Publisher direct driving programmatic spend, according to new report
Publisher direct accounts for 39 per cent of overall spend on programmatic advertising, according to a new report published by The Drum, in association with Oracle Data Cloud.
The Drum Market Insight Report: Programmatic Spend Edition
The Drum Market Insight Report: Programmatic Spend Edition surveyed the attitudes of marketers towards programmatic spend, and their preferences when it comes to buying data to fuel their ad campaigns.
The survey found that marketers have growing expectations when it comes to programmatic spend, including data. Fundamentally, marketers expect further transparency from their programmatic solutions, driven by increasing budget shifts into digital marketing and the need for more effective targeting.
Cost remains the driving concern when it comes to data purchase, with 50 per cent citing it as the biggest barrier to buying data to improve programmatic campaigns.
Additionally marketers struggle to pull meaning from their metrics as many still rely on click through rate, a metric that many indicated is not desirable. Oracle’s Senior Director of Data Science Mike Schumacher explains, “CTR is not a particularly useful indicator of performance. At Oracle Data Cloud, we’ve found that it’s rarely an indicator of qualified interest as the overwhelming majority of active consumers simply don’t click, even if influenced by the advertising.
Furthermore, clicks can be readily gamed via bot traffic and other fraudulent tactics. Progressive marketers have placed an increased emphasis on sales-based metrics or, at a minimum, more advanced measures of engagement than simple CTR.“
The survey also discovered the potential for budgets to be further constrained in the UK (and in other markets) with the recent referendum decision to exit the EU. Marketers are feeling the impact of Brexit as 37 per cent of respondents have been asked to reduce or review their media spend as a result of the referendum.
Education was raised as a remaining important problem in programmatic advertising, with almost of fifth of respondents believing that understanding of data application was an issue. The terms Demand Side Platform, Supply Side Platform and Agency Trading Desk were unfamiliar to approximately a quarter of respondents.
Per Aruna Paramasivam, Head of Audience Partnerships at MediaMath said, “The advertising technology industry grew at such an exponential rate, it’s no surprise there is a lack of understanding among media professionals on how to use these new technologies.”
The full report is available to download here.