• by Kurt Fliegel , Perianne Grignon , December 12, 2016

A recent report by the Association of National Advertisers (ANA) has reignited the evergreen debate about the issue of transparency in the advertising industry. Claiming that non-transparent business practices are pervasive, the report underscores the importance of collaboration and visibility to ensure marketers understand the flow of dollars and agency remuneration, both locally and globally.

Transparency has particularly been a challenge for programmatic advertising, where opaqueness has been inherent in the way in which agencies and suppliers go about the process. Historically, it hasn’t allowed for granular data visibility for audits or performance benchmarks.

The spotlight on transparency puts programmatic at an interesting crossroads, with marketers now reconsidering how best to operate in an opaque ecosystem in order to ensure the best value for their budgets.

Programmatic in brand marketing

Once a highly innovative but niche tactic used primarily in direct marketing, programmatic has flourished in recent years and is increasingly moving beyond media buying to become part of the customer experience, solidifying its strategic importance. The market is primed to grow 20% annually, according to some estimates, and its use has expanded in brand marketing.

Today, every agency network has a significant programmatic offering, and its use is spreading to a wide variety of media channels including digital video, television and radio. As its availability in premium inventories increases and personalization capabilities grow, thanks to data and dynamic creative optimization, programmatic will become a main brand touchpoint. As marketers work to define the strategy and execution of programmatic, they must evolve their thinking from a media plan to an audience plan.

But the technology and engineering behind programmatic is highly complex, forcing marketers to rely heavily on their partners to steward the finances and quality of such activity. As a result, brand marketers used to having visibility into their media spend when they request to do so, are finding it difficult to achieve transparency across their programmatic supply chains.

Taking control of programmatic media buying

Firms that want to take greater control will need to think through how they approach programmatic. There are three key steps that brand marketers can take to ensure they can adapt programmatic media buying to be better suited to their business objectives and contribute to broader marketing success:

1.     Audit the programmatic supply chain. This review should be comprehensive, covering major spend areas including media, digital, marketing, CRM, content and social media agencies. The aim should be to have a clear understanding of where each and every dollar of marketing spend goes, and why it goes there. This process should include media performance benchmarking against cost and quality metrics.

2.     Undertake an agency and supplier contract compliance audit. It’s important for marketers to understand exactly how their suppliers are representing their interests in the market. This review should encompass the wider business ecosystem to confirm partners are adhering to all relevant policies. It is a vital step in protecting brands.

3.     Consider controlling certain parts of programmatic in-house.  Many marketers have decided that certain elements of programmatic and data-driven marketing need to be handled internally. Doing so requires preparation and staffing, and a clear vision of what those technologies need to provide for the business. Developing a detailed strategic plan for programmatic and keeping it up-to-date to reflect the latest industry developments is critical.

Programmatic is an important part of the future of brand marketing, representing an effective way for marketers to execute media programs. However, the ANA report has made it clear that the status quo cannot continue if marketers want to take more control of how their programmatic budgets are spent to drive greater success. The opportunities are enormous, requiring a multi-pronged approach.

By taking an objective review of the third-party supply chain, executing contract and financial audits, and strategically considering which components to bring in-house, organizations can move swiftly forward on their broader marketing transformation journey.