Digital Media is the Future but What Does That Mean for Agencies, Advertisers and Consumers?
The rise of digital media may seem like an obvious evolution within the media industry. However, ad agencies initially had low expectations for it. They now need to become experts on this platform which opens the door to new technology, measurements and data. Some of the issues facing agencies include, understanding and integrating new technologies in order to offer their clients the best options and to compete with often technologically advanced companies created in the digital era.
Programmatic buying automates the buying and selling of media through, open auctions, private auctions, unreserved fixed rate deals and programmatic guaranteed deals. This includes Real Time Bidding (RTB) where marketers bid to show an ad based on data as the user looks at the page. DSPs are another new technology that automates the buying and selling of digital ads making the process cheaper and more efficient. This creates a challenge for agencies because advertisers set up their own ad exchanges via a DSP platform. However, agencies may also set up their own trade desks to provide their advertisers with the same service so they don’t have to invest in the technology. Programmatic buying may seem to remove humans from this process but it is really changing their role from negotiating and buying media placements to analyzing and manipulating data.
With so many more data points and disparate technologies used to track them, agencies are facing new challenges during the reconciliation process. If agencies want to get paid on time they need software to help manage and integrate different media campaigns. Additionally, digital media is always available and unless you need a subscription anyone can access it. Advertisers used to only spend money with reputable media outlets but now turn to internet companies as well that provide data to prove their reliability.
New ad technology allows advertisers to target a consumer based on their search history. This big data approach uses programmatic advertising, the machine based media buying and it uses native advertising. Native advertising blurs the line between editorial and content, integrating ads with articles. This has changed the consumer experience, as the consumer multi tasks on multiple platforms they are often bombarded by web banners and relinking to ad sites which can be intrusive and frustrating. On the other hand, native advertising is essentially hidden blending in with news articles, perhaps not as disruptive but it can be hard to tell if what you are reading is fact or an ad.
Digital media offers new opportunities to streamline the advertiser/agency relationship but it also brings challenges in maneuvering the new landscape. Luckily, new technology is available and if properly adopted, it will update the older processes. While consumers may feel overly targeted by advertisers, they are ultimately in control. They have more opportunities to find exactly what they want and have more choices.