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Programmatic Advertising-Benefits and Challenges

Jack Loechner, writing for Research Brief from The Center For Media Research, discusses a study by Econsultancy and Quantcast on programmatic advertising campaigns.

-Marketers expect to increase their programmatic ad spend by an average of 37% by 2017.

-40% of programmatic spending goes towards branding campaigns.

-41% of  companies surveyed are doing all of their programmatic advertising in-house.

Benefits include:

-64% of respondents to the study feel that efficiency is increased.

-58% have been able to reduce advertising costs.

-56% have gained the ability to optimize marketing in real time.

However, reservations do exist:

-Marketers are concerned over the control ceded in programmatic advertising.

-57% of marketers agree that there is an employee skills gap.

-23% of respondents are concerned about data privacy issues.

-16% are concerned about the lack of transparency.

Additionally, the report finds that 62% of marketers are running programmatic ad campaigns with branding rather than direct response objectives.  The report provides additional information on the benefits and challenges related to programmatic advertising spending, measurement, and its potential.

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For more on this topic, check out the Media Tab in Morning Coffee.