Programmatic ads not a solution for pharma

KEY TAKEAWAY: Only 28% of the respondents said they were satisfied with the state of their programmatic ad measurement, while 66% said of marketers said they found it “very challenging.”

It’s estimated that programmatic advertising will account for 80 percent of all digital display advertising in 2017.Yet, recent headlines and pronouncements by leading brand marketers highlight the significant limitations and potential pitfalls of programmatic.. Among other issues, this technology–driven ad buying process has resulted in notable, image–sensitive ads for brands appearing within or alongside offensive rich media content, fake news, as well as non–contextual and inappropriate online channels.

[inlinetweet prefix=”” tweeter=”” suffix=””]Today’s online ads are not about getting in front of as many people as you can, they are about getting relevant ads in front of highly targeted people[/inlinetweet]. Programmatic buying usually produces pretty low engagement rates. Standard display advertising ads bought programmatically have very low CTR’s, about 0.18% of standard media, according to Google’s analysis. In other words, you get what you pay for. If you want cheap ads, you can expect very little in terms of effectiveness.

Programmatic buying also comes with an exceptional risk of fraud. The ease of programmatic buying means that, essentially, anyone can buy and anyone can sell. This leaves an open playing field for bad actors. The most common examples of ad fraud are: Bot traffic(i.e. non-human automated plays, clicks, etc.) and non-viewable ads (ex. An interstitial or video is buried in a feed somewhere and the user never actually even sees it). [inlinetweet prefix=”” tweeter=”” suffix=””]In 2014, bot traffic accounted for 56% of all website traffic and cost the industry about $6.3 billion.[/inlinetweet] One of the biggest reasons ad fraud is rampant is because it’s not exactly illegal, which means low-risk and high-potential for scammers.

How can DTC marketers measure programmatic ads?

1ne: Set up a custom analytics dashboard to measure bounce rate, pages viewed and time on site for programmatic ad buys.

2wo: Challenge your agency to improve metrics for ALL online ad buys and demand that they provide better summary dashboards.

3hree: Develop and test online ads before launching them

I’m not a believer in programmatic ads. [inlinetweet prefix=”” tweeter=”” suffix=””]The best way to improve online ad performance is by developing and testing online ads the same way you test TV ads.[/inlinetweet]