% of mobile digital display will be purchased via programmatic.
Tracking alongside this growth is the expansion of programmatic direct. As it splits the difference between real-time bidding and totally manual ad-buy systems, programmatic direct allows publishers and advertisers to create specific agreements around how the process will work. It guarantees protected inventory and premium placements without requiring much if anything in the way of hands-on operation. It’s the best of both worlds.
And while we’ve been hearing about it for a long time, this year we’re starting to see results related to the kind of uptake we long hoped for: recent studies forecast programmatic direct to command $32.6 billion in ad spend in 2017. Meanwhile, open exchanges look like they’re losing buy-in: Q4 last year, programmatic spend in the open exchanges dipped 10 percentage points. Clearly, advertisers don’t want the risks associated with the low-quality inventory that exchanges leverage.
But here’s the challenge: much of programmatic direct’s growth has centered on mobile-web and display. It’s time to turn some fresh attention to programmatic direct as it applies to in-app inventory — the final piece of the puzzle our industry needs to lock in place.
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Kevin Arrix is Chief Revenue Officer, Verve.
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