Only 36 cents of every dollar entering DSP reaches consumers effectively; Infillion to relaunch MediaMath by end of year; Dentsu predicts 4.6% ad spend increase for 2024

by Aimee Newell Tarín on 7th Dec 2023 in News

On today’s ExchangeWire digest: Only 36 cents of every dollar entering DSP reaches consumers effectively; Infillion to relaunch MediaMath by end of year; Dentsu predicts 4.6% ad spend increase for 2024…

Only 36 cents of every dollar entering DSP reaches consumers effectively

According to ANA’s latest research, only 36 cents of every dollar that enters a DSP effectively reaches the consumer. Transparency was the focus of the study investigating the programmatic media supply chain, in which 21 marketers and 12 supply chain companies participated. The total ad spend of the study was USD $123m ($98m), with 35.5 billion impressions. Transaction costs accounted for 29% of each ad dollar, while loss of media productivity costs accounted for 35%. Following this, the key conclusion of the study is that there is around USD $22bn (£17bn) in efficiency gains available to the client-side marketer community.

Infillion to relaunch MediaMath by end of year

Infillion is preparing to relaunch fallen ad tech firm MediaMath, following its bankruptcy just over three months ago. MediaMath had once been valued at almost USD $1bn (£794m), battling against the likes of Google and The Trade Desk. Currently, Infillion is on track to relaunch MediaMath’s demand-side platform and data management platform before the year draws to a close. Forty ex-MediaMath staffers have been hired, and former clients are testing the platform. Infillion also hopes to integrate MediaMath with its other assets, to allow companies to enhance their own advertising business using its tech.

Dentsu predicts 4.6% ad spend increase for 2024

In its latest ad spend forecast, Dentsu predicts global advertising to increase by 4.6% to USD $753bn (£598bn) in 2024. Next year’s ad spend growth is expected to remain above 4% for each quarter, with an anticipated peak during Q3, due to major sports events such as the Paris Olympics and Paralympics. This is a downgrade from the previous forecast of 4.7%, but remains ahead of the 2.7% predicted year-on-year growth in 2023.