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Bad news for publishers: Over half of marketers expect a decline in programmatic ad spending in 2023

The news: More than one in two marketers (53%) expect programmatic advertising expenditures will fall in the coming year, owing in part to increased investments in walled gardens.

  • Ultimately, 15% expect to reduce programmatic spending by more than 50%, and an additional 20% expect to cut it by 26% to 50%, according to a survey commissioned by identity platform Lotame and conducted by PureSpectrum.
  • Only one in three marketers indicate they intend to increase programmatic spending next year.
  • The survey included over 1,400 industry professionals, marketers, and publishers in the US, UK, Australia, Colombia, India, Mexico, and Singapore.

Post-cookie readiness: With regard to post-cookie identity resolution, many marketers appear to be playing the field for the time being. In a comparative 2021 study, three-quarters of marketers indicated they planned to try new or more partners; in Lotame’s latest findings, that number has actually increased, with advertisers investigating a number of identity possibilities.

  • Marketers cited a favorable experience with identification solutions so far. Thirty-five percent identified more efficient inventory purchasing as a benefit, and 26% believe they’ve secured higher quality real estate in the process.

Why it matters: Identity solutions are increasingly seen as a priority by marketers and publishers alike. In fact, the Lotame study found that marketers who see selection of identity solutions as a “most urgent” priority jumped from 18% to 37% in just one year; for publishers, that jump was 14% to 35%.

  • Upward of one-third (37%) of marketers said they intend to increase their investment in walled gardens in the coming year. That’s up from 18% in February 2021 and suggests a rising preference for walled gardens, which is potentially discouraging news to publishers’ ears.