New data: adtech tax tops $11bn, one-third of working media

Industry Contributor 12 Aug 2019 - 2 min read

New data: adtech tax tops $11bn, one-third of working media

By Paul McIntyre - Executive Editor

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Nearly one-third of US advertiser spend on programmatic display ads goes to tech and software intermediaries before publishers receive the rest, according to new estimates from eMarketer.

Key points

Non-social programmatic display spending in US is split this way: $24bn to publishers, $11.65bn to adtech fees
The net take of programmatic fees continues to rise because marketers continue to spend money on non-social programmatic display ads
But programmatic fees as a share of the total have decreased in the past three years.
Increased competition means programmatic service providers have been more transparent about fees; advertisers are doing more to optimise their supply chains and; private marketplaces and guaranteed deals make up a larger share of programmatic display spending

eMarketer's new forecasts are not as horrific as some but there's still a huge rump that media owners and publishers are missing out on. It's precisely what the ACCC wants to unpack with its proposed inquiry into adtech services. The ACCC outlined a detailed case for the probe, including an opaque supply chain that the regulator says makes it hard for advertisers to figure out where their money has gone.