Amante Inc
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While programmatic continues to make substantial progress in the industry of advertising technologies, some marketers are very suspicious about its shortcomings. Today we'll tell why algorithmic buying is amazing and why it is quite normal to be a little afraid of it.
Programmable media advertising buying is the hottest trend today. Here are the facts.
- Many marketers today are using algorithmic buying.
- Few thoroughly understand what the given technology means.
- Popularity of programmable buying is growing very fast.
- Programmatic is useful.
- For many programmatic is scary.
- Programmatic came for a long time.
According to the report by Interactive Advertising Bureau (IAB), 98% of all US publishers sell a portion of their advertising resources programmatically today. Magna Global research agency experts expect that the cost of programmatic by 2017 will double to $ 16.9 billion in the US and $ 32 billion worldwide. According to IDC, the research firm that specializes in information technology market research, over the next two years the annual growth rate of popularity of algorithmic buying amount to 59%, making programmatic the fastest growing segment of digital advertising.
WHY WE NEED PROGRAMMATIC
Today's Internet can't be compared with the Network, which enmeshed the globe 10 years ago. Advertising opportunities of today are simply inexhaustible. Landscape of advertising technology has evolved into a complex digital ecosystem. We possess an incredible amount of data that can be useful for optimizing (targeting and pricing), but in fact we have much more data than a person can analyze and use. We have information about the user, his location, a variety of ways to control the efficiency, attribution models, and much more.
Algorithmic real-time buying is currently the only way to successfully use all this data, because it is doing all very hard work for us.
WHY IT SCARES: FRAUD AND MISINFORMATION
According to a study by AdExchanger, the number one problem facing by the agencies is the lack of deep understanding of programmatic and defective inventory. On the other hand, publishers argue that their biggest problem is the complexity of the technology of programmable advertising buying. Both the demand side and the supply sides express similar concerns: either they do not understand how they can use programmatic in specific circumstances, or believe that algorithmic buying is a playground for scammers and swindlers.
People are afraid of programmatic because of two reasons:
1. This is a label, which is glued to a number of very different ways of processing, what leads to some confusion.
2. One of these ways is to hide the fraudulent traffic and unscrupulous advertisers.
And both of the above reasons are closely linked.
Fraud in the case of algorithmic buying is a real problem. And it should be no surprise, since it happens with every new advertising technology that is just developing. Whenever a new technology comes to the market, the advertising industry needs time to develop best practices. Meanwhile, the opportunists use the chaos to build their machinations. Many modern programmatic-exchanges resemble the Wild West, which is full of pioneers trying to pave the way for innovation, and charlatans, bandits, who insert a stick in the wheel / hooves of conscientious hard workers. Some brands have to lose, it is inevitable. This is a movie we've watched.
Fear and uncertainty hovering around programmatic, are unfounded, so that it will not last long. Experience shows that every major shift in the industry anticipates a long discussion, which lasts for about 1.5 years.
It is important to remember that the model used before programmable advertising buying, faced with similar problems. However, the benefits of programmatic buying outweigh any risk, because this technology can significantly improve the efficiency of the processes of advertising buying. Programmatic should be seen only as one step in a long line of progress of the advertising industry. This is an improvement, which is constantly improving. Of course, as soon as we figure out how to exploit the potential of algorithmic buying at best, something new will appear and we will have to pass this path again. It's the life we've chosen.
Programmable media advertising buying is the hottest trend today. Here are the facts.
- Many marketers today are using algorithmic buying.
- Few thoroughly understand what the given technology means.
- Popularity of programmable buying is growing very fast.
- Programmatic is useful.
- For many programmatic is scary.
- Programmatic came for a long time.
According to the report by Interactive Advertising Bureau (IAB), 98% of all US publishers sell a portion of their advertising resources programmatically today. Magna Global research agency experts expect that the cost of programmatic by 2017 will double to $ 16.9 billion in the US and $ 32 billion worldwide. According to IDC, the research firm that specializes in information technology market research, over the next two years the annual growth rate of popularity of algorithmic buying amount to 59%, making programmatic the fastest growing segment of digital advertising.
WHY WE NEED PROGRAMMATIC
Today's Internet can't be compared with the Network, which enmeshed the globe 10 years ago. Advertising opportunities of today are simply inexhaustible. Landscape of advertising technology has evolved into a complex digital ecosystem. We possess an incredible amount of data that can be useful for optimizing (targeting and pricing), but in fact we have much more data than a person can analyze and use. We have information about the user, his location, a variety of ways to control the efficiency, attribution models, and much more.
Algorithmic real-time buying is currently the only way to successfully use all this data, because it is doing all very hard work for us.
WHY IT SCARES: FRAUD AND MISINFORMATION
According to a study by AdExchanger, the number one problem facing by the agencies is the lack of deep understanding of programmatic and defective inventory. On the other hand, publishers argue that their biggest problem is the complexity of the technology of programmable advertising buying. Both the demand side and the supply sides express similar concerns: either they do not understand how they can use programmatic in specific circumstances, or believe that algorithmic buying is a playground for scammers and swindlers.
People are afraid of programmatic because of two reasons:
1. This is a label, which is glued to a number of very different ways of processing, what leads to some confusion.
2. One of these ways is to hide the fraudulent traffic and unscrupulous advertisers.
And both of the above reasons are closely linked.
Fraud in the case of algorithmic buying is a real problem. And it should be no surprise, since it happens with every new advertising technology that is just developing. Whenever a new technology comes to the market, the advertising industry needs time to develop best practices. Meanwhile, the opportunists use the chaos to build their machinations. Many modern programmatic-exchanges resemble the Wild West, which is full of pioneers trying to pave the way for innovation, and charlatans, bandits, who insert a stick in the wheel / hooves of conscientious hard workers. Some brands have to lose, it is inevitable. This is a movie we've watched.
Fear and uncertainty hovering around programmatic, are unfounded, so that it will not last long. Experience shows that every major shift in the industry anticipates a long discussion, which lasts for about 1.5 years.
It is important to remember that the model used before programmable advertising buying, faced with similar problems. However, the benefits of programmatic buying outweigh any risk, because this technology can significantly improve the efficiency of the processes of advertising buying. Programmatic should be seen only as one step in a long line of progress of the advertising industry. This is an improvement, which is constantly improving. Of course, as soon as we figure out how to exploit the potential of algorithmic buying at best, something new will appear and we will have to pass this path again. It's the life we've chosen.