A study from Operative of more than 300 advertising and publishing executives in the U.S. found that advertisers might be embracing automated buying, but publishers are feeling the strain as the actual work involved in "automation" falls on their shoulders.
Half of the publishers surveyed reported they make less than 10% of their digital ad revenue from programmatic. Even though more money is being spent programmatically, it's going to middlemen and platforms, not premium publishers.
Publishers cited low CPMs as their biggest complaint about programmatic. Half the publishers said direct sells for at least 50% more than programmatic. Google and Facebook, not surprisingly, are sucking up a lot of the revenue.
Publishers cited conditional metrics and lack of sales training as the main problems facing their programmatic business.
The “Programmatic Is Here To Stay” study suggested three things publishers need to focus on to increase programmatic revenue, improve overall company yield, and bring programmatic into the heart of the ad sales organization:
*Publishers transact in a way that buyers want to buy.
*Make the programmatic process more efficient.
*Focus on improving the predictability of programmatic channels.
The survey was taken by MediaPost subscribers, as well as Operative clients and newsletter subscribers.