Home Podcast Podcast: Why Is Programmatic Adoption Taking So Long?

Podcast: Why Is Programmatic Adoption Taking So Long?

SHARE:

Subscribe to AdExchanger Talks on iTunes, Google Play, Spotify, Stitcher, SoundCloud or wherever you listen to podcasts.

Outside of search and social, the adoption of programmatic advertising has been slower than some expected. In many corners, manual processes have stubbornly held on and gummed up the long-heralded automation of the media buy. What’s going on?

This week on the podcast, Hearts & Science Chief Data Officer Megan Pagliuca talks about the unrealized potential of programmatic. Specifically, she identifies three roadblocks to greater adoption.

No. 1: Client KPIs. Some clients are shooting themselves in the foot by setting the wrong KPIs for their partners. For instance, it’s still common to require that a certain percentage – often 90% or 100% – of impressions be viewable. Pagliuca says, “If you’re thinking about a percentage rather than the ‘cost-per’ you end up buying more direct IO buys where publishers will show non-viewable impressions but they just won’t charge for them. Switching to a cost-per-viewable impressions [model] rather than a percentage viewable is important.”

No. 2: Frequency Management. All ad servers, most DMPs, dashboards and even DSPs report on average frequency. “When you report ‘on average,’ it’s like putting your head in the oven and your feet on the freezer and saying on average you’re fine,” Pagliuca says. And the problem is even more acute in television.

No. 3: Org Structures. This one applies to both agency and client. “You historically … have specialized programmatic organizations, and they’re usually behind the digital team or the historic direct IO team,” Pagliuca says. That created friction since direct buyers, still in the pole position, began to fear the future and resist change, which stymied the downstream programmatic teams.

Also in this episode: Has programmatic tech under-delivered?

Must Read

AI Is Redefining Premium Content – Which May Not Be A Good Thing

At AdExchanger’s Programmatic AI conference, media experts discussed how the rise of AI-generated content is changing the industry’s understanding of “premium” content.

The Big Story Podcast

Prog AI Live: AI’s Slippery Slop

Recorded live in Las Vegas at Prog AI, the AdExchanger team tackles a tricky question: As AI floods the feed with chaotic, addictive content and people engage with it, what does “premium” even mean anymore?

The Programmatic Auction Is Changing In Real Time – Here’s How

Two decades after the first RTB auction, programmatic is more complex than ever – and that’s before you even consider generative AI.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Publicis Acquires LiveRamp In A Major Shakeup For Indie Data Collaboration

Hundreds of exasperated and unexpected ad industry phone calls were made on Sunday, as agencies and ad tech vendors discussed the fallout of Publicis Groupe’s $2.2 billion acquisition of LiveRamp over the weekend.

Finger connecting dots on a cork board network concept

These AI Agents Want To Handle All The Annoying Parts Of Media Buying

Meet Kovva, a new AI ad tech startup tackling the unglamorous gruntwork that programmatic has never fully automated.

Felipe Cuevas for TelevisaUnivision

We Went To Eight Upfronts This Week. Here's What We Learned

Upfront week is officially over. In case you missed any of the dog-and-pony shows — including Chappell Roan belting out “Pink Pony Club” during YouTube’s Broadcast — don’t worry; we’ve got you covered.