“Watchouts with Programmatic Buying” – Dstillery


Optimization and measurement remain challenging primarily because the actions worth measuring (e.g., product purchase) often are exceedingly rare, not measurable at all, or only partially traceable to the digital identity of the consumer who was exposed to the ad.

As a result, we look for suitable alternative/proxy target variables when data on the true objective is in short supply or even completely nonexistent. In previous research we asked ourselves “is click the right proxy for evaluation and optimization of display advertising campaigns where the ultimate goal is purchase?”

In this research, we asked – “why is the click not a good proxy?”

For more information visit Audience Measurement

Majority of European Video Buyers Use Programmatic, AOL Report Finds

According to AOL’s “2015 European State of Video Industry” report, 98% of video buyers surveyed in European markets buy digital video programmatically. On the sell side, 97% of those surveyed are selling digital video programmatically instead of using traditional models.

AOL, working with Advertiser Perceptions, collected quantitative data on digital video from 411 brands, agencies and publishers in the U.K., France, the Netherlands and Germany.

Among the findings of this report:

-Mobile video is the “most robust growth area” in digital media, with 42% of buyers surveyed reporting a rise in mobile digital video budgets last year.

-42% of advertisers surveyed said they buy digital video directly from publishers.

-48% of advertisers said they’d brought programmatic video-buying capabilities in-house, and 47% said they planned to do so in the next year.

This report included the varying concerns of buyers and sellers concerning programmatic digital video.

Buyers: Need to integrate into existing process and systems and an inability to access premium inventory at scale.

Publishers: Perceived risk of the commoditization of content, a lack of existing process and systems, and a lack of expertise.

Both buyers and sellers surveyed cited viewability issues and fraud scores as important when measuring campaign performance.

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Despite Obstacles, Programmatic Video Advertising Maturation Advances

The adoption of programmatic video advertising is expected to grow rapidly over the next 24 months, according to this article, which summarizes some of the conclusions from the eMarketer report, “Programmatic Video Advertising: Poised for Rapid Growth Despite ‘Premium’ Holdouts.”




Programmatic ad dollars will account for only 39% of total US video ad spending this year.  However, growth is expected as a result of better ad quality and an increase in premium inventory.  Current concerns with audience identification, targeting and measurement also need to be resolved.

This article presents eMarketer’s forecast of a triple-digit jump in US programmatic video ad spending in 2015 and a further 84.5% increase in 2016.  By 2017 the portion of programmatic digital video ad dollars will move closer to the broader average for programmatic activity (72%), accounting for 65%, or $7.43 billion.

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Is the Future of TV Programmatic?

The panel discussion, “Is the Future of TV Programmatic?” was a highlight at comScore’s first industry summit on the future of audiences and advertising.  Josh Chasin, writing for the comScore Insights blog, discussed the working definition developed by the panel, “Programmatic is simply about automation.”  However, the panelists also felt that “one of the principal implications of this automation is the opportunity to introduce data assets into the transaction process in a more efficient way than ever before.”

Chasin points out that the panelists were all strongly positive on programmatic growth in TV advertising transaction; however, they also unanimously believe that the upfronts will continue in the near future.  As long as the demand for TV advertising inventory exceeds the available supply, there will be an upfront market in order to secure access to that inventory.

However, this TV inventory (or “video inventory” is the term preferred by the panelists) will increasingly be transacted programmatically.  In addition, the scatter market is expected to develop in a similar manner to the RTB, the exchange-based market in the digital space.  Programmatic platforms will enable scatter deals to get done closer to real time.

The panelists agreed that TV is going programmatic, which will benefit both buyers and sellers.

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



Programmatic rises, ad viewability falls

Adform, a Danish digital advertising insights firm, reported that ad space bought via programmatic trading increased 76% year-on-year to April 2015, driven to a large extent by a 333% rise in spend on branding ad formats. However, despite brand advertisers paying more attention to programmatic, ad viewability across Europe declined 0.7% to 55% over the past year.

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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.



We Need a Bigger Toolbox

A report from the IAB and the Winterberry Group reveals that enterprise marketers use on average over a dozen distinct ad/marketing data toolsets, with close to 10% using more than 30 tools. Tools were mainly used by organizations’ digital marketing, analytics, media buying, and CRM teams. Read more »