The death of the programmatic advertising industry

The death of the programmatic advertising industry

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A letter from the editors of Programmatic Advertising.org 

Because of programmatic advertising’s wide array of powerful targeting methods and tools, advertisers have more cost-effective, personalized options they can use to reach their audiences.  

However, we believe that the business of programmatic advertising is dying even though the technology holds tremendous potential. 

The issue lies in an ailing programmatic industry business model.

Stocks for major programmatic players are in decline, and many industry-leading companies have merged or been acquired. Increased consolidation indicates that a market is commoditizing as product and brand innovation fall by the wayside. These factors show signs for concern, proving that the business of programmatic is in need of assistance.

Calling all doctors!

Agencies should be hospitals for marketing campaigns.

Brands seek the help of agencies to heal campaigns.  Today, agencies are armed with an incredibly powerful array of precise algorithms and high-quality data for strengthening audience relationships. However, they lack the most essential element for saving client campaigns, and therefore, the industry — service.

An agency without service is like a hospital without doctors.

Attentive service from agency programmatic doctors is crucial. Service has a dual purpose in healing the industry. It not only differentiates programmatic providers in a fog of technical buzzwords, but is a necessity for improving client campaigns. Programmatic consumers desperately need teams of attentive data scientists, account managers and creatives for perfecting client campaigns.

“Patient heal-thy-self” doesn’t work in programmatic

Customers turn to advertising agencies for advice, expertise and solutions. Simply handing clients a platform and wishing them good luck in managing their campaign violates the programmatic, Hippocratic Oath.

The business of programmatic has blatantly neglected the fact that proactive human insight and guidance are still necessary for running advertising campaigns. Most clients are simply incapable of improving their programmatic investment’s performance by themselves. They lack the knowledge, insight and resources to optimize their investment. The personal touch – manually configured campaigns and intuitive, eye-catching creative – are not options, but requirements.

Programmatic Advertising.org argues that industry players trust relationships with attentive data science, marketing and creative experts much more than platforms or algorithms alone. This layer of humanity makes programmatic more productive and profitable for all. 

Because the industry is taking a commoditized approach, the focus on service has been eliminated from product focus and brand positioning. As a result, the programmatic business model fails advertisers and programmatic providers alike. 

Programmatic advertising is a service, not a product.

Many people fail to realize that while algorithms are skilled at understanding past information, they only have a limited ability to draw correlations with new data that could lead to major improvements in campaigns. 

Experienced human management and ingenuity connects the dots among computer algorithms, historical data and a constantly evolving set of inputs.

An algorithm only knows what its human wielder shares with it. For instance, consider the term “daVinci Robotic Surgery.” An algorithm could easily track the phrase, but understanding the context of the term in a publication is much more challenging. Algorithms often struggle in generating additional terms that relate to products or services, even when machine learning is applied.

Involving humanity in programmatic advertising is the key to record-breaking campaign performance and a durable, vivacious industry.

We are stewards of programmatic in this incredible era of data-driven marketing.

Let’s save the programmatic business model in 2015 by pursuing a renewed focus on dedicated service and attentive client campaign management. 

Help us save the programmatic industry

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