"Scaled Advertising Technology Players Experiencing Efficiency Gains, Says Macquarie"

According to information shared by Macquarie on Friday, the advertising technology sector is showing progress in efficiency, with scaled players benefiting the most from this improvement. The National Association of Advertisers' Programmatic Transparency Comparison report highlighted significant advancements in the advertising value chain. Compared to last year, a higher percentage of advertising spending through Demand-Side Platforms (DSPs) is now reaching advertisers—43.9% compared to 36%.

This increase is attributed to a decline in web acquisitions for media for advertisement (MFA) and consolidation across fewer web spaces and applications. Additionally, the adoption of Private Marketplaces (PMPs) over auctions has increased its share within the total, rising from 41% to 66% year-over-year, including connected TV (CTV).

CTV, which accounts for 28% of advertising spending included in this year’s study, shows that DSPs hold a slightly larger portion of the economy at 16.8%, while Supply-Side Platforms (SSPs) maintain 13%. The report further indicates that the average Cost Per Mille (CPM) for CTV stands at $12.90, while for PMP deals, it is $15. This suggests that the controlled auction environment preferred by SSPs such as The Trade Desk (NASDAQ:TTD), Magnite, and PubMatic can actually command higher prices for publishers.