August 14, 2022

Here's What Indian Publishers Must Know About Programmatic Advertising

Programmatic advertising is one of the major trends in advertising that’s been overhauling multiple tiers of the global media indu

Programmatic advertising is one of the major trends in advertising that’s been overhauling multiple tiers of the global media industry. Given the Indian advertising industry has slowly but steadily mirrored some of the biggest global trends in Marketing and Advertising, it's only a matter of time that Indian advertisers catch on.

For years, a majority of the marketers were relying on their Ad agencies to provide them with a report around consumers, but now they are paying more attention to programmatic as they want to understand the impact of their spends on real business outcomes. This involves getting rid of outdated metrics such as average CPMs or clickthrough rates (CTR) in favor of more performance-based qualifiers, such as whether a digital ad led to an actual sale or qualified lead or not.

This change in expectation from the client’s end has overhauled the relationship between traditional media agencies and advertisers and often involves the shift from a fee-based model—where agencies are paid a percentage of the annual media spend to a simpler annual contractual service model.

However, not all are gung ho in the much-hyped programmatic advertising industry. Some of the biggest global names in marketing are already calling out opaque practices in the ad tech sector - whether it's in-housing, data, or pricing transparency along with improved measurement capabilities. Some concerned marketers are seeking ‘algorithmic transparency’, citing the opaque practices of some of the industry’s largest names including Google.

The emergence of header bidding—a newer way for online publishers to collect ad auction bid requests to improve their revenues and the complexity it creates means most marketers need to pay more attention to their ad spending now. Some of these concerns have led leading media buyers to dump real-time bidding (RTB) on ad spaces in favor of more direct deals with premium online publishers like Google, Facebook, and Twitter.

To sum it up, advertisers across the world are demanding more control and direct contact with publishers they are buying from - whether it's Facebook, Google, or other reputed content publishers, and as more CMOs gain a better understanding of data, they would want to control the spend in a DIY format as compared to having agencies that used to leverage this technology for several clients, and this will open a new phase of opportunities for publishers across the world.

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