According to Technorati’s “State Of The Industry: The State Of Programmatic Partnerships” survey, in conjunction with Digiday, 45.5% of publishers are frustrated
by programmatic demand partners not able to compete with each other on each impression.
In the survey of over 600 buy-and sell-side professionals, 49% of publishers say they
use passbacks and floor prices to maximize yield of programmatic demand solutions, giving each partner in a series a chance at an impression before moving it along to the next partner if it is not
purchased.
Shani Higgins, Technorati’s CEO, says “… when sequential auctions or manually estimating bids… are the only options for a
publisher… buy and sell sides suffer from lack of true competition and access… “
While 64.71% of publishers and buyers use just 1 to 5 programmatic
partners, 29% of buyers and 27% of sellers use more than 6 programmatic partners. “… the fragmentation of demand puts publishers in the untenable position of baring the costs in workhours
and tech stacks for each separate relationship… ” says Higgins.
Biggest Challenges Facing Publishers Working With Programmatic Demand Solutions
- Not being able to have demand partners compete with each other on each impression 45.5%
- Daisy Chaining or Waterfalling partners is inefficient and not as effective as it
could be 43.4%
- Not having my own internal developers with time/resources/ expertise to support my needs 44.4%
- Not having the technology and tools that
address my needs 43.4%
The survey is part of a “report card” about how buyers and sellers regard one another in the programmatic space.
Programmatic (mainly open marketplace) buying is now claiming the bulk of digital budgets, averaging about 46% of spending. Additional highlights from the survey include:
Publishers say the difficulty of dealing with multiple programmatic demand platforms is felt more by:
- Publishers 57.80%
- Both equally
34.86%
- Buyers 7.34%
Publishers say the biggest role in keeping us from integrating more programmatic demand solutions
is:
- Time or effort to technically integrate another system 63.13%
- Time or effort to manage each relationship 56.57%
- Time or
effort to manage ad quality 46.97%
- Loss of impressions from chaining more partners 39.90%
Buyers say this is what has
prevented us from integrating more programmatic buying tools:
- Time or effort to integrate 55.09%
- Time or effort to manage each relationship
49.10%
- All of the inventory is overlapping 41.32%
- Time or effort to manage inventory quality 38.92%
According to publishers, these aspects of our programmatic demand solutions in most need of improvement are:
- CPM 46.78%
- Fill rate
42.49%
- Total revenue 35.62%
- Ad quality 34.76%
- Partner support 12.88%
Additional
information from Technorati may be found here.