One-third of major digital advertisers reduced programmatic ad spend in 2018
MediaRadar, a leading advertising intelligence and sales enablement platform, released an analysis yesterday of the top 10 brands exhibiting “brand safe behavior.” Comparing 2018 to 2017, these 10 brands experienced a significant decrease in programmatic digital spend, while increasing direct digital spend considerably.
“Programmatic has been a bit of a brand safety risk for a number of advertisers,” said Todd Krizelman, CEO and Co-Founder of MediaRadar. “In 2018, we saw some big spenders cut programmatic ad investments and ramp up direct dramatically. This ultimately gave advertisers greater control and transparency over where their ads were placed.”
The top 10 companies that cut programmatic in favor of direct were:
“Walmart, Nestle, Kellogg — these are major advertisers and all of them withdrew programmatic dollars, shifting money towards direct, instead,” said Krizelman.
According to MediaRadar’s data, approximately one-third of major digital advertisers – companies that spent at least $1 million on both direct and programmatic placements in 2017 and 2018 – reduced their programmatic ad spend year-over-year (YoY) in 2018, while simultaneously increasing their spend on direct placements YoY.
Some categories were more active in moving spend to direct placements, while others continued to increase spending on programmatic ads.
- Increased Direct Buys: The toiletries and cosmetics industry grew its direct placement spend the most(by 126%) and cut programmatic spend by 21% YoY. Children’s brands’ direct placement spend also jumped 121% and programmatic spend decreased by nearly one-quarter (22%) YoY. Finally, automotive companies increased direct placement spend by 54% and reduced programmatic spend YoY by 31%.
- Increased Programmatic: The athletics industry increased programmatic spend YoY by 70%, followed by professional services with 45% and the financial and real estate industries by 27%, respectively.
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