Home Agencies Analyst: Trading Desks In Pole Position As Programmatic Grabs One-Fifth Of Non-Search Spend

Analyst: Trading Desks In Pole Position As Programmatic Grabs One-Fifth Of Non-Search Spend

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pivotal-brian“Trading desks, which include WPP’s Xaxis, Publicis’ Audience on Demand, Omnicom’s Accuen and Interpublic’s Cadreon, probably deployed $2 billion of online spending in the US last year, up from around $1bn in 2012 and may spend up to $3bn in 2013. This represents a substantial change in the context of a market which saw $18 billion in non-search spending during 2012.”

“…The marginal cost of buying incremental impressions is substantially less than it is with the legacy process. Overall, we think that whereas RFP-based buys might consume 10% of spending for agency fees, trading desks might consume closer to 2-5%. In the context of how large marketers make decisions, these fee differences are no small matter.”

-Brian Wieser, Pivotal Research analyst, in a report this morning.

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