Why advertisers shouldn’t be afraid to pay more for programmatic ads | Econsultancy

Why advertisers shouldn’t be afraid to pay more for programmatic ads | Econsultancy.

Author: Roy Eosemarin is Head of Analytics and Data Science at Infectious Media and a contributor to Econsultancy.

Source: https://econsultancy.com/blog/65846-why-advertisers-shouldn-t-be-afraid-to-pay-more-for-programmatic-ads

The biggest misunderstanding about programmatic advertising is it’s a way to buy ads at a lower price, when it’s really about using data to determine the value of ads and pay accordingly.

Recently there have been a number of large brands shifting digital budgets to programmatic advertising.

However, some of these brands seem to be approaching programmatic in a similar way as offline, by focusing on buying at the lowest price.

Advertisers need to be looking at programmatic differently because by using direct buying tactics they are missing an essential opportunity.

Programmatic advertising allows advertisers to use data to target ads more effectively, reducing wastage and increasing impact. When delivered expertly advertisers can achieve much more value even by paying a higher price per impression.

To show this we looked at two separate campaigns for a client, one with direct response objectives and the other brand objectives, and charted the price paid for media.

Although using fundamentally the same technology, these two campaigns have been set up very differently in terms of data used, algorithms and optimisation strategy.

The direct response campaign was designed to maximise conversions, the number of people who see the ads who go through and buy online. Whereas the branding campaign was set up to maximise impact with the client’s target audience.

Conversion vs cost

Looking at the ‘Conversions vs Cost’ chart from the direct response campaign the first trend you can see is programmatic inventory varies dramatically in cost.

This underlines how premium publisher inventory is becoming more available programmatically, with premium prices to match.

The general trend here is of an increasing rate of converting users from an increasing cost. This targeting is achievable through programmatic because of the ability to predict the value of single impressions with the intelligent use of data and buy accordingly.

So for the advertiser even though some of the media costs are tens of times greater than the lowest price, the value of the ad is similarly higher, translating into the same (or less) cost per sale.

For those familiar with programmatic, this is to be expected. There is more of a question when it comes to valuing brand campaigns as there is no easily tracked conversion.

The measurement of brand advertising depends on the advertiser’s objectives and is often many layered. It can be based on anything from audience demographic and reputation of the publisher, to contextual relevance.

However, as out-of-view ads have no value, a measure of viewability is fundamental to the impact of all brand campaigns.

Viewability vs cost

Looking at the ‘Viewability vs Cost’ chart from the branding campaign it’s again evident that with premium publishers now selling programmatically there is a large variance in the cost of media.

Also there an equally large spread in viewability, from a fleeting glimpse to view-times of multiple seconds. However, there is a definite trend here of paying more for impressions with longer view-times.

Paying more for ads of higher value seems quite intuitive. Two years ago we were the first specialist to use viewability technology to improve client campaigns, but it is still not standard in most programmatic advertising.

We’ve recently integrated viewability into our bidding technology so we actively predict the viewablity of ads before we buy.


Programmatic advertising is different to offline and direct digital buying, as it allows advertisers to better understand their audience.

Through a mixture of insight, technology, testing and learning advertisers can find out what their audience responds to and shape their advertising accordingly, for both performance or branding objectives.

So whether you are looking to increase conversions or increase the impact of your advertising don’t prioritise price over value as sometimes the most expensive buys are the most one effective ones.

What will happen with marketing technology in 2015? – Chief Marketing Technologist

What will happen with marketing technology in 2015? – Chief Marketing Technologist.


Extract of:  http://chiefmartec.com/2014/11/will-happen-marketing-technology-2015/?_tmc=ikVT-mhlzpmGJIs1TIjdrGxuhUhJgFjABsLKMAvrZqQ

So here are 7 not-quite-predictions that I believe about marketing technology in 2015:

#1. Marketing technologists will multiply. Whatever label you want to put on them, the number of technical professionals working in the service of marketing is clearly on the rise. I’m hearing the term “marketing technologist” used more frequently, and I expect that it will gain more traction in the year ahead. Where will these previously nonexistent marketing technologists come from? Many will migrate from IT, where a subset of those professionals are eager to apply their technical talents in the pursuit of more exciting, customer-facing innovations that are recognized as driving revenue, not merely containing expense.

#2. The marketing technology landscape will grow, not shrink. Yes, there will continue to be big deals that feed the counter-narrative of consolidation. For instance, if Microsoft does fulfill my prediction, that will be a consolidation. However, the number of new entrants will continue to outpace the number of exits (happy or otherwise). As Neeraj Agrawal of Battery Ventures said in his Q&A with me, we’re just in the 4th inning of the game. There’s moneyThere’s opportunityAnd it’s never been easier to create software in the cloud.

I can make a promise — stronger than a prediction — that the 2015 version of my marketing technology landscape will have more companies represented than 2014. And yet it still will be woefully incomplete.

The next three factors, however, will make this incrementally more manageable.

#3. The ISV ecosystems around major platforms will flourish. 2014 was a remarkable year for the public support that many of the major enterprise marketing cloud providers — Adobe, IBM, Marketo, Oracle, Salesforce.com — gave to their ISV communities. Marketo recently celebratedover 400 third-parties officially in their LaunchPoint ecosystem. The message: one company can’t do it all. I believe these platform strategies will accelerate in the year ahead, and they will make it easier to find and integrate the right capabilities from a very large field of more specialized vendors. I expect that we’ll also see some impressive innovations in the depth of these plug-and-play integrations — they’ll fit into a platform’s user interface and data services features much more seamlessly.

#4. The adoption of “marketing middleware” will increase. Tag management systems, data management platforms (DMPs), customer data platforms (CDPs), cloud app connectors, enterprise service buses (ESBs), etc., have all had a terrific year and are poised for more growth in 2015. These software solutions provide a layer of marketing data management that spans many different systems. When implemented well, they make heterogeneous marketing stacksmore manageable — which also enables brands to avoid being cornered by a single vendor. Greater IT talent applied to marketing technology management will help proliferate these more advanced and adaptable architectures.

#5. The line between software vendors and service providers will blur. Everyone in the marketing technology field should read Software vs. Services: Is There Really A Difference byMartin Kihn of Gartner. This is so spot-on. And with Publicis’s pending acquisition of SapientNitro, the stakes for the major agency holding companies to embrace this blurring have ratcheted up considerably.

Having reflected on marketing-as-a-service (MaaS) since my debate (in the comments) about itwith Gerry Murray from IDC last month, I think he’s right: it’s going to be a major channel for marketing software. But not just for the big marketing clouds. This will be a tremendous channel for innovative and niche marketing applications — including specialized software programs, everything from custom algorithms to cross-system “glue,” that will be developed by those service providers themselves to create non-commoditized competitive advantages.

Those last three — ISV ecosystems, middleware, as software/service convergence — all help make a rich and diverse landscape of marketing software more accessible to marketers who don’t want to get bogged down in a bunch of complex integrations themselves. Effectively, they can now offload that technical effort to vendors, middleware architectures, and service providers. It begins to turn the vast scale of the landscape from a bug into a feature.

#6. Several big companies will become new entrants in the marketing tech space. Dell’s entrance is the most recent example. I’ve already made my prediction for Microsoft. Other classic tech giants that I would keep an eye on include Cisco, Citrix, Intel, Intuit, and Xerox. I also believe that Amazon, Facebook, Google, LinkedIn, and Twitter will significantly expand their software offerings to marketers — LinkedIn’s acquisition of Bizo is Exhibit A — which will start to impact the competitive dynamics with marketing clouds from the “traditional” enterprise software companies.

#7. All of marketing technology will be hot — but some categories will be really hot. 2014 was the year of content marketing and predictive analytics, which will remain big. Next year, I think we’ll see five other categories gain traction. Four of them — sales enablement, post-sale customer marketing, marketing finance, and marketing talent management — are all about hybridization between marketing and other departments: sales, customer service, finance, and HR, respectively. The fifth will be innovations related to the Internet of Things (IoT). Yes, I can’t but help cringe a bit when I say that, as I know there’s a lot of hype around IoT. But the reality is that with ubiquitous connectivity and device proliferation, the field of hybridized online/offline experiences is almost — almost — ready to blossom.

Actually, I believe there’s also a sixth category that will be on fire in 2015 — interactive content. I feel a little sheepish saying that because, well, my company, ion interactive, offers interactive content marketing software (you can read the story of our pivot here). So you could certainly argue this is my “hope” more than a prediction. But, if you’ll indulge me for a moment, it’s evident that content marketing is becoming a victim of its own success: the noise of passive content (the world-wide web of white papers and webinars!) is deafening, steadily reducing its efficacy in engaging and educating prospects. Interactive content changes the rules of that game, by letting marketers produce more permanent customer experiences instead of just more transient customer communications. And it’s not just me. I’ve been seeing a lot of new competitors emerge in the category. There’s going to be some really interesting innovations around interactive content in 2015. In keeping with the hybrid theme of the other five categories, think of this as the hybridization of communications and experiences.

Consommation vidéo multi-écrans et achat programmatique (Servicesmobile / Forrester)

Source: http://www.servicesmobiles.fr/changement-leadership-consommation-video-multi-ecrans-achat-programmatique/

Forrester_videoSelon une étude Forrester, 70% des annonceurs en Europe pensent que la publicité vidéo digitale va augmenter en efficacité et permettra aux régies médias d’augmenter leurs revenus au cours des trois prochaines années. C’est une étude réalisé pour le compte de Videology « Les plateformes publicitaires multi-écrans accélèrent la convergence TV-Digital », l’étude montre que la transformation de la consommation vidéo digitale sur PC et Mobile est perçue comme une opportunité par l’ensemble des responsables publicitaires en Europe.

Les 5 points à retenir de l’étude :

1. Atout n°1 de la publicité vidéo digitale pour les annonceurs : le ciblage
La capacité à cibler des intentionnistes précis est le bénéfice n°1 apporté par la vidéo (devant les audiences et contenus médias). Cependant, l’étude pointe quelques différences par pays en Europe.
– La France a classé les « vidéos interactives » à égalité avec le ciblage,
– L’Espagne voit dans la vidéo en-ligne sa capacité à toucher des consommateurs peu exposés à la télévision, à diffuser des messages adaptés à différents moments de la journée, et le contrôle de la couverture comme ses principaux avantages,
– Pour le Royaume-Uni, le bénéfice majeur est la possibilité de mieux mesurer et optimiser le ROI. C’est une particularité qui souligne la maturité du marché de la publicité vidéo dans ce pays.

2. Les agences comptent fusionner l’achat d’espace et le média planning
63% des agences ont prévu de fusionner l’achat d’espace TV et digital à l’avenir, mais 51% ont déclaré qu’elles continueraient d’opérer chaque plate-forme média séparément. On reste donc assez éloigné d’une adoption forte.

3. Les grands médias misent sur le streaming dans leurs stratégies de deuxième écran
72% des responsables médias qui ont répondu à Forrester pensent que l’engagement des consommateurs avec le contenu sur un deuxième écran va augmenter significativement au cours des trois prochaines années.

4. Le GRP restera le standard de mesure des campagnes publicitaires mais doit évoluer
Bien que la mesure reste un défi, Annonceurs et agences s’accordent sur le fait que le GRP (Gross Rating Point) est et restera le standard de la mesure de la publicité vidéo multi-écrans. 75% d’entre eux estiment que l’industrie devrait standardiser une norme GRP Vidéo pour en augmenter l’efficacité.

5. La technologie doit s’adapter au ciblage multi-écrans.
Plus d’un tiers (42%) des répondants ont exprimé leur besoin de disposer d’une plate-forme technologique unifiée qui leur permette de cibler les consommateurs de plusieurs façons. Les trois principales caractéristiques qu’ils recherchent dans cette plate-forme sont : cibler l’audience de plusieurs façons, de suivre les consommateurs à travers plusieurs écrans, et enfin diffuser des publicités sur mobiles.

L’analyste de Forrester Consulting souligne : «Les habitudes de consommation TV et vidéo sont en pleine mutation. Il est temps pour les médias, annonceurs et les agences d’adopter de nouvelles approches envers la vidéo. Comme il est admis que ces changement profiteront à la fois aux médias et aux annonceurs, tous les acteurs de cet écosystème devraient se concentrer sur leurs points d’accord et travailler ensemble pour résoudre les questions encore en suspens.»

L’essor de la consommation vidéo multi-écrans en parallèle à celui de l’achat programmatique va nécessairement entraîner un changement de leadership dans le secteur de la publicité et nul ne sait encore quels seront les leaders qui vont émerger de cette rupture.

Face à cet essor du streaming, les analystes de Forrester recommandent aux annonceurs de commencer à tester dès aujourd’hui de nouvelles stratégies, notamment essayer les nouvelles possibilités de ciblage socio-démographiques possibles. De leur côté, les agences, situées entre les médias et les annonceurs doivent jouer un rôle de facilitateur dans cette transition vers le multi-écrans. Les médias doivent pour leur part aider les annonceurs à mettre en place des opérations multi-écrans, notamment en leur fournissant des données sur le comportement de leurs audiences, en imaginant de nouveaux modèles publicitaires. Enfin, les sociétés technologiques vont jouer un rôle bien plus important que par le passé dans cet écosystème publicitaire. Ces derniers devront développer des plateformes agnostiques pour cibler et diffuser la publicité quel que soit l’écran. Ils vont aussi devoir monter en compétence sur la collecte et gestion des données et algorithmes d’analyse comportementale.

Un accroissement du rôle de la technologie qu’Anne de Kerckhove, Directrice Générale Europe de Videology, souligne : « On observe aujourd’hui une forte demande pour une normalisation de la mesure et du ciblage d’audiences sur tous les écrans. Spécialiste de la vidéo programmatique et de la convergence TV-web, nous sommes dans une position unique pour atténuer les défis auxquels le marché fait face et être un accélérateur pour une adoption généralisée. Si les développeurs de technologies participent activement, nous pouvons fournir des solutions qui propulseront les revenus médias online et augmenteront l’efficacité dans la façon dont la publicité est achetée, vendue et diffusée. »

72% des responsables médias pensent que l’engagement des consommateurs avec le contenu sur un deuxième écran va augmenter au cours des trois prochaines années.

La pub et la convergence TV-Digital selon Videology.

La plateforme de ciblage d’audience publicitaire vidéo Videology vient de publier l’étude « Les plateformes publicitaires multi-écrans accélèrent la convergence TV-Digital» réalisée par Forrester auprès de 500 annonceurs, agences et groupes médias en Europe (France, Royaume-Uni, Allemagne, Espagne, Italie). En 5 points, on y apprend notamment que l’atout n°1 de la pub vidéo digitale pour les annonceurs européens est le ciblage. La France mettant pour sa part ex-aequo les vidéos interactives et le ciblage.

Par ailleurs, 63% des agences interrogées indiquent avoir prévu de fusionner l’achat d’espace TV et digital alors que 51% déclarent qu’elles continueraient d’opérer chaque plate-forme média séparément.

De même, 72% des responsables médias pensent que l’engagement des consommateurs avec le contenu sur un deuxième écran va augmenter « significativement » au cours des trois prochaines années.

Et pas d’inquiétude pour le GRP, selon l’étude. Il restera le standard de la mesure de la publicité vidéo multi-écrans. Et même 75% des annonceurs et agences estiment que l’industrie devrait standardiser une norme GRP Vidéo pour en augmenter l’efficacité.

Enfin, 42% des personnes interrogées expriment le besoin « de disposer d’une plate-forme technologique unifiée qui leur permette de cibler les consommateurs de plusieurs façons », souligne l’étude. Les trois principales caractéristiques qu’ils recherchent dans cette plate-forme sont : cibler l’audience de plusieurs façons, suivre les consommateurs à travers plusieurs écrans, et diffuser des publicités sur mobiles. 70% des professionnels interrogés déclarent qu’il sera «important» voire «très important» d’être en mesure d’acheter de l’audience de manière globale, sur tous les écrans, y compris TV et en ligne au cours des trois prochaines années. L’étude complète est téléchargeable ici.

How will programmatic buying evolve to better serve native ads and other non-traditional content? (source: http://www.business2community.com/)

A great point of view by , Published August 27, 201
full source: http://www.business2community.com/brandviews/newscred/know-programmatic-buying-means-native-ads-0988259#rMDsRrVhw3eDlPQF.99

In fact, you’re probably already being served content that uses this technology to decide what you see. Business Insider released a report recently noting it as one of the fasting growing drivers of content on the web, particularly when mobile and video are involved. According to the report:

  • Real-time bidding (RTB), the key piece of the programmatic ecosystem, will grow at a compound annual growth rate of 42% between 2013 and 2018.
  • RTB spending on mobile, video, and display ads will account for over $18.2 billion of US digital ad sales in 2018, up from just $3.1 billion in 2013.

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Descriptions of programmatic advertising or buying can be both confusing and varied – but at heart it simply means that pieces of software are talking to each other, and using data about the who, where, and when to buy and sell what you see.

In other words, it’s about using data to find the right audience at the right price at the right time.

The implications are deep and long-reaching, and it’s not just for the traditional banner ad either: formats like television are starting to move toward programmatic technology, too.

Related Resources from B2C
» Free Webcast: Build Better Products by Identifying and Validating Your Riskiest Assumptions

That may all sound appealing – but it’s early, and even the sheer number of pieces that need to be connected suggest that automated and programmatic buying of non-traditional content is still in the experimental phase. Included in those pieces are demand and supply side platforms, as well as legacy ad exchanges that are geared towards very specific types of ad units, and content.

Another problem is that the amount of data available and variety of players involved comes with (at times convoluted) concepts like first, second, and third party data. It makes for a complex environment where signal is easily confused for noise, and of course there’s the potential for fraud on a large scale, particularly because, like micro-trading on the stock market, the buying and selling happens at very high speeds and in high volume.

What kind of content fits into programmatic buying?

So far it has been mostly focused on serving things like display and banner ads, but it’s likely that programmatic will eventually encompass any sort of content.

One of the most interesting angles involves the potential for data informed programmatic buying developed for native advertising.

This is still largely in a trial and error phase – the primary reason for this has to do with the difficulty of aligning content with a specific publication, and feeding back data that allows you to adjust what you create over time. If you’re just one buyer dealing with one advertiser or publication, this is a fairly manual but doable process. Applying this at scale, which is what programmatic buying by its nature would require, is much more difficult (though not impossible) to achieve.

At NewsCred we’ve had a few experiments with native advertising, including one that wasn’t so successful…

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While it didn’t elicit as spectacular a response as the Atlantic’s native ad for the Church of Scientology, it was a bit hard to swallow, and we were forced to go back to the drawing table.

Among the things we learned: understanding and using the language and tone of a publication is a must have for native ads.

We also know from experience that storytelling, context, and ideas matter, and that the quality of the content has to be good enough to fit in with the other stories the publication is running.

Once we figured out how to better align ourselves with Adweek and their audience, we tried again:

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This time the reception was much better, and neatly dovetailed into one of our most successful partnerships – a visual storytelling project with Getty Images.

How will programmatic buying evolve to better serve native ads and other non-traditional content?

One thing that will help is transparency around pricing, as well as making it clear where and when content is running.

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Native ad platforms like Syndicateare starting to address the transparency issue with pricing directories, and while it’s not yet a complete solution, it is an important step forward.

Ultimately, programmatic buying platforms will need to evolve in a few areas in order to ensure that the process is scaleable:

  • Aligning with the language and tone of a publication, as in the Adweek example above, is difficult to achieve at scale with programmatic buying.

In addition to targeting via demographics – when making ad buys, programmatic platforms will need to find ways to align data from automated and semi-automated content discovery. In other words, helping buyers both place content and understand where it might get the most traction or response, since that has implications for what they license and create on the front end.

  • Actionable, clear reporting and feedback is a must have.

Because no two companies are alike – and their content will always vary – strategies for programmatic buying will probably always need to have at least a human hand at the very beginning. Having useable reporting will be crucial for buyers or brands when creating their programmatic strategy.

  •  Providing some degree of control and transparency to all parties involved – including end audience, publishers, advertisers, platforms, and brands – is essential.

For now, placing native ads into a programmatic strategy is something that brands can do – but they are wisely being careful about its application so far, since getting this right is ultimately about providing content that audiences actually want.

And that’s worth more than anyone can imagine.

Read more at http://www.business2community.com/brandviews/newscred/know-programmatic-buying-means-native-ads-0988259#rMDsRrVhw3eDlPQF.99

Aislelabs Engage: analyser le comportement des consommateurs dans le magasin physique et au sein des sites et applications (Instore retargeting via mobile)

Le regargeting en magasin fait décoller le marché du marketing mobile-%post_id%.

Les acteurs de l’ad tech et les marketeurs commencent à réaliser l’importance du marketing digital in-store et surtout du lien qu’il est nécessaire de faire entre le magasin physique et les applications et sites mobiles, un maillon encore faible de la chaîne malgré son importance. Un exemple très récent de cette prise de conscience est le partenariat que la plateforme de publicité programmatique SiteScout vient de signer avec AisleLabs, un spécialiste du retargeting in-store.

Le retargeting in-store est une façon un peu grossière d’appeler le retargeting qui permet aux annonceurs de communiquer avec leurs clients et prospects pendant et après qu’ils soient passés dans le magasin.

L’outil Aislelabs Engage permet d’analyser à la fois le comportement des consommateurs dans le magasin physique et au sein des sites et applications en ligne. Se servant des technologies Wifi, GPS et notamment iBeacon – qui identifie où l’internaute se trouve dans le magasin au rayon près – AisleLabs permet aux marketeurs d’envoyer des messages personnalisés à ces cibles. L’outil fournit une analyse sur les profils des visiteurs, segmentés en fonction de leurs différents comportements de recherche et d’achat.

Suite à ce partenariat, un commerçant utilisant Aislelabs Engage avec son application mobile, par exemple, pourra mieux comprendre le comportement de son client dans le magasin et utiliser la plateforme RTB de SiteScout pour le recibler sur Internet, dans son smartphone ou tablette, ou sur les réseaux sociaux comme Facebook.

« Notre vision a toujours été de connecter le comportement du consommateur en ligne et dans le monde physique. A travers cette nouvelle offre avec SiteScout, nous sommes encore plus près de rendre cette idée réalité. Le concept de recibler les visiteurs d’un magasin physique, une fois qu’ils sont en ligne, vient combler une lacune dans le marché », affirme Nick Koudas, co-fondateur et CEO d’AisleLabs.

– See more at: http://www.ad-exchange.fr/le-regargeting-en-magasin-fait-decoller-le-marche-du-marketing-mobile-15307/#sthash.70bzHHFf.dpuf

84% of US ad execs use programmatic to purchase display ads, while six in 10 used the technology to buy mobile ads.

It’s no secret programmatic buying is quickly expanding throughout the digital ad ecosystem—and beyond. A June 2014 survey by AOL Platforms found that 84% of US ad execs surveyed used programmatic to purchase display ads, while six in 10 used the technology to buy mobile ads. Programmatic video was nearly as popular.

And spend is going up across many channels. Respondents indicated they planned to increase programmatic spending on display, video and mobile ads the most in the next six months. And while 8% of respondents said they were buying TV ads programmatically already, 12% said they intended to up spending in this area in the coming months.

Publishers, as well as brand advertisers and agencies, reported a number of significant benefits of programmatic technology. Tops on the brand/agency side was economic efficiency, cited by more than three-quarters of respondents, while two in three found the targeting beneficial. Organizational efficiency came in third at 57%. On the publisher side, the top three were the same, but more tightly grouped and with targeting slightly ahead.

There are challenges too—and big ones. Transparency was a problem for 72% of brand executives and nearly as many agency executives, while most publishers did not see it as an issue. All three segments surveyed agreed inventory quality was a challenge.

Allie Kline, CMO of AOL Platforms, pointed up the overall speed with which programmatic technology has been adopted by publishers and advertisers alike across a number of platforms, as well as its transformational potential in the digital ecosystem.

But more will be required from parties on both sides of the equation to take programmatic to the next level. “It’s about making sure there’s a relationship beyond just dumping inventory onto a platform,” she told eMarketer—key to making brand and agency concerns about transparency less problematic.

She also noted that programmatic should be looked at as a technology that could “match the right brand with the right publisher,” not just a tool for getting the best possible bids on inventory

– See more at: http://www.emarketer.com/Article/Programmatic-Moves-Further-Toward-Premium-Future/1011129/2#sthash.QlLcgLda.dpuf