Are Publishers Missing Out on Audience Extension? - eMarketer

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Are Publishers Missing Out on Audience Extension?

A change in platform usage may be in order

October 9, 2015

More than 70% of advertisers worldwide are at least somewhat likely to include audience extension in ad campaigns, according to August 2015 research from Digiday and Rocket Fuel. But audience extension does not appear equally important on the publisher side of the equation.

Likelihood that Advertisers Worldwide Will Include Audience Extension as Part of Their Campaigns, Aug 2015 (% of respondents)

According to the Digiday and Rocketfuel polling, 47% of advertisers devote somewhere between 1% and 25% of their advertising spending to audience extension. Nine percent spend 26% to 50%, and 14% spend 51% to 75%.

However, only 47% of publishers derive revenue from plans involving audience extension, and of those that do do, the majority only realize 1% to 20% of their total revenue from the channel. And given that 94% of advertisers spend money on audience extension, it's notable that 53% of publishers gain no revenue from it.

Platforms that Publishers Worldwide Currently Use for Audience Extension, 2013-2015 (% of respondents)

All three of the most common platforms used—in-house networks, integration with ad servers, and third-party ad networks—display a shared pattern: decline. While third-party ad networks have declined most rapidly, from 57% used in 2013 to 25% in 2015, in-house networks have also dipped from 39% to 31%, and ad server integration has shrunk from 38% to 31%.

And 2016 provides an even bleaker outlook for these platforms: Only 18% of respondents said they would use an in-house network.

The report pointed out that publisher abandonment of these platforms could lead to a window for greater adoption of demand-side platforms and data management platforms, both of which could help publishers realize more of the ad dollars going into audience extension.

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