Are Agencies Killing Their Programmatic Golden Goose?

Are Agencies Killing Their Programmatic Golden Goose?

Programmatic groups or “trading desks” have proved a bright spot for holding companies over the past few years, as marketers have steadily increased their spending through automated ad systems. But the opaque practices and pricing models of some of these agency groups have recently led marketers to question how their money is being spent, and in some cases to shun the groups completely in favor of building their in-house alternatives.

“Agencies didn’t really see the potential long-term implications of their decisions,” said AdExchanger director of research and former Forrester analyst, Joanna O’Connell, in reference to the trend. “Marketers’ hands are being forced because of the way holding companies and agencies are behaving… I feel that agencies essentially created this situation for themselves.” Read more…

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