It used to be that ad agencies were the ultimate source of programmatic know-how. That’s not the case these days as many advertisers are becoming much more educated about programmatic advertising and ad tech in general. The need for transparency is driving advertisers to bring programmatic in-house. Many are seeing the DIY approach as the best way to garner insights and knowledge.
Such a shift is tipping the balance of programmatic smarts and control away from the agencies and to the advertisers themselves, allowing them, among other things, to keep command over their sensitive first-party data. It’s worth noting talent restraints and lack of implementation strategies are the key challenges these advertisers now face.
What Every Tech-Savvy Marketer Should Know About the Future of Programmatic Advertising
Here’s something marketers should mentally bookmark about the future of programmatic advertising: it lives in private marketplaces because that’s where big brands are starting to spend more of their money. By 2016 they will be an $8.6 billion industry.
When considering private programmatic, remember how private marketplaces allow brands and publishers to choose the partners they work with. The models may vary, but firms can customize campaigns and optimize for brand-centric metrics. Advertisers hold more sway over the impressions they purchase. Some private auctions may have preferred buyers participating. Reach can be a drawback. Finally, the next iteration of the private marketplace will likely enable spending commitments and inventory guarantees.
All that said, while private marketplaces do have several advantages, they also have their limitations.
Top Programmatic Trends for 2015
A year ends and a new one begins. Here are some programmatic trends the IAB has said will turns heads in 2015.
Watch for the death of the campaign. We are transitioning into an era of the constant online presence, the always-on campaign that continuously pushes tailored messages. Also, there is finally a standard API for purchasing premium programmatic advertising in OpenDirect.
The industry has fraud in its crosshairs, as that challenge continues to be an issue for programmatic skeptics. Expect mergers and acquisitions in the programmatic space to keep going strong in the New Year. Also look for the industry to begin tackling more long-term issues such as attribution and the “race to the bottom” on CPMs.