A recent study conducted by Digiday+ has highlighted the evolving landscape of programmatic advertising, especially with regards to its impact on publishers' revenue streams throughout 2024 and into the coming year. The research involved surveys of nearly 50 professionals working within the publishing industry, gathering insights during the first and third quarters of the year.
As 2024 is set to conclude, the data reveals that an increasing number of publishers continue to derive revenue from programmatic ads. Notably, 86% of surveyed publisher professionals in Q3 reported earning at least a minimal portion of their revenue from programmatic sources, a slight rise from 82% earlier in the year. Additionally, a modest uptick was observed in the number of publishers receiving a larger share of their revenue from programmatic ads, with 36% of respondents indicating a significant or substantial contribution, compared to 33% in Q1.
Despite this favourable trend, there has been an increase in the proportion of publishers who report earning only minimal revenue from programmatic ads. The number of publisher professionals stating that a very small or small portion of their revenue is derived from programmatic has climbed to 25% in Q3, up from 17% at the beginning of the year. Concurrently, the focus on expanding programmatic ad offerings appears to be diminishing. Just 47% of publisher pros indicated that they would prioritise growing their programmatic business significantly over the next six months, down from 53% in Q1. Meanwhile, interest in maintaining only a minor focus on this area has risen slightly, with 16% expressing a minimal focus — a notable increase from the 7% reported in Q1.
Despite these shifts, a substantial majority of publishers still plan to allocate resources towards enhancing their programmatic advertising capabilities in the near future. As many as 84% indicated they would at least maintain a minimal investment in this sector over the upcoming months, rising from 82% earlier in the year.
The analysis also sheds light on the distribution of revenue between direct-sold programmatic ads and open market programmatic ads. Notably, the proportion of publishers receiving any revenue from direct-sold programmatic ads has increased significantly in 2024, with 90% reporting some engagement in Q3, up from 80% in Q1. Similarly, the open market remains a vital revenue source, with 92% of respondents affirming they received revenue from this avenue by the third quarter.
Interestingly, the dynamics between these two sources have shifted. While the open market still accounts for a larger portion of total programmatic revenue — with 49% of publishers indicating that it generates a significant amount — direct-sold programmatic ads have shown considerable growth. In Q3, 30% of publishers claimed that direct-sold ads represented a large or very large portion of their programmatic income, up from just 17% in Q1. Conversely, the share of revenue coming from open market programmatic ads has seen a decline from 54% in Q1 to 49% in Q3.
This trend towards increased reliance on direct-sold programmatic ads could signal a strategic pivot for publishers as they adapt to the fluctuating market dynamics ahead of 2025, marking a potentially significant shift in business practices within the industry.
Source: Noah Wire Services