How Programmatic Advertising Pulled The Trigger On (Dis)Trust
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The document discusses the challenges and trends in modern marketing, particularly focusing on programmatic advertising, where a significant portion of spending is lost to various non-media costs and inefficiencies. It highlights the move towards in-housing programmatic capabilities to gain control and transparency, while also emphasizing the importance of data management and personalized marketing. It predicts a shift away from traditional ad tech towards solutions directly serving marketers' needs, enabling better personalized marketing strategies.
How Programmatic Advertising Pulled The Trigger On (Dis)Trust
- 1. Welcome To The “Wait A Minute”: How To Reconcile Conflicting Signals In Today’s Marketing World Kevin Rettig January 19, 2016
- 2. WELCOME TO THE “WAIT A MINUTE” • Tying together trends in the modern media buying landscape • What’s a marketer to do?
- 3. AGENCY REBATES AND KICKBACKS…?
- 4. THE DISAPPEARING PROGRAMMATIC DOLLAR For every dollar put in to Programmatic… ~60% could be going to non-media costs • Platform fees • Data costs • Management fees Note: These fees are going to be part of any Programmatic buying, but the mark-ups on the fees needs to be monitored Advertiser is left with ~ $0.25 per dollar of their Programmatic spend doing what they intended The other 40% goes to media, but 30- 50% of those impressions are typically waste • Non-viewable ads • Bot & fraudulent impressions • Incorrect targeting AGENCY TRADING DESK
- 5. HOLDING COMPANIES INVESTING IN AD TECHS
- 6. AGENCIES WALKING BACK FROM THE HOLDING COMPANY TRADING DESK MODEL v
- 7. AGENCIES NOW OFFER MANY DIFFERENT TOOLS, PROGRAMMATIC JUST A PART Death By A Thousand Tools… Audience Analytics Tool
- 8. BRAND-NAME AD TECH COMPANIES STRUGGLING TO GET PROFITABLE
- 9. AD SPEND EXPECTED TO KEEP HUMMING ALONG AT +4-6%, PROGRAMMATIC HIGHER
- 10. TAKEN TOGETHER… • Low confidence, high spend • Obfuscation and confusion • What’s a marketer to do…?
- 11. “IF YOU WANT A JOB DONE RIGHT… DO IT YOURSELF”? Why you would… • Transparency, control, agility • Organizational development Why you wouldn’t… • Lack of organizational structure and/or talent • Lack of agenda capacity Programmatic In-Housers
- 12. IS THE PROGRAMMATIC IN-HOUSING TREND REALLY HAPPENING?
- 13. IS THE PROGRAMMATIC IN-HOUSING TREND REALLY HAPPENING? If by “Programmatic” you mean… … Then no, not really.
- 14. IS THE PROGRAMMATIC IN-HOUSING TREND REALLY HAPPENING? If by “Programmatic” you mean corralling and optimizing data for personalized marketing… … Then yes, absolutely! CRM & Touchpoint Data 1st Party Data Past Campaign Data Consumer Profile, Behavior, Intent , Exposures & Engagement 3rd Party Data Paid Media Buys Service/CRM Experiences Online & Offline Retail Experiences Informs Targeting, Messaging and Experiences Enabling Technologies • Data Management Platform (DMP) • Analytics Platforms 2nd Party Data SEO/SEM, Social & Email Website Experiences
- 15. AD TECH IS A SUBSET OF MARKETING TECH “Over the next five years we will see ad tech supplanted, albeit short-circuited, by technology and companies that directly serve marketers and their enterprises -- rather than ad industry ecosystem intermediaries, where most ad tech today is centered.” - Dave Morgan, CEO, Simulmedia It’s no longer a game of using technology for an ad transaction, it’s a game of using data, technology and processes to enable all personalized marketing functions.
- 16. Welcome To The “Wait A Minute”: How To Reconcile Conflicting Signals In Today’s Marketing World Kevin Rettig January 19, 2016