Programmatic is still very sexy.
After coming to the fore in 2013, it remains a key—if not the key—buzzword of 2014 (and, yes, we’re only two months in). But beyond buzz, programmatic is a legitimate force in advertising.
Not only will it account for just under 30 percent of all display ad spend by 2017, already,85 percent of advertisers are using it, in some form. We also can’t ignore the very real benefits with respect to streamlined workflow, cost efficiencies, and transparency between partners. So, it’s not a matter of who will ultimately use programmatic, but how quickly everyone will use it.
And we’re seeing this play out in the market. Just recently, Federated Media and Demand Media both made headlines, deciding to completely forego their direct sales efforts to focus solely on the still young, but increasingly successful, programmatic and RTB category.
The news fit neatly into the ongoing, polarizing direct versus programmatic debate, while heightening that schism and making the sexy, all-programmatic approach appear to be better suited for the long-term. But, while this was a very compelling narrative, it just isn’t true.