Global Data Market News - June 6th, 2024

The State of Ad Tech In 2024

Ad tech is experiencing significant adoption and integration by major companies such as Amazon, Netflix, and Disney. While these developments may not be entirely new, they represent a critical mass for these companies.?

The focus of ad tech seems to be on retail media, with an emphasis on better targeting, packaging, and analytics. This raises the question of whether ad tech is still innovating or simply focused on broader adoption of existing technology.

Source: MediaPost

The Debate Over Premium Content Is Holding Back Programmatic CTV Growth

Publishers aim to maintain control over their "premium" content by limiting biddable supply and favoring programmatic guaranteed deals. However, agencies seek more programmatic access to CTV inventory for better scale, targeting, and cost-effectiveness.?

The definition of "premium content" is a point of contention, with agencies emphasizing audience reach and impact over production quality, while buyers advocate for biddable auctions to fill inventory gaps and reach desired audiences at competitive prices.

Source: AdExchanger

Nielsen Annual Marketing Report 2024

72% of global marketers anticipate increased ad budgets despite inflation and economic uncertainties. However, there is a misalignment between marketers' top KPIs, which are long-term and full-funnel ROI, and their prioritization of performance marketing over brand-building initiatives.?

This shift toward performance marketing may not fully support the desired long-term goals. Additionally, the report emphasizes that investment in brand-building marketing can drive revenue growth, and the cessation of advertising efforts can lead to brand erosion and revenue loss.

Resource: Nielsen

3 trends from Programmatic I/O: MFA, commerce media, and ad buying

Programmatic advertising will account for 91.3% of US digital display ad spend this year, or a total of $157.35 billion, per our December 2023 forecast.

The challenges concern:

1. Quality and Safety: Low-quality websites,? content quality, consumer engagement, raise issues about brand safety, ad placement uncertainty, and limited viewability.
2. Evolution of Retail Media: The transformation of retail media into commerce media, with the emergence of ad networks by companies like JPMorgan Chase and PayPal, presents challenges related to standardization, measurement metrics, and integration of supply side platforms (SSPs) and demand side platforms (DSPs) into the retail media landscape.
3. Integration Challenges: Difficulties integrating media networks and tech stacks pose issues for commerce media decision-makers, impacting streamlined ad buying and consumer targeting across the open web.

Source: eMarketer

Cookie deprecation won’t change advertisers’ preferred transaction methods

The effects of third-party cookie deprecation on programmatic ad spending patterns, emphasizes the continued dominance of programmatic direct as the preferred transaction method and the leading role of mobile devices. The diminishing popularity of open auctions in favor of private marketplaces and closed ecosystems, driven by the growing focus on first-party data utilization in programmatic advertising.

Source: eMarketer

Global CTV Ad Forecast: Up 26% In 2024

Global connected TV (CTV) advertising is set to surpass social and search advertising, with a projected 26% increase to $27.5 billion this year.?

Guggenheim Securities predicts that programmatic-platform revenue will soon exceed direct advertising sales, reaching $15.7 billion in two years, while overall CTV advertising revenue worldwide will grow to $40.3 billion in the same period.

Source: MediaPost