Commentary

'Programmatic Is Not A Strategy'

In the past several weeks, I’ve heard that exact quote from several different sources. It’s usually followed by the line, “It’s a tactic.” I agree with the first statement. Sometimes I agree with the second statement.

To me, programmatic is just a process. And it can be used strategically or tactically. Often though, it is used unstrategically and tactlessly. But it has nothing to do with the process. It has everything to do with how people use it.

The reason I’m blogging about this today, is because I’ve been seeing a burgeoning backlash to “programmatic” and the “it’s not a strategy” knock is part of it. It shows me that people are trying to distance themselves from programmatic processes, because they either don’t like them or don’t understand them. Or more likely, don’t understand how to use them in a way that will create value for what they’re doing.

That’s a shame, because programmatic processes are like any other tool in a brand’s or agency’s chest. To imply it has little, or low-level value, well, it’s really a questions of how you use the tool.

On the flip side, programmatic processes are not a panacea. They should not be used as a “set-and-run” approach to marketing. Personally, I think the best uses of it are when they help people do what people couldn’t otherwise do without them.

I gave an example -- a small, low-level one -- that MediaPost is beginning to leverage in the “What’s The Frequency, Kenneth” post the other day. It’s a good one, because it’s easy to understand the role a programmatic process, and the data it is processing, informs and helps people to do something better. Something we might not otherwise be able to do without it. In this case, limit the number of times our readers might see a piece of MediaPost content.

Like a lot of programmatic processes, I think they should be tried, tested, and refined based on their results. Sometimes they should even be abandoned because the results are low, or leading the user down the wrong path.

As to whether they are tactical or strategic paths, is totally up to how people use them.

I will tell you, we are developing at least one very strategic use of programmatic processing and data, and if we ever get to turn it on, I think it will change trade journalism forever. Because it will enable us to tell you something we couldn’t have told you about without it.

Stay tuned. We are working on that process.
1 comment about "'Programmatic Is Not A Strategy'".
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  1. Ed Papazian from Media Dynamics Inc, November 6, 2015 at 1:25 p.m.

    I tend to agree with you, Joe, but the real problem, when it comes to the media buying claims made for programmatic---"undreamed of targeting efficiencies", total "transparancy", etc---- is that they don't seem to prove out in a way that benefits both buyer and seller---at least not for TV. While there are areas where programmatic TV time buying might be workable, which I've mentioned elsewhere, attempts to rationalize its universal application keep floundering because other, non-linear and less easily quantified factors are involved and these concerns aren't addressed by the system's advocates. In short, it's not just a "tactical" or a "strategic" question---and both probably apply---but it's also a matter of the limitations of the concept. Garnering target group eyeballs at the lowest cost by scanning all avails, including many that might be overlooked by time pressed human buyers, is fine, but that, alone, is not good enough, or even relevant, for many TV branding advertisers. And, in the same vein, allowing a computerized buying system to cherrypick your schedule, while driving for the lowest CPMs, is not very appealing to many sellers of premium TV content.

    On the other hand, your example of using a computerized analysis to determine how often to repeat articles in Media Post, makes perfect sense as it has no downside and covers all of the relevant variables.

    I also agree that even the most rigid and opinionated branding advertisers should at least experiment with programmatic regarding TV and, for that matter radio and magazine buys, to see whether the added cost of setting up and staffing such systems are offset by benefits gained in analyzing data, administering  or servicing buys, and, under varied circumstances, even making certain kinds of buys.

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