By Carl Kalapesi
AB releases Publisher’s perspectives on programmatic as first part in educational series
Programmatic buying and selling of advertising, real-time bidding, and marketing automation is changing the way we transact digital media. Though numbers are very sketchy, by some accounts over 20% of all digital advertising is sold “programmatically” – and it’s growing rapidly.
There is significant confusion in the marketplace around the meaning of terms like “programmatic”, “RTB”, “programmatic direct”, “programmatic premium”, and other verbiage, often being used interchangeably. New technologies are emerging which are creating significant value, but there is also a lack of clear technical standards to ensure interoperability across different platforms. Buyers and sellers are concerned with the limited transparency and number of vendors involved in the programmatic transaction. And programmatic raises internal, organizational challenges for brands and agencies, and particularly for publishers with their existing direct sales teams and incentives.
Agencies and their clients have a lot to lose if programmatic isn’t implemented coherently: a set of technologies that aim to create market efficiencies could, instead, create a fragmented, illiquid marketplace if each media agency insists on creating its own proprietary marketplace with its own standards and its own technologies.