The Future Growth of Programmatic Media Buying
Like others within the digital landscape, the programmatic media buying industry will face hurdles. However, it continues to gain momentum as the demand for security and transparency increases.
Programmatic buying will likely focus on the podcast industry and the established data that can stem from those opportunities in the future. RedCircle is a platform that provides flexibility to podcast owners, who can even select categories for their ad space (Riverside. fm team, 2022).
Programmatic media buying has already started to infiltrate the podcast industry. It is only a matter of time before massive sums of money are acquired based on this media channel. In 2022, programmatic media buying usage increased by 20% (Rahmani, 2022). Considering the popularity of podcasting, the numbers will provide insights quarterly based on the effectiveness of ad space obtained in this way.
The programmatic buying industry’s main priority should be offering clients the utmost security. Given the overwhelming amount of fraud and large sums of capital exchanged minute-to-minute, there should be a sense of urgency regarding this scenario.
The demand for transparency echoed by Marc Pritchard of Procter and Gamble in 2016 indicates that large conglomerates such as P&G can effectively sell products without the influence of programmatic buying. However, since then, Marc Pritchard has seen the results of ethical programmatic buying and advocates for a more transparent system. Pritchard credits programmatic buying for an increase in intelligent data interpretation. As of late, P&G is operating at 80% capacity with programmatic buying (Baar, 2020).
Retail stores are not mutually exclusive in avoidance of theft elimination. The programmatic buying industry, among many others, will remain a lifetime victim of fraudulent activity to some capacity. However, there are ways to mitigate these risks. First-party data security is a step in the right direction, especially as browser cookies will soon be a tale as old as time.
If social media channels remain infiltrated with fake accounts and bots, it remains difficult for brands to differentiate between authentic and counterfeit engagement. There could be substantial growth for the programmatic buying industry if remarkable algorithms make fraud nearly impossible.
The graph below communicates a relationship issue as it relates to talent. The speed at which teams produce work is the most obvious challenge faced within the agencies. As a result, in-house creative teams hire freelancers or partner with agencies to address specific business concerns as needed. The feedback that programmatic buying and data collection offers is advantageous but comes with difficulties. This overlap is a byproduct of the technology and ways that advertising, programmatic buying, and publishers evolve together to create a beneficial work environment for all parties involved.
Recent studies suggest that five out of ten dollars are spent on digital advertising and set aside for programmatic messaging (Coey, 2022). Overall, tremendous growth can come from programmatic buying within the digital ecosystem in the future.
References
Baar, A. (2020). Pritchard: P&G is taking control in the media supply chain — and so can other marketers. Marketing Dive. Retrieved 28 April 2022, from https://www.marketingdive.com/news/pritchard-pg-is-taking-control-in-the-media-supply-chain-and-so-can-oth/585856/.
Coey, S. (2022). Doceree offers glimpse into trends of ‘programmatic marketing’. Fierce Pharma. Retrieved 28 April 2022, from https://www.fiercepharma.com/marketing/doceree-offers-glimpse-into-trends-programmatic-marketing.
Glenday, J. (2022). Media agencies turn to Boots, AO & Very as Amazon faces display ad competition. The Drum. Retrieved 28 April 2022, from https://www.thedrum.com/news/2022/04/27/media-agencies-turn-boots-ao-very-amazon-faces-display-ad-competition.
How to Monetize Your Podcast with Programmatic Ads. Riverside.fm. (2022). Retrieved 28 April 2022, from https://riverside.fm/blog/monetize-your-podcast-with-programmatic-ads.
The 10 Most Influential Data-Driven Advertising Executives Of The Decade (2019). Retrieved from: https://www.adexchanger.com/ad-exchange-news/the-10-most-influential-data-driven-advertising-executives-of-the-decade/
