New York—Ad spending on sponsored content on premium publisher sites is growing faster than predicted, according to eMarketer. Advertisers are expected to spend $1.90 billion on sponsored content this year in the U.S., up 24.4% over $1.54 billion last year. In June, eMarketer had forecast that marketers would spend $1.88 billion this year.
The growth in sponsored content is connected to the rise of targeted programmatic ad placements from ad exchanges, which auction off unsold space at low rates. This is spurring publishers to emphasize their own, more lucrative premium placements, eMarketer said in a statement.
The company said this and other trends will contribute to a 13.3% increase in digital ad revenue among magazines this year and a 5.6% increase among newspapers.