Global Programmatic Ad Pricing Trends: Social Rising

Turn-Global-Programmatic-Ad-Pricing-Trends-Feb2014Programmatic advertising spending is on the rise around the world, and with that increased spending comes more competition, in many cases driving higher prices, per data included in a new report [download page] from Turn. The study indicates that all channels – display, social, video and mobile – became more competitive over the past year, with social eCPMs rising most rapidly.

According to Turn – which based its findings on data from its advertising platform, which sees more than 1.3 million programmatic advertising impressions per second – social eCPM’s were 24% higher in January 2014 than they were a year earlier. Display eCPMs were up 19% year-over-year, while video eCPMs grew a comparatively smaller 4%. Interestingly, while competition in the mobile space grew, increased supply more than offset the greater competition, with mobile eCPMs actually down 40% year-over-year in January. (Though this report didn’t reveal actual eCPM averages, previous reports such as this one can be referenced for benchmarks.)

Currently, the most competitive channel is display, followed by social, video and mobile, according to the report. Not surprisingly, trends differ around the world: in Europe, for example, mobile is more competitive than video. Those differences extend to pricing, too: in the Americas, price increases grew most quickly for social, while in Europe, video pricing grew fastest.

Turning to various industry categories, the study indicates that some programmatic ad verticals are quickly becoming more competitive, led by:

  • Arts, entertainment and hobbies (60% more competitive year-over-year in January);
  • Travel (57% more competitive);
  • Electronics and computers (56% more competitive);
  • Financial services (52% more competitive); and
  • Telecom (51% more competitive).

By contrast, sports and recreation became 121% less competitive over the course of the year, with jewelry, office products, autos and real estate also becoming less competitive, though to a lesser extent.

About the Data: The Turn marketing software and analytics platform makes nearly 100 billion advertising decisions and analyzes more than 1.5 billion customer attributes on a daily basis. The robust architecture provides instant access to over 2 trillion display, mobile, social, and video advertising impressions every month, with response times under 10 milliseconds.

Data for the Advertising Intelligence Index is based on activity on the Turn platform from January 2013 through January 2014.