eMarketer Says There Are 'Hurdles Ahead' For Programmatic Ad Buying
April 9, 2015 at 3:56 AM (PT)
YESTERDAY (NET NEWS 4/8) ALL ACCESS reported that iHEARTMEDIA would launch a programmatic and automated ad buying solution for its broadcast radio stations, powered by cloud-based technology innovator JELLI. The practice is widely embraced in the industry, but is not without some issues.
eMARKETER points out that "programmatic spending is set for huge growth in 2015. According to U,S, media buyers surveyed in MARCH 2015 by DIGIDAY in association with SONOBI, nearly nine in 10 said increasing programmatic ad spend would be a focus of their future digital ad strategy. However, the industry still faces several hurdles before programmatic becomes universal, and quality control is one of the top areas for improvement. Among respondents, 40.7% said there was a significant or very significant loss of control when purchasing ad inventory programmatically vs. direct, and an additional 43.3% said there was at least a moderate loss of control. Just 16% felt little to no control was lost."
Quality concerns such as viewability is not the lone issue buyers note, as "it makes sense that placement is critical, too. Nearly three-quarters (73%) polled by DIGIDAY said placement transparency was essential in their decision to move more ad spend from direct to programmatic -- the second-highest response, behind only audience targeting (86%) and well ahead of third-place inventory availability forecasting (44%)," adds eMARKETER.
"Following massive growth of 135.5% in 2014, eMARKETER estimates that U.S. programmatic digital display ad spending will rise 48.9% this year to $14.88 billion, or 55.0% of total digital display ad expenditure. Programmatic sellers that work closely with buyers and have clear lines of communication about quality and ad placement stand to benefit from those extra programmatic dollars."