Traffic quality crackdown kicks off record price rise

AppNexus has claimed that a crackdown on invalid traffic on its platform helped kick off a record increase in the price advertisers are willing to pay for quality inventory during the last quarter, with a separate initiative from the ad tech platform seeing view through rates rocket by 77 per cent.

The findings are contained in its latest Digital Advertising Index, which also documents the period when the ad tech outfit launched its AppNexus IQ scheme that saw it root out traffic it deemed invalid, thus limiting the amount available via its platform.

AppNexus has claimed this resulted in the average clickthrough rates (CTR) jumping 46 per cent compared to 12 months earlier, with publishers selling inventory via the platform also seeing a 255 per cent jump in average CPMs, according to the report.

So dynamic was the supply-and-demand effect that the average CPM rate hit an all-time high of $1.76 on 29 September (the average for the quarter was $0.64), with average CTR hitting 0.062 per cent, compared to 0.043 per cent 12 months earlier.

In addition, the implementation of AppNexus IQ has also seen the average viewability rate increase 77 per cent compared to 12 months earlier, although the average viewability rates on the platform remained below 50 per cent during the period.

The report also ranked the average earnings of publication by category, with publishers in the news and current affairs - or Law and Government as AppNexus terms them - experiencing a boon due to increased coverage of next year's presidential election attracting the interests of both audiences and advertisers.

"While the 'losers' and 'haters' might not like it, real estate mogul and presidential hopeful Donald Trump made as much of a splash on the ad tech marketplace this summer as he did on the campaign trail," read the report, which also noted that online coverage of the race is likely to generate $1bn in advertising revenue.

"In the weeks leading up to early August’s opening Republican presidential debates, we saw a 245 percent increase in the number of impressions available from publishers in the Law and Government category."

The findings are based on an analysis of aggregated global spending and pricing data collected from over 1,400 buyers and sellers on the AppNexus platform in Q3 this year.

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Ronan Shields

I'm the digital editor at The Drum, and cover adtech and martech. Prefer news and analysis, over opinion pieces. Current fascination(s) are blockchain and media futures trading; also curious about transhumanism on a personal basis. NYC-based, but really London Irish.

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