Technorati Finds Almost Half of Publishers Are Frustrated by Programmatic Demand Partners

Aug 31, 2015


Technorati, which provides publisher side solutions to bring parity to programmatic advertising, revealed that almost half of publishers (45.45 %) say they are frustrated by not being able to have demand partners compete with each other on each impression. As a result they are forced to use tactics they don't like to try and maximize yield. In a survey of over 600 buy- and sell-side professionals, almost half of publishers (49 %) say they use passbacks and floor prices to maximize yield of programmatic demand solutions, essentially "daisy-chaining" or waterfalling--the practice of giving each partner in a series a chance at an impression before moving it along to the next partner if it is not purchased. About the same percentage manually adjust ad serving rules based on estimated CPMs and fill and/or work with fixed-CPM partners.

When asked, "Which of the following are the biggest challenges you face working with programmatic demand solutions?" 45.45% of publishers said, "Not being able to have demand partners compete with each other on each impression" while 43.43% said, "Daisy Chaining or Waterfalling partners is inefficient and not as effective as I'd like it to be." And 44.44% said, "Not having my own internal developers with time/resources/ expertise to support my needs. While 43.43% answered, "Not having the technology and tools that address my needs."

While the majority (64.71%) of publishers (and buyers) use just 1 to 5 programmatic partners, a significant segment of both groups use more than six programmatic partners (29% for buyers and 27% for sellers).

The survey was conducted in conjunction with Digiday, from June 23 to July 10 and is part of a "report card" about how buyers and seller 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.