October 26th, 2016 | Read more articles from 2016 or Visit the News Archive
Choozle White Paper Explores Agencies’ Programmatic Adoption Tendencies
Choozle, a self-service programmatic advertising platform, on Wednesday announced the results of a white paper exploring ad agencies’ adoption of programmatic technology. Among the findings of the paper, entitled “Adoption of Self-Serve Platform Operation by Advertising Agencies,” 46% of marketers surveyed outsource their advertising trafficking and ongoing campaign management; 37% of agencies are undecided about whether they trust programmatic buying to execute their ad orders; and 72% of media executives predict their business will be moderately or massively disrupted by digital transformation in the next 12 months.
Notably, the 37% figure illustrates the extent to which agencies require more education around programmatic tactics and technologies. Some agency holding companies, including Publicis, have embarked on programmatic education programs.
Data for the paper was provided by Strata Marketing, Inc. and traces the history of technological disruption in the digital media industry and analyzes how programmatic advertising platforms are impacting the advertising ecosystem. The report outlines the benefits of self-service solutions and the operational challenges, which often restrict in-house platform operation.
“Like most industries, digital media is in a constant state of disruption by software and platforms. This disruption and inevitable automation paved the way for the $22 Billion and rapidly growing programmatic advertising ecosystem. Despite the clear advantages (transparency, performance, control, and value), the majority of agencies are still reluctant to ‘pull the levers’ and operate a media execution platform in-house,” Andrew Fischer, Choozle co-founder and CEO, told Real-Time Daily via email. “The data shows that most agencies cite real and perceived challenges around resources, cost, and risks. However, with platforms getting simpler and more affordable, these barriers are removed and enable agencies to reap the rewards with less risk.”
The findings underscore findings from the recent K2 report: “Transparency in the media industry is more important than ever. Agencies of all sizes are feeling pressure to provide their clients with highly accountable and effective media executions,” Fischer said. “Until recently, however, only large players could build and/or operate trading desks while smaller players outsourced this key operation.”
The report also examines the impact that cost, intermediation, and transparency have on the growing number of marketers adopting programmatic solutions for digital advertising campaigns. Using Strata’s quarterly agency survey, the report illustrates that the investment costs of initial platform setup and operation (both human resources and time) have decreased, making it more cost-efficient for agencies to bring programmatic advertising in-house.