Private marketplaces to attract more ad spend than open exchanges next year

Private marketplaces have allowed advertisers to address issues such as ad fraud and brand safety by keeping the auction between single or small groups of publishers and select buyers.

By 2020, it is estimated that spending on real-time bidding transactions through private marketplaces will overtake spending in open exchanges for the first time.

According to data from eMarketer, US advertisers will spend $12.22 billion on open exchanges and $11. 56 billion in private marketplaces in 2019. By 2021, spending on private marketplaces will exceed $15.97 billion, whilst that on open exchanges will stand at $13.77 billion.

“Whereas programmatic was first thought to obviate the need for buyer-seller relationships, this trend indicates that one-to-one agreements and conversations are only increasing in importance—and it emphasizes that programmatic has become so much more than just open market, real-time buying,” eMarketer principal analyst Lauren Fisher wrote. “For publishers, this opens up new opportunities to identify programmatic advertisers ripe for bigger deals and commitments. And for buyers, this means greater emphasis on building stronger relationships.”

The change to private marketplaces is led by both buyers and sellers demanding more control over how ads are run across websites and the audience data used. As advertisers demand improved access to premium inventory, private marketplaces have flourished.

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