Why Publishers Invest in Programmatic Ads Despite Budget and Data Challenges

Publishers are continuing to invest in programmatic ads despite budget and data challenges by focusing on building their programmatic business. According to Digiday+ Research, 53% of publishers will put a large focus on programmatic ads. This is a notable increase from six months before, when only 41% of publisher pros said they would put a large or very large focus on building their programmatic business. However, programmatic buyers face challenges such as clients not willing to pay enough for ad tech tools, staff time, and commissions needed for programmatic buying.

The Trade Desk's 'premium internet' concept has caused concern among publishers. The Trade Desk CEO Jeff Green described the 'premium internet' as characterized by high-quality ad inventory supported by first-party data and user consent, as opposed to the open web plagued by poorly targeted ads and fraud. Publishers fear that The Trade Desk may withdraw ad dollars from many of them. To target, track, and optimize programmatic campaigns without third-party cookies, The Trade Desk needs publishers to have a lot of email addresses for their third-party ID called UID 2.0. However, many publishers struggle to collect enough emails and are hesitant to support a third-party ID that could undermine their proprietary data efforts.

The 'Fortnite' ecosystem is experiencing its YouTube moment due to the introduction of a new in-game economy by Epic Games, which gives in-game creators a 40% cut of all 'Fortnite' net revenue. This update has sparked significant interest from digital creators, who have brought their communities and marketing dollars from brands looking to reach them. Observers see parallels to the early days of YouTube's creator economy, which developed organically over the years. According to Digiday+ Research surveys, brands are increasing their marketing spend on YouTube, indicating a similar potential growth trajectory for 'Fortnite'.

TikTok's Change Makers Program is the platform's first six-month social impact program involving a group of 50 creators and nonprofits globally. The goal is to promote social change using the hashtag #TikTokforGood, with a $1 million donation to 30 global and local organizations to support their work. This initiative aims to show TikTok's investment in social causes and continue growing its influencer marketing. Grace Murray Vazquez, vp of strategy at influencer agency Fohr, mentioned that this approach is a statement about TikTok's global and cultural value, countering perceptions in the U.S. that TikTok is a hotbed of misinformation and a security threat.

Brands and agencies face different challenges on YouTube. According to Digiday+ Research, the highest percentage of brand and retailer pros (24%) said the cost of media is their biggest challenge on YouTube. Meanwhile, the highest percentage of agency pros (24%) said the lack of budget is their biggest challenge on the platform. Despite these challenges, more brands than agencies use YouTube, with 67% of brand and retailer pros using the platform as of Q1 2024, compared to 59% of agency pros.