Investing in Ad Tech Industry

Investing.com — The ad tech industry is making strides in efficiency, with scaled players benefiting the most, according to insights from Macquarie on Friday.

The Association of National Advertisers' Programmatic Transparency Benchmark report highlights considerable improvements in the ad value chain. Compared to the previous year, a higher percentage of ad spend through Demand Side Platforms (DSPs) is now reaching ad sellers—43.9% compared to 36%.

This increase is attributed to a decline in made-for advertising (MFA) website purchases and a consolidation to fewer web domains and apps.

Additionally, the adoption of private marketplaces (PMPs) over open auctions has surged to 66% of the total, including connected TV (CTV), up from 41% a year earlier.

Including CTV in this year's study, which accounts for 28% of ad spending, reveals that DSPs are retaining a slightly larger share of the economics at 16.8%, while Supply Side Platforms (SSPs) keep 13%.

The report also indicates that average Cost Per Thousand Impressions (CPMs) in CTV are at $12.90, while PMP deals are at $15. This suggests that the controlled auction environment preferred by The Trade Desk (NASDAQ:TTD) and SSPs like Magnite and PubMatic can indeed command higher prices for publishers.

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