Agencies Plan For More Programmatic, Still Unsure They Trust It

Advertising agencies are planning to increase their use of programmatic ad tech in 2015, but that doesn’t mean they fully trust it.

In fact, only about one-in-four agencies (24%) trust programmatic to properly execute ad orders, with one-third saying they are still “unsure” if they trust the tech.

Even with trust concerns, more agencies are planning on using programmatic, with 37% saying they will carry out between 10-20% of their ad buys via automation, up 30% from Q3 2014.

The data comes from a recently released agency survey conducted by Strata during Q4 2014.

The trust factor is on the up and up. Strata’s previous report -- from Q3 2014 -- noted that 20% of agencies trusted programmatic, which was up 153% from Q2 2014. And Strata noted that the number of agencies that don’t trust programmatic is decreasing.

It’s still telling, however, that despite the meteoric rise in programmatic advertising, more agencies remain on the fence about it compared to those that fully trust it. However, it’s clear that even those that don’t fully trust it are still using it to execute ad buys. It’s putting the cart before the wheel.

Agencies cite the ability to reach targeted audiences as the top benefit of programmatic (41%), while another 39% said inventory quality is their top concern, followed by transparency in the marketplace (34%).

Despite the concerns and teetering trust, it’s clear that programmatic technology is not a death knell for agencies, as some once feared. Over half (53%) of agencies surveyed said they see their business growing in 2015 compared to 2014. Nearly half (45%) of agencies saying they plan to hire more staff, which Strata says is the highest percentage they’ve ever recorded in their agency surveys.

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1 comment about "Agencies Plan For More Programmatic, Still Unsure They Trust It".
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  1. Thees Peereboom from Peereboom Consultants BV, February 16, 2015 at 6:45 a.m.

    Are we talking advertising or media agencies here?