Private marketplace spending surpasses open exchanges in 2020

Anne Freier | January 23, 2020

Mobile Advertising

Programmatic ad spending on private marketplaces (PMP) is going to surpass open exchange spending, according to estimates published by research firm eMarketer.

In PMPs, publishers enter private deals with ad buyers which has advantages for both parties such as better pricing and quality ad placements.

According to the forecast, PMPs will attract $12.34 billion in digital display ad spending compared to $11.81 billion on open exchanges. Combined real-time bidding will be worth $24.15 billion in 2020.

Aside from brand safety, other factors driving higher investment in PMPs include improved discovery of inventory and campaign planning. It’s now easier than ever before to transact key performance indicators and campaign metrics.

First and second-party data is now more important than ever before to buyers and sellers.

“As the cookie starts to go away and the shelf life is diminished, third-party data won’t be able to be used in as many places,” explained Ryan Fleisch, head of product marketing at Adobe Advertising Cloud. “We’re seeing clients really care about making the most of every impression that we’re serving because in certain cases, we might not have the same luxury of scale in the next 12 to 24 months that we’ve had in the past.”

However, the overall share of real-time bidding within programmatic is going to decline over the coming 24 months, whilst programmatic direct is noting continued growth thanks to social advertising and premium advertising formats such as audio, OTT and connected ads.