Friday, July 28, 2017

Programmatic ad buying is declining as native advertising increases

As digital advertising continues to evolve, advertisers have begun shifting away from programmatic advertising due to concerns around brand control and fraud. “The number of advertisers running programmatic ad campaigns declined by 12% year-over-year (YoY) in Q1 2017, according to MediaRadar.” Although programmatic ad campaigns have several benefits, including cost savings and ability to scale, brands lose much of the control around where ads are shown. Concerns around the quality of ad partnerships has become even more relevant due to numerous incidents where ads have been displayed next to inappropriate content.

With these programmatic concerns, advertisers have shifted to native advertising. “The number of ad buyers purchasing native ads increase 74% YoY in Q1 2017, the largest increase of any ad format measured. Native ad formats outperform traditional ad units, and even though they’re more expensive, they garner higher click-through rates.” Larger brands, such as JPMorgan, are placing greater importance on controlling the ad narrative by manually vetting and selecting their ad partners. So not only will the shift to native advertising allow for greater control, it will also see greater ROI for advertisers if executed strategically.

Programmatic advertising platforms have a place in the digital marketing landscape, yet unless greater controls are implemented, the large advertisers (and their dollars) will be shifting to methods that offer greater visibility and governance.

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