Rachayeta Singla Rachayeta Singla
Rachayeta Singla is the Content Marketing Manager at Sigmoid, working on content marketing domains, inbound marketing and PR operations.

Rachayeta Singla
She works as Content Marketing Manager in Sigmoid.

5 Threats every Programmatic Advertiser deals with

Change is always welcomed as an upgrade from age old business practices. However, as the time between evolutionary cycles has reduced, the amount of changes in various industries and marketplaces has far outpaced our ability to keep up with them. The programmatic advertising industry is no exception to this trend.

With fast evolving methods, practices and expectations of programmatic advertising industry, the buying and selling parties involved are trying to keep up and provide the best digital advertising experience across the globe. Most problems they face in this process, arise due to a lack of information or poor technology that does not match up to the demands of the digital marketers today, causing them to face unique challenges and take certain strict actions.

Let us take a look below at the various threats and challenges the new age programmatic advertisers face today and what is causing them.

Advertisers cutting back number of DSPs

Advertisers have always relied on DSPs and their inventory options to get the best possible bid slots available for maximum outreach. But with terms such as Bots and Ad Fraud surfacing, marketers have been pressing to know where their ads are being showcased, what is the exact number of people viewing them and if all their bids are even genuine.

Marketers have been questioning the effectiveness of their ad spends and trying to identify the exact ad placements. Thus, advertisers have been making a conscious effort to stop displaying ad on low quality websites and removing ineffective DSPs from their bid inventory lists to target a more optimized approach to marketing.

In-app has viewability or verification problem

An average user spends 58 percent of their time with digital media on mobile apps. Naturally, programmatic advertising industry saw a massive shift to mobile advertising to reach their customers where they are present. Enforcing viewability on mobile apps has been a challenge that most ad buyers face today.

Unlike web and desktop apps, there is no ip address cookies or javascript tags that a viewability solution can track since all mobile app ads are only for display. In app viewability solutions generally depend on MRAID, the interactive advertising Bureau’s standard for rendering and serving mobile rich media.

However, even with all the pixel mapping and comparing the ad size and geometric positions, it has its limitations. There is no accurate measure to track and enforce viewability in app in mobile advertising, leaving advertisers guessing their campaign’s effectiveness.

KPIs get out of hand

Change is usually good, but it takes a lot of effort. According to a recent research by Mediapost, the digital marketing spend is set to go up by 12-15% this year. In contrast to this statistic is the fact that most marketers have problems tracking or measuring the ROI of their digital campaigns.

There are many culprits that contribute to this scenario – lack of proper digital advertising guidelines, fast changing programmatic scenario to continuously shifting metrics and frequent introductions of new platforms. Thus, it becomes difficult to identify the best possible strategy for each campaign. Even the best campaigns are constantly in a state of flux, trying to achieve in depth optimization for their ad campaigns. As a result, each marketer chases multiple KPIs that vary from one day to another, making it difficult to stick to any particular marketing mix.

Programmatic Advertising

Publishers oversell audience

Poor inventory management is one of the leading causes of oversold publisher inventory. With outdated record keeping practices on many sell side platforms, a lot of old inventory is available for buying when it doesn’t even exist. Now, it is not necessary that all publishers deal with poor marketplace platforms. Some publishers go rogue and advertise inventory which they do not own, leading to a lot of mistrust between buyers and the sellers.

A lot of oversold inventory factors also surface later, when the marketers are preparing for their campaigns. Poor communication among the sales team can lead to oversold inventory where a few inventory slots are awarded to one advertiser when they were promised to another. This causes billing problems later for both the buyers and poor or negligible returns from the oversold inventory.

Buyers lack visibility into price auction dynamics

The programmatic model was built to follow a set of rules to enable better advertising practices. There were DSPs who would request bids from advertisers and SSPs who would request publishing spots from publishers. And then, there would be exchanges between them to accommodate the two. The buyers had to bid based on previous win instances and background data provided by helpful DSPs that would help them win an ad spot on their desired website.

In hindsight, you would expect things to get easier with more transparent bidding platforms being set into place. However, the bidding algorithms have taken a turn for the worse. SSPs have started to act like second exchanges themselves and let publishers decide the winning bids. It has further increased the lack of visibility into price auctions. Buyers are now worried if they are outbidding themselves for the same spot via a different SSP.

It is evident so far that what the Programmatic advertising industry needs today is more transparency and real-time interactive analytics to provide a clearer picture of available inventory, advertising trends and manage all KPIs better. By introducing more communicative and embedded analytics features, any programmatic platform or process should be able to weed out many of the problems mentioned above and provide a smooth advertising experience to the new age digital marketers.

We, at Sigmoid, hope to provide that very same experience to all buy side, sell side and exchange parties involved to scale new heights in the programmatic advertising industry. Reach out to us for a free demo today and start changing your programmatic experience for the better.

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