How Has Programmatic Affected Digital Publishers?

How Has Programmatic Affected Digital Publishers?

By: Cortland J. Fondon

Not unlike the way that outsourcing writing and editing services have become common on the digital age, programmatic advertising–or software-based or automated advertising–continually gains momentum. Once bought and sold by humans, programmatic advertising has eliminated the human sales element in favor of digital ads. Of course, the digital trend serves to trim publishers’ budgets, but the question is how this trend has affected digital publishers in other ways.

Varying Adaptation Developments

Some media companies are experiencing moderate headwinds when making the shift to programmatic advertising. Many major media outlets, such as those that produce major cable programs on networks like HGTV and The Food Network, which are normally advertising stalwarts note a steep decline in revenue due to the inability to monetize mobile targets. With this, programmatic advertising is creating some discomfort amount these outlets, according to Ad Exchanger.

On the other hand, Exchange Wire casts this relatively new style of digital advertising buying in a different–and much more positive–light. Less mired in the current and somewhat uncertain state of automated advertising, some experts note the potential for this type of advertising buying methodology. Looking at Europe, finding that 89 percent of its publishers and advertisers anticipate great success with programmatic software and ad buying, it seems as though programmatic advertising may well create a large impact on digital advertising.

The Key to Success for Automated Advertising

Programmatic channels toward advertising will become more seamless and vastly more successful through adoption and adaptation. As more ad buyers, brands, agencies and technology experts embrace this type of advertising buying, its functionality, ease of use and effectiveness will grow. Keeping faith in this new method of advertising is the key to its success, so it is important for digital publishers to weather the headwinds and the minor storms that they bring with them as programmatic advertising grows and becomes more the standard than the exception.

Programmatic Site Retargeting

Programmatic site retargeting (PSR) uses programmatic channels to help reach website visitors and potential customers in a rich and direct way. PRS helps identify a website’s frequent and favorite visitors and personalizes their page and the ads that they see.

The Overall Effect of Programmatic Advertising on Digital Publishers

As automated advertising continues to grow, and as companies come to trust its effectiveness, Magna Global predicts that, based on real-time bidding (RTB), this type of ad buying could increase in volume to $17 billion by the year 2017.

 

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