Research shows that programmatic growth is being fueled by the democratization of access to premium CTV for more advertisers.

FreeWheel, a global technology platform for the television advertising industry, has released its latest report titled “The State of Programmatic Independent Demand.” The report provides a comprehensive analysis of the burgeoning market segment of independent programmatic advertising, particularly focusing on premium video. It highlights the factors contributing to the rapid growth of this sector and offers insights into future opportunities.

According to the report, independent programmatic impressions in the Connected TV (CTV) market have seen a substantial 24% year-over-year increase. Several factors are driving this growth:

• Adoption of Multi-Publisher Programmatic Bundles: There has been a 119% increase in advertisers using multi-publisher bundles to target audiences across premium CTV platforms. These bundles allow advertisers to reach niche first-party audiences more effectively.
• Strong Uptake in Specific Verticals: Advertisers in the pharma, gaming, telecom, and retail sectors are increasingly embracing programmatic advertising. This trend is attributed to programmatic’s superior ability to demonstrate return on investment (ROI).

Katy Loria, Chief Revenue Officer at FreeWheel, emphasized the transformative growth within the independent market: “This growth is fueled by the increasing adoption of programmatic advertising by marketers, coupled with the expansion of premium CTV supply. Advertisers of all sizes now have powerful tools for measuring and attributing their premium video campaigns’ success, driving higher demand and better outcomes.”

The Role of Independent Demand

FreeWheel defines “independent demand” as ad buys originating from agencies and buying entities that are not owned by a holding company. The report is based on one of the largest datasets available, which includes aggregated advertising data collected through the FreeWheel platform specifically for the independent market.

Garrett Dale, Chief Partnership Officer and Co-Founder of Kepler Group, highlighted the importance of curated group deals: “Curated group deals have been integral in complementing publisher direct programmatic activations to expand reach of high-value audiences for brands, enabling Kepler to achieve and exceed client business goals from both brand awareness to performance objectives.”

Opportunities in Live Sports and Beyond

Looking ahead, the report identifies significant opportunities for the independent programmatic market, particularly in live sports inventory. This category is noted for its high viewership and event-like engagement, making it highly attractive to advertisers. However, the report also points out the complexities involved in programmatic activation for live sports due to the need for robust technical infrastructure to manage high viewership spikes.

Moe Chughtai, Global Head of Advanced TV at MiQ, commented on this potential: “The biggest events – NFL Playoffs, Olympics, March Madness – are all available for streaming, which offers a huge opportunity for programmatic advertising. If executed effectively, this reduces the investment barriers to entry for marketers and brings a new level of addressability and accountability to live sports.”

Additional Insights and Future Trends

The report also explores other opportunities for growth in the independent programmatic market, including:

• Transition of Large Advertiser Commitments to Programmatic: As more large advertisers move their commitments to programmatic platforms, there is potential for significant growth in this area.
• Unlocking Programmatic Political Spend: The report suggests that with appropriate controls on creative and placement, there is an opportunity to unlock substantial political advertising spend programmatically.

FreeWheel’s “The State of Programmatic Independent Demand” report underscores the dynamic growth and evolving opportunities within the independent programmatic advertising market. By leveraging advanced programmatic tools and strategies, advertisers can achieve better outcomes and capitalize on the expanding premium CTV supply.

As the market continues to grow, FreeWheel remains at the forefront, providing the insights and technology needed to navigate and succeed in this rapidly changing landscape.