I found the following graphic provided by eMarketer to be
informative as to the efficacy of marketing spend across different channels.
Digital channels, particularly those of Social Media and Search, seem to be viewed
as performing the best, while old media work horses like TV, radio scored at
the bottom of marketers’ perceived effectiveness.
Social Media and Search had matching efficacy scores, with
respondents voting them 31% and 38% extremely and very effective, respectively.
Mobile was viewed as the next most effective, though what’s interesting is that
the fourth place media channel goes to Programmatic ad buying.
Programmatic is viewed by marketers with skepticism given
its complexity, and high amounts of hidden fees and ad fraud. The busied slide
we saw in class of all the programmatic intermediaries hints enough at the
opportunities to for incremental costs.
Separately, the marketplace for programmatic ad buys is fast
moving from a second price to first price auction market, thereby increasing
the clearing price.
While this is great from an inventory owner/publisher point of
view as the resultant clearing price will be higher leading to more revenue, ad
buyers will now have to pay more. What’s particularly concerning is that for ad
buyers it’s not entirely clear what markets use first versus second price. A
quick read on why first price is bad for the industry can be found at the
following:
Despite the known fraud and unnecessary costs, programmatic
still ranked the fourth best channel to spend ad dollars, indicating the
promise of the channel. Cue the IAB. As the self-regulatory organization that
is currently providing standards for the market, they can help the functioning
of this growing marketplace by setting market standards and kicking bad (and unnecessary)
actors out of the ecosystem. Such transparency and rules are known to encourage any budding marketplace. It will be interesting to see how they facilitate
or inhibit growth of programmatic, which if improved should improve price competitiveness
across all media channels.
Graphic sources:
No comments:
Post a Comment