DorisRon
Member
Have you already retired advertising agencies? Do not jump to conclusions, because programmatic does not mean automation of creativity. Or are you still looking to program the inspiration?
Much has been said about the devastating impact of programmatic on the traditional model of advertising agencies. With the growing popularity of algorithmic buying, on which this year about $ 10 billion will be spent, this issue is becoming increasingly controversial. Communications Group WPP CEO, Sir Martin Sorrell, is sure that intracorporate programmatic is a "temporary phenomenon". Many may say that the opinion of the general director of the largest advertising holding company in the world is more than biased, but it is not so. The only way to verify this is to wait for 2017, which will be the year of agencies and the Renaissance for creativity.
At their core advertising agencies are serving enterprises engaged in the planning, creation and processing of advertising content for customers. Their core competencies are still in demand. While the traditional image of an advertising agency, which is clearly presented in the "Mad Men" series, is hardly effective, in fact, its role in the advertising market is critical. And today, in the era of algorithmic buying, advertising agencies are more relevant and indispensable than ever before.
Let's understand why a programmatic successful campaign requires the participation of advertising agencies.
1. Internal marketing lacks the experience to excel in the use of new technologies
Internal corporate marketers work with only one client - their company. And since the business has a variety of marketing needs and challenges, the cooperation of marketing and new technologies can be called an interactive process. Agencies were involved in both the successes and the failures of numerous advertising campaigns of their clients, so they have deep expertise in this area. If the company learns from its mistakes, it is saved from costly failures.
Domestic trading using DSP is still limited with a small set of technologies that doesn't allow you to deploy the full and cost-effective campaign. Introduction of innovative technologies requires a fairly large investment, while innovations have a nasty habit of quickly outdating. On the other hand, the agencies have both internal and external solutions. In addition, they are able to negotiate a great price with private exchanges and profitably buy an exclusive inventory. In this marvelous world of emerging technologies marketers can not afford to play the game of "Do It Yourself".
2. Programmatic needs more creativity
Advertising agencies have experienced shifts of not one paradigm of content consumption. They have successfully worked during the print, radio and television eras, which are now for the most part moved to the Internet, with its cross-channel marketing. But most importantly, they were able to survive in the rapid evolution of the advertising market, having learned to clearly define their targeting audience and create high-quality branded content. At all times, any changes caused confusion in the market, but marketing had not faced anything that even remotely resembled programmatic. After all, technology vendors promise that programmatic can be used for global automation of workflow - up to robotics in creative design. But instead of blind faith in the triumph of technology, we must understand that the creative component will always prevail. Automation of creativity is something from the field of futurology.
Programmable advertising ensures timely dissemination of content in an ever-growing number of formats (video, native advertising). But, given the specificity and variability of modern campaigns, agencies simply can not be considered an anachronism. And since the campaigns include the right consumers at the right time, then the "right message" becomes more important than ever. Think about programmatic in the light of email marketing. This technology allows the combination of a platform and data to reach the target audience. But if you ignore the content, the campaign will collapse like a house of cards, because email marketing is mostly done by hand. That is why the content is the cornerstone of any advertising campaign. And in this regard, as it is known, agencies will give odds to anyone.
3. Turbulent market of high-quality impressions requires the expert guidance
If you want to cross the Himalayas, you definitely need an experienced guide. And the same thing with advertising - to be successful in a difficult environment, we need qualified assistance.
Since fraud thrives in the not yet formed ecosystem, brands need the help of outside experts to ensure the safety of campaigns. Every day there are new threats, so technology providers must be checked, filtered and curated. So that the intracorporate campaigns are an extra risk of getting caught on the hook of swindlers.
4. Successful campaigns need data
Programmatic campaigns are so good as the used data is good. As Peter Staebler, the chief analyst at Wells Fargo Securities, said: "Data is the new oil." Internal corporate marketers need to understand that today they have just incredible amounts of data sufficient for accurate targeting and competent look-alike modeling. But these data lacks scalability. And although corporate marketers can agree on more precise data, the use of indirect data of partners or additional customization of their campaigns, it is still quite an onerous process that never ends.
Arun Kumar of IPG Mediabrands, says that brands are not in a position to really assess the amount of investments required to launch a successful campaign. Сustomization and optimization of any advertising company are in many ways the processes that require the intervention of creatives. Algorithmic buying critically needs data and optimization, but does not discount the ability to improvise and creatively assess the situation on the market. And this can be done only by professionals. Corporate marketers who practice algorithmic buying by themselves, risk, first of all, with the quality of data. Agencies also help to significantly reduce this risk.
5. Programmatic is not a commodity exchange, because it needs professional brokerage services
A self-service model works on the exchange securities markets and in commodity markets, because the subject of bargaining is absolutely clear, liquid, and its value is determined by the market price. On the advertising market everything is different. First of all, despite all the efforts of innovators from the supply side, publishers have no grounds to commoditize their inventory. With high-quality content you will get valuable users with different probabilistic assessment of the extent of accordance with this or any other marketing purposes. When performing programmatic-transaction the customer buys not only inventory, but also a vision of marketers. Nowadays programmable advertising brings publishers relatively small dividends, that's why they will be looking for such a business relationship that would be able to provide more dynamic content and, of course, high returns. For example, CPM video is $ 25 on the average, and it is about 1000% greater than banner advertising. But the design of video ads requires substantial capital investment and often intervention of a creative agency. And as marketers seek the optimal results, and publishers dream of their inventory to be in the premium segment, all business processes must be managed by professionals. And the agencies have not still a viable alternative.
A new technology has always faced with incomprehension. The threat of automation, as well as the theory that the robots will once completely replace the humans, caused a heated debate at the dawn of the computer age. Today man is really inferior to machines and automated processes predominate. But in the areas of creativity, such as advertising, brands should always cooperate with those who know how to succeed - especially in a developing environment.
To summarize, let's consider the following analogy. Programmatic for advertising is like Pandora Internet Radio for music. Pandora service provides algorithmic distribution of content based on behavioral characteristics and other user attributes. Its main purpose is to show the right content at the right time and just to the right people. But despite all the talks of global automation, nobody automates the writing of the songs, and excludes artists from the creative process. Inspiration can not be programmed. It would be foolish to assume that the musical bands may cease to exist simply because we consume content and software on Pandora. You can not create your favorite music "intra-corporately" but delegate the task to your favorite bands, which, in fact, are your agencies.
The automation should not be taken as the replacement of creativity, which is administered by the agencies. As in the case with our music analogy, programmatic does not limit the role of agencies. On the contrary, the new technology once again underlines that in certain matters of advertising agencies are the alpha and omega.
Much has been said about the devastating impact of programmatic on the traditional model of advertising agencies. With the growing popularity of algorithmic buying, on which this year about $ 10 billion will be spent, this issue is becoming increasingly controversial. Communications Group WPP CEO, Sir Martin Sorrell, is sure that intracorporate programmatic is a "temporary phenomenon". Many may say that the opinion of the general director of the largest advertising holding company in the world is more than biased, but it is not so. The only way to verify this is to wait for 2017, which will be the year of agencies and the Renaissance for creativity.
At their core advertising agencies are serving enterprises engaged in the planning, creation and processing of advertising content for customers. Their core competencies are still in demand. While the traditional image of an advertising agency, which is clearly presented in the "Mad Men" series, is hardly effective, in fact, its role in the advertising market is critical. And today, in the era of algorithmic buying, advertising agencies are more relevant and indispensable than ever before.
Let's understand why a programmatic successful campaign requires the participation of advertising agencies.
1. Internal marketing lacks the experience to excel in the use of new technologies
Internal corporate marketers work with only one client - their company. And since the business has a variety of marketing needs and challenges, the cooperation of marketing and new technologies can be called an interactive process. Agencies were involved in both the successes and the failures of numerous advertising campaigns of their clients, so they have deep expertise in this area. If the company learns from its mistakes, it is saved from costly failures.
Domestic trading using DSP is still limited with a small set of technologies that doesn't allow you to deploy the full and cost-effective campaign. Introduction of innovative technologies requires a fairly large investment, while innovations have a nasty habit of quickly outdating. On the other hand, the agencies have both internal and external solutions. In addition, they are able to negotiate a great price with private exchanges and profitably buy an exclusive inventory. In this marvelous world of emerging technologies marketers can not afford to play the game of "Do It Yourself".
2. Programmatic needs more creativity
Advertising agencies have experienced shifts of not one paradigm of content consumption. They have successfully worked during the print, radio and television eras, which are now for the most part moved to the Internet, with its cross-channel marketing. But most importantly, they were able to survive in the rapid evolution of the advertising market, having learned to clearly define their targeting audience and create high-quality branded content. At all times, any changes caused confusion in the market, but marketing had not faced anything that even remotely resembled programmatic. After all, technology vendors promise that programmatic can be used for global automation of workflow - up to robotics in creative design. But instead of blind faith in the triumph of technology, we must understand that the creative component will always prevail. Automation of creativity is something from the field of futurology.
Programmable advertising ensures timely dissemination of content in an ever-growing number of formats (video, native advertising). But, given the specificity and variability of modern campaigns, agencies simply can not be considered an anachronism. And since the campaigns include the right consumers at the right time, then the "right message" becomes more important than ever. Think about programmatic in the light of email marketing. This technology allows the combination of a platform and data to reach the target audience. But if you ignore the content, the campaign will collapse like a house of cards, because email marketing is mostly done by hand. That is why the content is the cornerstone of any advertising campaign. And in this regard, as it is known, agencies will give odds to anyone.
3. Turbulent market of high-quality impressions requires the expert guidance
If you want to cross the Himalayas, you definitely need an experienced guide. And the same thing with advertising - to be successful in a difficult environment, we need qualified assistance.
Since fraud thrives in the not yet formed ecosystem, brands need the help of outside experts to ensure the safety of campaigns. Every day there are new threats, so technology providers must be checked, filtered and curated. So that the intracorporate campaigns are an extra risk of getting caught on the hook of swindlers.
4. Successful campaigns need data
Programmatic campaigns are so good as the used data is good. As Peter Staebler, the chief analyst at Wells Fargo Securities, said: "Data is the new oil." Internal corporate marketers need to understand that today they have just incredible amounts of data sufficient for accurate targeting and competent look-alike modeling. But these data lacks scalability. And although corporate marketers can agree on more precise data, the use of indirect data of partners or additional customization of their campaigns, it is still quite an onerous process that never ends.
Arun Kumar of IPG Mediabrands, says that brands are not in a position to really assess the amount of investments required to launch a successful campaign. Сustomization and optimization of any advertising company are in many ways the processes that require the intervention of creatives. Algorithmic buying critically needs data and optimization, but does not discount the ability to improvise and creatively assess the situation on the market. And this can be done only by professionals. Corporate marketers who practice algorithmic buying by themselves, risk, first of all, with the quality of data. Agencies also help to significantly reduce this risk.
5. Programmatic is not a commodity exchange, because it needs professional brokerage services
A self-service model works on the exchange securities markets and in commodity markets, because the subject of bargaining is absolutely clear, liquid, and its value is determined by the market price. On the advertising market everything is different. First of all, despite all the efforts of innovators from the supply side, publishers have no grounds to commoditize their inventory. With high-quality content you will get valuable users with different probabilistic assessment of the extent of accordance with this or any other marketing purposes. When performing programmatic-transaction the customer buys not only inventory, but also a vision of marketers. Nowadays programmable advertising brings publishers relatively small dividends, that's why they will be looking for such a business relationship that would be able to provide more dynamic content and, of course, high returns. For example, CPM video is $ 25 on the average, and it is about 1000% greater than banner advertising. But the design of video ads requires substantial capital investment and often intervention of a creative agency. And as marketers seek the optimal results, and publishers dream of their inventory to be in the premium segment, all business processes must be managed by professionals. And the agencies have not still a viable alternative.
A new technology has always faced with incomprehension. The threat of automation, as well as the theory that the robots will once completely replace the humans, caused a heated debate at the dawn of the computer age. Today man is really inferior to machines and automated processes predominate. But in the areas of creativity, such as advertising, brands should always cooperate with those who know how to succeed - especially in a developing environment.
To summarize, let's consider the following analogy. Programmatic for advertising is like Pandora Internet Radio for music. Pandora service provides algorithmic distribution of content based on behavioral characteristics and other user attributes. Its main purpose is to show the right content at the right time and just to the right people. But despite all the talks of global automation, nobody automates the writing of the songs, and excludes artists from the creative process. Inspiration can not be programmed. It would be foolish to assume that the musical bands may cease to exist simply because we consume content and software on Pandora. You can not create your favorite music "intra-corporately" but delegate the task to your favorite bands, which, in fact, are your agencies.
The automation should not be taken as the replacement of creativity, which is administered by the agencies. As in the case with our music analogy, programmatic does not limit the role of agencies. On the contrary, the new technology once again underlines that in certain matters of advertising agencies are the alpha and omega.