Commentary

Agencies, Marketers, Buyers And Sellers Arm Wrestle Over Programmatic

According to the new Programmatic Advertising Report released by Advertiser Perceptions, while buyers are focusing their efforts on better performance and a stronger ROI, sellers are looking for easier to use products, improved audiences and more premium inventory. Each company and innovation that is developed adds another layer of complexity, says the report, and with it another potential point of confusion for marketers, their agencies and publishers alike.

The majority 59% of Marketers are planning to move their programmatic buying in-house, yet 61% of Agencies do not believe this will happen. The disconnect extends to Buyers and Sellers: Buyers anticipate their programmatic media spend will grow 21% in 2015 to account for nearly half of their total digital ad budgets, while Sellers don’t expect programmatic inventory to grow substantially.

Four out of 10 programmatic advertisers see a need to demonstrate better ROI, while three in 10 cite the need for greater transparency in ad placement and the related need for assurance that their ad is in a brand-safe environment, says the report. The shift from traditional to programmatic trading continues. Buyers will rely less on traditional buying in 2015.

Allocation of Digital Advertising   (Traditional vs. Programmatic)

Allocation of Digital Ad Budgets

2014

2015

Media buyers

   Traditional

62%

54%

   Programmatic

38%

46%

Agencies

   Programmatic

35%

43%

Marketers

   Programmatic

40%

47%

Source: AdvertiserPerceptions, May 2015

Recent negative press around viewability issues is having a major impact on commitment to programmatic for Buyers and Sellers alike. Half of those already spending in programmatic say that the press stories “strongly impact” their commitment. Transparency is cited over and over as single most important quality in a successful partnership, says the report. The entire media community is concerned about “quality” and “viewing” issues.

Impact of Inventory Quality and Viewability Stories on Programmatic Commitment

Impact

% of Media Buyers

% of Media Sellers

Strongly

48%

59%

Somewhat

39

27

None

13

14

Source: AdvertiserPerceptions, May 2015

The report concludes by noting that the programmatic marketplace is filled with jargon and nomenclature confusion. Among even advanced programmatic marketers, says the report, the ways that the marketplace categorizes companies are not well understood.

Advertiser Perceptions says the The Programmatic Advertising Report helps media brand executives make sense of what agencies and their clients think of programmatic advertising and the Ad Exchanges, DSPs, Trading Desks, DMPs, and SSPs that conduct business in this arena.

For additional information, please visit AdvertiserPerceptions here.

 

 

1 comment about "Agencies, Marketers, Buyers And Sellers Arm Wrestle Over Programmatic".
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  1. cara marcano from reporte hispano, May 21, 2015 at 12:45 p.m.

    Why should people -- client, agency, publisher use programmatic? 
    Where is the evidence that it either drives sales or produces some great efficiency without huge negative impacts to quality and ROI?

    I don't see or hear anyone answering this question. 

    Media is not supposed to be only a cost-cutting initiative. If you want to use it as a cost-cutting initiative just don't buy any media. 


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