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BizReport : Advertising archives : March 06, 2017

Expert: How programmatic direct is changing

Direct advertising is not new for either B2C or B2B businesses. But, adding a programmatic layer to direct advertising efforts is helping more brands compete while still controlling ad budgets. Erik Requidan of Intermarkets explains how programmatic direct solutions can help brands.

by Kristina Knight

Kristina: What trends are you watching in the programmatic direct space?

Erik Requidan, VP of Programmatic Strategy, Intermarkets: Clearly header bidding, which enables a lot of programmatic direct, is evolving. The industry is chattering about the move to server-to-server, but those integrations will not be quick. The move to server-to-server will be slow, as the ecosystem works to improve exchange-to-exchange cooperation and development teams and engineers are backlogged.

I am keeping my eye on the demand side platforms (DSPs) that are continuing to press closer to direct publisher relationships.

Kristina: How has programmatic direct changed in the past year?

Erik: In the past year, buyers have increased their spending in transparent, "easy to buy in" environments. Some advertisers have announced they now almost exclusively spend with publications through programmatic direct.

Publishers are seeing the benefit of this shift. They have better yield management of inventory and pricing. Publishers are embracing the positives of header bidding, especially when they integrate with a minimum of one to two partners.

Compared to a year ago, more publishers are allowing programmatic to be prioritized within ad servers as equal to direct buys. Ad networks are evolving into header bidding integrations.

Kristina: What changes are you expecting in the coming months?

Erik: In the coming months, I expect a continued acceleration of spending in programmatic direct deals -- private deals, automated guarantees and true Private Marketplace (PMPs). Traditional header bidding will continue to grow, along with early server-to-server integrations.

Programmatic will compete or be prioritized alongside traditional direct media buys. In turn, publishers will work better with media buyers to secure and establish more direct deals across all advertising inventory. While programmatic will pick up, those human relationships will remain important.

The relationship between buyer and seller or advertiser and publisher, will continue to move closer together. This will allow each party to take back power from the intermediaries, which will spark additional consolidation of several players, such as old ad networks, ad exchanges and traditional supply side platforms (SSPs) that have not evolved.

The digital advertising industry will begin to see an uptick in server-to-server integrations, but many will still remain focused on header bidding for traditional set up.

Tags: advertising, direct mail, direct mail trends, Intermarkets, programmatic direct mail

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