Dive Brief:
- From Q4 of 2012 to Q2 of 2013, the use of real-time bidding—or programmatic advertising—from brands increased by 69%, according to a report from Index—a subsidiary of Casale Media.
- The CPM for real-time bidding is increasing by 11% from Q1 to Q2 of 2013.
- There is still some hesitation from publishers to embrace programmatic buying because of the fear it will hurt their direct sales.
Dive Insight:
While it is understandable that publishers would be a bit wary of real-time bidding because the margins on direct sales are bigger, the truth is this practice is here to stay. Publishers will have to adapt to what their advertising customers want and the numbers show they increasing want real-time bidding options. To keep direct sales afloat, publishers will have to find ways to increase the value of their premium direct-sale advertising offerings.