Commentary

Study: Marketers Expect Increased Spending in Private Marketplaces

When the GDPR went into effect a month and a half ago, publishers and marketers were in a panic. Since then, the effect appears much milder than anticipated. But that doesn’t mean the industry isn’t reassessing how it buys and sells advertising across digital brands. 

new study, “Programmatic in the Era of Transparency,” from Trusted Media Brands Insights Lab, part of the media company home to Taste of HomeReader’s Digest and The Family Handyman, shows how the GDPR and other industry trends are impacting the field.

Namely, marketers are expected to increase their spending in private marketplaces in the future. 

The study found that 36% of advertisers expect the use of private marketplaces and programmatic guaranteed to increase as the U.S. implements the GDPR. Increased concerns about consumer privacy and data protection have led 55% of advertisers to become more inclined to use private marketplaces and programmatic guaranteed rather than open exchanges. 

The study also showed that 44% of advertisers believed more would move away from the use of cookies and toward first-party data as a result of GDPR implementation. 

Approximately 300 U.S. digital media decision makers from the Advertiser Perceptions Omnibus Panel took part in the survey in May.

Beyond the effects of the GDPR, those surveyed reported their digital programmatic ad spending was split evenly: 31% going to private marketplaces; 33% going to programmatic guaranteed; and 34% to open exchanges. 

However, they don’t think those numbers will remain going forward.

Some 31% of marketers believe private marketplaces will see a spend increase, while 29% believe programmatic guaranteed will see an increase as well. Only 21% believed open exchange would see an increase. 

Advertisers are still most concerned with their ROI, with 62% surveyed listing that as a top priority. Several areas have gained priority over ad fraud and ad blocking, including viewability, which 59% said was a priority, brand safety, with 58%, and programmatic transparency with 44%. 

Among the reasons for relying more heavily on private marketplaces and programmatic guaranteed, advertisers expressed an ability to deliver a better ROI, access to premium inventory and brand-safe environments. 

Zach Friedman, Trusted Media Brands’ Chief Revenue Officer, stated: “With the recent industry focus on consumer privacy and data protection, brand-safe environments are proving to be increasingly important for marketers in their ad spend decision-making.” 

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