Monday, November 11, 2013

Growth of Programmatic Buying Comes with Challenges

Digital media buying has quickly become a complex and extremely developed market.  A significant piece of this market has emerged in the form of programmatic ad buying.  With this method, companies bid in a marketplace to receive online ad exposures.  Then advertisers automatically place the ads based on preferences of the company advertising.

Programmatic ad buying has a number of benefits for advertising company, first and foremost being ease of use.  For a company trying to figure out the complex world of digital advertising, programmatic buying provides a more accessible interface.  However, after this initial purchase, how programmatic ads operate is a little less clear.  

The most important and sometimes risky angle to programmatic buying is that it is prohibitively expensive and effectively impossible to control where and how 100% of your ads will show up.  As mentioned in a recent article on Digiday, a handful of companies were alarmed to hear that their ads ran next to a video featuring a beheading posted by a Mexican drug cartel.  For Nissan and Sherwin-Williams, two companies that had unfortunate ad placements next to the video, it was an embarrassing and potentially costly mistake.

This incident underlines one of major drawbacks to programmatic buying, and it serves as a warning to companies when undertaking extensive online advertising platforms.  If a company chooses to use programmatic buying and intends to run a campaign with +100,000 ads, it comes at the risk that those ads may end up next to something the company did not want them to, no matter what the digital advertising marketplace they are using promised.

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