What are the Top Ad Threats in the Programmatic Space

What are the Top Ad Threats in the Programmatic Space

By: Austin Dicharry

Programmatic is no longer a fad. It’s the new normal for digital advertising. With the programmatic advertising sector projected to reach $33 billion by 2017, marketers continue to fill the automated advertising space to wage war for consumer attention. The latest threat to programmatic advertising and retargeting is obesity. This fattening threatens the ability to make decisions in real time. At many points, digital fitness is threatened.

Too much data is making it a problem for branding and is fueling the data obesity culture. Filling endless dashboards with data and no forethought of how to use it is a problem. Single actionable insights are key to this issue, and less is more is the new mantra. With a minimal actionable dataset, data can be easier tracked for brand lift and attention.

Right now, automated advertising has a gluttonous amount of inventory in multiple ad exchanges. This could make buying and selling nearly impossible. To cut the fat, SSPs, DSPs and trading platforms have begun to reduce the choices for both premium and mass content. Many marketers are counting on the private marketplace for higher returns and a better focus on brand performance.

Another threat is the programmatic space is bloated measurement. Without a doubt, measuring results hasn’t been easy in the programmatic world, especially in comparison to the clicks and sales in the direct-response arena. Brand lift, recall and attention have gained mind share, but the choices in programmatic are limited. As a result, brand advertisers need to spend more time are getting lean with analytics and measurement.

Although the ad exchange world has become more transparent to make advertisers feel more confident in spend their brand dollars, there’s still an issue with how cash flows around the ecosystem. Many advertisers just don’t feel comfortable with the fat technology tax. This tax is defined in the industry as the men who take the majority of the ad spend dollars in the trading process. Out of $10 invested, only $4 finds its way to the publisher. That leaves a $6 technology tax. Cutting out the potbellied middlemen needs to take place to improve the health problem in the programmatic advertising marketplace.

With streamlining big data, using private exchanges, simple measurement and less middlemen, the main threats in programmatic can be minimized. Without these measures in place, the epidemic facing automated advertising will only continue to grow.

 

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