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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