Is there a future for publishers and display ads?

As some eschew standard display and forge ahead selling super-expensive native advertising, others continue at scale through programmatic, hoping the slide in CPM will cease.

But can publishers realistically make it to a middle ground, one of powerful display advertising based on greater relevance and intent?

Econsultancy’s new report, Digital Publishing: Increasing Advertiser Value Through Data and Identity, in association with Signal, looks at this challenge (free download available here).

40 per cent see no revenue growth, with low CPM a function of volume

The new report includes data from a survey of 127 senior marketers with direct knowledge of ad ops at US companies with at least US$50m revenue.

As you can see from the chart below, 40 per cent of respondents reported stagnant or declining display ad revenue.

This is largely a problem of scale, with inventory of ads now oversized, even once viewability and ad fraud is accounted for.

Combined with the efficiency of programmatic buying, this scale erodes margins for all but the largest publishers.

Read the full article here

Source: Econsultancy

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