Demand-side platforms (DSPs) look set to account for $100 million of trading through agency desks this year, according to SMI data. It could be much more.
Agency bookings from July 2012 to February 2013 show DSPs racked up $40.5 million. That compares to $8.9 million for the same period a year earlier, or growth of 357%.
Group M head of trading Danny Bass said that figure was not surprising and that the improving liquidity in exchanges, with increasing levels of better quality inventory being thrown in by publishers.
“It's no longer the long tail that they couldn't sell. It's good inventory … and compared to where DSPs were even a year ago, now they are all good. So the market will continue to grow.”
Bass said that the industry was becoming a two party state – the high end integrated inventory, and everything else, “which the big four publishers have acknowledged [with their moves towards a private network]”.
He said that programmatic trading could account for at least half of the market, “possibly three quarters” at some stage. That would equate to a a market worth well over billion dollars. “The market will decide. It all depends on the liquidity of inventory in the exchanges. As that increases, [DSPs share] increases.”
However, that was not to the detriment of traditional media, said Bass. “It's just a moving of digital dollars. It's natural growth.”
Bass argued that there was “still life in the traditional sales model for some time” but that the end was nigh for the “middle tier of digital CPM bookings.”
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.
Have something to say? Send us your comments using the form below or contact the writer at brendancoyne@yaffa.com.au
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.