Commentary

Programmatic: Still in the "Wait a Minute" stage

Programmatic media platform might be still in its “wait a minute” period, according to Kevin Rettig, senior manager, of personalization & customer analytics for Accenture, speaking at MediaPost’s “The Reckoning” event.

He says for every dollar spent on programmatic there are platform, technology, verification and other costs; you are left with a lot less. Factoring in non-viewable ads, including ad fraud, you have more waste. Rettig says what remains is around 25 cents actually going to media. “That’s probably a bit more negative view,” says Rettig. “Certainly as media auditors, this is something that we see.”

Media agencies making many ad-tech investments could also be a concern for clients, he says. Additionally, he says many media agencies are “walking away from trading desk model in name, and in actual practice.” He says many agencies are setting up their own programmatic capabilities. Agencies are also “blinding” marketers with tools, with “not a lot of cohesion” for clients.

Rettig still believes the jury is still out when it comes to shifting programmatic duties — such as in-house efforts by P&G, Netflix, and Allstate, for example. They have had "some level of success” in a test and learn thinking.

Overall he believes marketers have “low confidence, but high spend” when it comes to programmatic media. He adds: "If we are equating programmatic with just the ability to buy an banner ad more cheaply, then that’s disappointing."

"But if you are talking about true personalization, aligning all your data as marketer -- first, second, third party data, past campaign, CRM, all touch points [as well as] on- and off-line retail experiences, website experience, all these things part of a consumer journey and ultimately a sale and a relationship, not just paid media —  then you have something there."
Next story loading loading..

Discover Our Publications