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5 Programmatic Mistakes That You’re Probably Making



While the advertising industry is shifting to programmatic, many are still clouded by misconceptions. Hear from Yahoo's Craig Whitmer on the 5 things the industry is getting wrong about programmatic.

The advertising industry is currently in the midst of a significant transition toward programmatic. According to eMarketer, in the U.S., programmatic ad spend topped $10 billion in 2014 and is set to double that number by 2016. Despite this rapid growth, skepticism among agencies and brands still exists.
 According to a 2014 survey by Millward Brown Digital, 40% of respondents said that they don’t know where to begin when it comes to programmatic. The main reason? While this technology has been around for some time, many are still clouded by misconceptions. 
Here’s my take on the five things the industry is getting wrong about programmatic advertising. 

1. All KPIs are created equal. 
As the shift toward mobile video advertising increases, reevaluating your key performance indicators (KPIs) is crucial. Keep in mind that performance and metrics vary depending on the purpose of your ad and where it lives (desktop vs. mobile apps vs. mobile Web). For example, when it comes to pre-roll video ads, the IAB recommends using “time spent” as your primary KPI, while comScore suggests mobile ads perform better on late-stage metrics, such as likelihood to recommend and purchase intent. Using the appropriate KPIs for campaigns is crucial to accurately measuring ROI.

2. Relationships no longer matter. 
Programmatic buying and technology-driven execution are quickly becoming mainstream, as today’s media buyer becomes tomorrow’s programmatic platform buyer. However, while programmatic technology automates the process of buying, there will always be a need for experts who can educate, consult and help advertisers reach their goals and ensure they’re making the most out of their programmatic ad campaigns.

3. Programmatic kills creativity. 
In the past, many have viewed programmatic as a constraint for creativity. But one could argue that rather than killing creativity, programmatic is laying the ground for a new wave of creative thinking. As programmatic is so targeted, it allows advertisers to scale different creative executions for different audiences—and data is the missing link that helps to find the right audience for each piece of creative content.

4. Mobile lacks standardization and measurement. 
Despite the significant growth in mobile video consumption, brands are hesitant to take the leap to programmatic video on mobile due to a variety of hurdles. However, advances in audience measurement, standardized implementation (MRAID Video Addendum) and audience targeting on mobile present new and more effective opportunities for advertisers to tap into mobile video.

5. Programmatic offers low-quality inventory. 
It’s true some premium publishers aren’t willing to sell their best inventory in an open marketplace, where they have to sell their premium inventory to the highest bidder (even if the ad is low-quality or doesn’t fit the publisher’s brand). However, high-quality inventory can still be bought with programmatic technology , and that’s through private marketplaces, a new platform that has been gaining popularity in the past few years. According to eMarketer, by 2016, spending on private marketplaces is expected to reach $3.31 billion. In this type of platform, the publisher and advertiser must agree to do business together, which means that both can be selective about partnerships: a win-win for both the advertiser and publisher. 
While the concept of programmatic advertising may still be new to some, data has proven there is a vast opportunity for both publishers and advertisers. To keep up with this growing trend, it’s imperative for brands and agencies to understand the benefits and familiarize themselves with current data driven models. It’s time for the industry to get on board with programmatic.


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