CPM Gains Share Of Digital Ad Market, Performance Wanes

While the Interactive Advertising Bureau and PwC still don’t break programmatic out as a share of total digital ad spending, the release of 2014 data from their Internet Advertising Report shows the total pie is growing dramatically, including the programmatic marketplace.

Total spending in the U.S. set a new record, climbing to $49.5 billion -- a 16% jump over 2013. And the year ended on an uptick, with the fourth quarter rising 17% over the same quarter in 2013.

While it’s impossible to look at the role that public and private programmatic markets are having on overall growth, the data does show a stabilization of revenue models neatly split two-thirds for “performance,” and one-third for CPMs.

Actually, CPMs nudged a percentage point to a 33% share of total revenues, which likely reflects a greater contribution from biddable marketplaces. That’s up from a recent low of a 31% share for CPMs in 2011.

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