Australia trading more ad inventory through programmatic than US says new data provider

PathmaticsAustralian advertisers are buying nearly half of all digital advertising inventory through programmatic services, data from the new Nielsen and US-based Pathmatics alliance has revealed.

Nielsen and Pathmatics, a US company which provides display and mobile data to brands, agencies, publishers and adtech providers, launched their partnership last week which will deliver device-level insights into Australia’s digital ad market.

The digital spend data is collected using Pathmatics’ Pathsource technology which captures advertising activity on over 1,800 websites visited by Australian users and then married with Nielsen’s ad spend database and classified into over 1,000 advertiser categories. Pathmatics will also provide unique data on the programmatic market and identify campaigns bought directly from a publisher or through an ad exchange.



Monique Perry, head of Nielsen’s media industry group, told Mumbrella: “What we’re hearing from our clients is the excitement about the Pathmatics starter – it’s the creative advertisers have out there, it’s where they’re advertising, how they bought the advertising, all is an easy to use UI. Then we feed all of that information into our advertising expenditure measurement product which is now going to give us really strong coverage of digital ad spend.

“That’s about having the granularity of data that people need. It’s not just about a topline market number – it’s about understanding by advertiser and by product what they spend across media and now having the granularity of digital by device.”

Perry said the Pathmatics brings transparency to the market, of which the programmatic data is providing to market.

“Advertisers can see how and where they’re ad dollars are going,” she said. “It’s offering those two cornerstones of the partnership which is independency and transparency.”

The Nielsen and Pathmatics alliance has seen the two companies contrast programatic activity in Australia and in the US across quarter three of this year, with ads across desktop, mobile and tablet all recording a higher share of programmatic activity than the equivalent devices in the US.

Almost half (46 per cent) of all ads on local desktops are bought via programmatic services compared to 35 per cent in the US with Australian advertisers leveraging mobile devices to invest in ad campaigns also heavily reliant on using automated transactions.Nielsen-Pathmatics data

“The Australian marketplace is one of the most sophisticated in the world. We embrace technology, we’re early adopters. It doesn’t surprise me that we come up strongly in that space,” said Perry.

According to the data, 40 per cent of mobile and 48 per cent of tablet impressions are now traded programmatically compared to 33 per cent and 39 per cent respectively in the US.

However, the majority of video inventory continues to be traded directly, with 51 per cent of local video inventory traded directly. However the US continues to rank higher, with 74 per cent of its video inventory traded directly.

Gabe Gottlieb, Pathmatics CEO, said: “In the US, they’re basically dying to buy video and there’s real supply and demand where they have much more demand to run these spots then there is quality content to run them against.

“That’s why the publishers are rating so high and media companies realise they have all the power. If you have the power you sell direct for a high value.”

Data produced from the Nielsen-Pathmatics alliance is available to Nielsen clients.

Miranda Ward


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