The Curious Case of Programmatic Advertising Revenue Fall in last 7 Months.

The last few months have remained very harsh for Supply Side SSPs as well as Demand Side DSPs. What is making the Publishers as well as Ad Tech Companies Anxious and Curious? Why the much expected and hopeful stability via Ad Revenue is not coming back to normal. Read the news from Forbes here .

During 2022 , we used to make comparative analysis of Pre-Covid and Post Covid revenue figures earned through Ads. The revenue source of Ads via Programmatic has always remained more than 70% in general. The Programmatic Advertising Revenue Fall in Last 7 Months has baffled many.

Global Recession and Fall of US Banks.

While the direct advertising rates have always remained on higher side dur to guaranteed impressions and Roadblocks , the charm of Programmatic Ads was still intact. Come 2022 March, we hear about fall of two large banks in US , Signature Bank and SVB Bank. Why these banks are important? Because many start up Ad Tech Companies like Roku had parked their money in these banks. The sudden fall disrupted the cash flow of these companies, which indirectly affected the Publishers Ad Revenues too.

With global recession and fall of Banks , things were not looking rosy , still Publishers and Ad Tech Companies waited for normalcy the Advertising Sector. From March Onwards the Programmatic Advertising Revenue fall was consistent and it has been reducing month on month to a much lower level than expected. I had also written an Article on Challenges on Opportunities of Programmatic ,which you can read here.

The views of Ad Tech Publishers.

I talked with my Ad Tech Friends and Companies who are in this since last 10 years to know the reason. They remain hopeful that things will change for good soon .They gave reasons such as fall of SPOs, Gloabl Ad Demand Outage , Advertisers preferring Open Bidding Less etc. It is just a phase of low Ad Demand, which will gather pace , once festival season kicks in. But festive season has always been the most demand peak season right? What’s new about it? I need practical reasons to digest the fall of revenue the Publishers are facing via Programmatic Ads .

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Practical reasons of Ad Revenue fall via Programmatic.

I will give some practical reasons behind the fall, which is mentioned in the points below:

1. Global Recession– Ad Demand via Advertisers in not picking up . In case of Direct Ads too there are not too many buyers who are willing to spend via Direct Ads, if not Programmatic.
2. The fall in SPOs- Many Big Ad Tech Companies have individual Supply Path Optimization with big Advertisers , which has fallen due to many reasons , such as free IPL streaming on Jio.
3. Big Advertisers Buying Ads directly through their own DV 360 Seat– Many Big Advertisers have opted for their own DV 360 Seat and their own team for bidding on Publishers inventory directly . It has reduced their revenue sharing cost and they are free to bid more conservatively.
4. Change in Campaign Types – From Impression , to CTR , to Clicks Guarantee, the Ad Industry main KPI has come to final Conversion Guarantee . Guaranteed Conversions is a tough nut to crack for Ad Tech Companies. Hence, when the supplier cant fulfill the buyer demand there will be less Ad Deals going through via Programmatic.
5. Ad Tech Companies Migrating to Direct Ads from Programmatic– Many Big Ad Tech Companies Such as Outbrain and Taboola are now shifting to Direct Ads from Programmatic to give guaranteed Ad slot impressions and Roadblocks .

These are some of the major issues which require a brainstorming by Publishers as well as Advertisers . It will be required in order to combat the fall of Ad Demand in Programmatic. Otherwise , the shift in Ads from Programmatic Channels remain inevitable.