The current landscape
There are a few different ways that brands can run their programmatic display campaigns, but some of them come with challenges when it comes to transparency.
Some agency trading desks can be known for marking up costs and providing little transparency. This could lead to media buying being led by their interest rather than yours.
However, working with agency teams that are able to fully disclose all costs, placements and data use is the best option.
Programmatic media, although having been around for just over ten years in its current automated form, is reaching maturity.
Watch out for fees
Working with third-party media delivery partners tends to bring with it undisclosed fees and margins, and some of the metrics used allow for the partner to hide behind poor quality inventory, undisclosed tactics or less transparent payment models such as Cost Per Acquisition (CPA).
Spend is set to increase this year and beyond, with many marketers and agencies upskilling teams to ensure it’s understood across all disciplines as it rolls out to other forms of media, and touches on other areas of their business.
Challenges of Programmatic Advertising according to brand advertisers worldwide, Aug 2017
% of respondents
Note: Numbers may not add up to 100% due to rounding. Source: Infectious Media ‘Report into the programmatic in-house trend’.
Reference: Challenges of programmatic advertising according to brand advertisers worldwide, Aug 2017, www.emarketer.com.
As shown in the table above, clarity and transparency are issues being faced by the majority - there’s a much greater demand for knowledge of what’s happening behind the scenes. It’s a topic that’s become more and more widely discussed, and a lack of transparency is fast becoming something those in the market are being pulled up on.
As a result, transparency should be high on the agenda for brands that use, or are thinking of using programmatic media, which in practice could mean consolidating their partnerships for greater control, or selecting partners that are 100% transparent in the first place.
Data transparency is a priority for many brands so that they can understand the true cost for use of third party data, or CPM mark-ups, and have the reassurance that their data is their own, and not being used for the benefit of other advertisers, or even sold on.