The marketplace for exchange-traded media has doubled in the past quarter and has grown 184% over the past year, according to the latest findings of a quarterly tracking study of the real-time media-buying marketplace by independent trading desk Accordant Media. The “Q1 Market Pulse” report found that RTB trading increased 98% since the fourth quarter of 2012. The volume of North American media impressions transacted via RTB auctions grew 85% over the fourth quarter of 2012, and 146% over the past year.
The increased trading volume is not coming without a total for the overall digital media marketplace. While programmatic trading is expanding fast, it is also pushing average costs of buying inventory down. According to Accordant, the average CPMs (cost-per-thousand) paid through auction-based buys declined 21% over the past year, and 21% since the fourth quarter of 2012, which Accordant noted is a “seasonally strong” holiday marketing period.
The data comes on the heels of Tuesday’s release of the IAB Internet Advertising Revenue Report, which showed that the greatest expansion of online advertising revenues is coming not from so-called “premium” display advertising publishers, but from biddable media sources such as Google, Facebook, and secondary premium transacted through programmatic exchanges.
The IAB report does not release data on pricing, but the Accordant data, which also includes some non-Internet forms of RTB, such as digital out-of-home, indicates the expanding supply of exchange-based impressions is putting a damper on average costs — at least for the time being.
“CPMs paid were at a 12-month low in January,” the Accordant report finds, noting “absorbing new volume before trending up in February and March.”
That said, Accordant predicts “several factors” are expected to “continue to firm up 2013 prices,” including an increase in the “number of programmatic buyers per auction, added focus on premium inventory, new upfront programmatic buying (non-RTB) and expanded inventory across video and mobile channels.”
In other words, demand is expected to begin catching up with supply over the next 12 months. On a positive note for the overall display advertising marketplace, the Accordant study also found that “ad placement transparency” — or data disclosing the “viewability” of ads served to users — improved “significantly,” growing to 41% of all impressions served during the first quarter of 2013, from only 32% in the fourth quarter of 2012.
Viewability has become a hot button for Madison Avenue and online publishers, and is quickly emerging as a best practice, if not an actual industry standard yet.
About Accordant Media
Accordant Media is an independent, real-time media-buying (RTB) and optimization specialist that makes audience targeting and biddable display media simpler and more effective for leading agencies and brand marketers. Accordant’s one-stop, turnkey service, helps marketers achieve targeted, efficient advertising in a repeatable and scalable manner across paid display, video, mobile and search media. In a new era of cross-channel, exchange-traded media, Accordant’s innovative custom audience segmentation engine, Audience Optics(TM) , exploits micro-segmentation, finely sculpted audience insights and dynamic inventory management to produce higher ROI and customer engagement/response rates. This is done with any non-PII data set, without restrictions, helping clients gain access to dynamic inventory sources and deliver more targeted, relevant messages with 100% transparency. Co-founded by digital agency execs Art Muldoon and Matt Greitzer, Accordant Media is based in New York City.
SOURCE Accordant Media
/Web site: http://www.accordantmedia.com