Programmatic advertising in the US declined 12 per cent in the first quarter of 2017, compared to the same period a year ago, while native advertising is up 74 per cent over the same period.
The figures are contained in a report from MediaRadar, which tracked more than 265,000 advertisers across digital and traditional channels.
The report, Consumer Advertising – Maximising Impact, suggests brand safety concerns surrounding programmatic are the reason for the category’s decline. According to MediaRadar, the number of programmatic advertisers declined from 45,000 in the first quarter of 2016 to 39,400 in the first quarter of 2017.
In February this year it was revealed some of the worlds largest brands were unwittingly funding Islamic extremism and white supremacist groups through YouTube advertisements. In response, advertisers began boycotting YouTube. The issue, stemming from Google’s programmatic ad trading, has kept the focus on brand safety throughout 2017.
On the other hand, high CPM ad placements like native and mobile (up 8 per cent) are on the rise, according to MediaRadar.
Demand for native has tripled since January 2015 and the top product categories in native advertising are entertainment, professional service, financial and real estate and technology.
On the back of the rise, the report poses the question, is there a native bubble? Other headline issues on the horizon for the industry include how brand safety concerns will affect buying strategies, the proliferation of vertical video and the evolution of programmatic advertising.