Programmatic Advertising Pros and Cons
With programmatic ad spend at an all-time high and far outperforming other mediums, it means there’s no downside, right? Wrong! Although technology has come a long way and the programmatic of today is far superior to those campaigns of yesteryear, risks and downsides still exist. In the next section I’ll look at the pros and cons of programmatic advertising, what you can to do mitigate risks, and tips on ways to maximize performance.
I’ll start with the bad news first. That’s how everyone likes their news right?
Cons of Programmatic Advertising
Beyond Your Control
The human element is less present in programmatic, which depending on who you ask, is an argument in favor and against it. Most programmatic inventory is segmented into “boxes” inventory an advertiser can buy from. For example, a coffee segment may contain data for anyone who recently purchased from Nespresso, patronized a Starbucks, and searched for a fully automatic espresso machine. These segments are often determined by an algorithm or AI.
Advertisers and media buyers also can’t see exactly what’s in these segments. So, as an advertiser you may not want to serve ads to someone who just bought an espresso machine for their home. It would be more lucrative to take market share from Starbucks and show ads to people who visited a Starbucks near your location.
The good news is, with programmatic advertising from Coppersmith Digital you don’t need to segment because we use unstructured data. We can provide segmented data, if you don’t want human control, or we can build customized campaigns to know exactly who your ads are being served to.
Programmatic isn’t exempt from fraud
If you’ve ever run Adwords and suspected your competition was clicking your ads to cost you money, you know what it’s like to be the victim of advertising fraud. Since programmatic is about touch and you pay on a CPM basis, fraud is a major concern. Some websites pad their traffic statistics with bot traffic, and unfortunately those bots don’t buy goods and services from anyone. Furthermore, without the right platform you could be paying for these “empty” views.
Luckily, at Coopersmith Digital we have ways to minimize fraud by using machine learning to understand what a “real” user looks like and model how they act before a transaction takes place. This allows us not only to identify fraud, but also identify low converting “real” users and optimize them out of campaigns.
Low-cost inventory often comes with low-quality content. This may result in a brand being featured on a site that doesn’t align with the brands image. This could be as simple as a high-end luxury product being displayed on a site intended for those looking to repair their credit; or as damaging as having a craft beer ad displayed next to a story about a fatal drunk driving accident.
Luckily, Coppersmith Digital offers filters and layers to block unwanted inventory, as well as other brand safety features that help keep your programmatic dollars from being spent in places your brand wouldn’t see a fit.