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Programmatic Ad Buying in Decline

Ad intelligence platform MediaRadar recently released its Consumer Advertising report which revealed that programmatic ad buying declined 12 percent in Q1 2017 versus the same time last year (Q1 2016). 

Media Radar indicated that just over 45,000 advertisers purchased ads programmatically in the first quarter of last year but in the first quarter of this year, that number dropped by 12 percent, down to 39,415. Likely reasons for the decrease, as any good ad industry watcher would be able to confirm, include concerns over fraud and correspondingly, brand safety. 

Despite these issues, most remain quite bullish on programmatic. A recent eMarketer forecast, for example, estimated that nearly four of every five U.S. digital display dollars will transact programmatically this year, amounting to $32.56 billion. 

It's not all bad news for the future of programmatic however. Media Radar found the number of high-CPM ad formats increasing, especially in mobile and native (which had the biggest gains). The number of native ad buyers, for example, rose 74 percent from Q1 2016 to Q1 2017, representing the biggest growth in buyers for any ad format. Demand for native has also been quite impressive, nearly tripling since January 2015, which logged fewer than 1,000 buyers (981) at the time and has since increased to almost 3,000 as of January 2017.

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