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The Evolution of Programmatic and How That Evolution Has Affected Price

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As confirmed by AdWeek and Business Insider, programmatic prices are on the rise. Business Insider notes that social ad eCPMs have increased over 50% along with all other types of ads also rising in cost, while AdWeek points out a general increase in price across audience segments, industries, and types of impressions. This rise in price is often associated with increasing advertiser demand and a rise in bidding buyers of the programmatic world. However, there is an intermediary between increasing demand and increasing cost. Programmatic SSPs are not simply upping average price floors because they can, as more advertisers enter the programmatic arena. The increasing demand for impressions has swayed more publishers to place premium inventory into exchanges, and this increase in quality is actually a more significant cause of the price surge. Today, programmatic has evolved dramatically from its origins as a means for publishers to sell remnant inventory. Not only

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