The new face of programmatic: efficacy over efficiency
When ad tech vendors and agencies toss out the word “programmatic,” the word “efficiency” is rarely too far behind. The promise of programmatic advertising is that it speeds along the buying process — and cuts down on transaction costs.
But many in ad tech are trying to shift the discussion away from “efficiency” and toward “efficacy.” Automating the ad display process is useless, the argument goes, if those ads aren’t relevant to the people they appear in front of. The same goes for ads that Web users never see or ones that appear in front of people too frequently.
“When we talk about efficiency, we’re missing the issue,” said Josh Jacobs, president of digital platforms and partnership, at Omnicom.” Efficiency isn’t an end that matters in any way, shape or form. Efficacy is where the promise of programmatic truly kicks in.”
“It’s just not about the cost of the media. It’s really what the impact is on performance,” said Brian Decker, managing director of client leadership at Mindshare.
Brian Silver, vp of ad platforms at Yahoo, also agreed that marketers should be looking beyond automation as a reason to get on board with programmatic, which is more so about how the unification of technology, algorithms, data, analytics help improve campaigns. Efficiency is the byproduct of programmatic, not its end point.
To this end, Yahoo in particular is selling advertisers on the power of its data-driven advertising dashboard, which is focused on bridging campaigns across multiple channels and platforms, not lowering rates.
The other issue with “efficiency” is that it has a different definition depending on who is talking about it. For advertisers, “efficiency” often means paying less for the same number of impressions. Agencies hear it and think of how it can help reduce their head count or help them focus on bigger, more strategic projects. And for publishers, “efficiency” is a word to be feared because, when an advertising partner uses it, they’re typically looking to pay less for more.
But all of those definitions might be missing the larger point.
“The reason that programmatic is so powerful is that it allows us to finally stop thinking about how we make media cheaper or how we cut more resources or lower rates,” Omnicom’s Jacobs said. “Instead, it gets us to start thinking about how do we actually deliver real advertising results that drive our clients’ businesses,” he said.
‘Influencer deals are being paused’: As Facebook boycott begins in earnest, influencer marketing feels a sting
The latest move to pause influencer marketing comes as marketers are not only reconsidering where their ads appear and the kind of content they appear next to, but as they work to figure out how they can better support Black creators and Black-owned businesses following the Black Lives Matter (BLM) protests.
As Facebook boycott continues, here’s a look at what major marketers were spending on Facebook and Instagram
To get a sense of how much advertisers are pulling back from Facebook, Digiday reached out to ad-tracking firm Pathmatics. The company provided estimates for how much advertisers spent on the platform during July 2019 as well as from July 2019 to 2020.
Member Exclusive‘Performative posting’: As agencies share their equality values online, staffers say they have to do much more for Black employees than post
Agency employees and execs say agencies need to do more than make statements to be better for Black employees.
SponsoredFour ways to adapt to the changing publisher ecosystem in 2020
By Neal Sinno, general manager Americas at GeoEdge For marketers, 2020 started out with so much promise — but this changed rapidly as the industry faced a global epidemic head-on. Not only did our own daily routines come to a screeching halt, for many of us our professional lives did as well. Almost as quickly […]
‘Don’t want to piss off customers’: With manufacturing and exporting snarled, some DTC brands are adapting their advertising
Media buyers say that supply chain hiccups have caused them to pause or significantly reduce media spending anywhere from two weeks to five weeks for some DTC brands low on product inventory.
Beyond remote work: Bringing serendipity back to the office
This article is part of the Future of Work briefing, a weekly email with stories, interviews, trends and links about how work, workplaces and workforces are changing. Sign up here. Kai Micah Mills had been working in a different state from his work partner for years. More recently, though, his partner, Ben Adamsky, made the move […]