Warc, 20 August 2014
LONDON: UK publishers are taking widely differing approaches
to programmatic advertising, as evidenced by the pronouncements from two
different sources this week.
At the Daily Telegraph, senior executives felt the need to
write to advertisers reassuring them of the newspaper's commitment to full
transparency in this regard. While at magazine publisher Dennis Publishing, the
company's head of digital sales warned of the risk that programmatic trading
would lead to standard ad formats becoming "too commoditised".
The Drum revealed the contents of a letter from the
Telegraph publisher's sales and trading director and its client director in
which they addressed the concerns surrounding online ad fraud, including the
viewing of ads by bots.
The new Telegraph Customer Charter, they explained, was a
guarantee to all advertisers that its trading, whether programmatic-based or
direct sales would be fully transparent and accountable and would deliver real
readers.
Dennis Publishing, however, remains wedded to direct display
advertising, which accounts for 70% of revenue; programmatic takes just 4% and
native advertising the rest.
Gary Rayneau told The Drum that Dennis currently offered the
option of programmatic trading only in conjunction with direct spend.
"I think it will become the default way of buying
impressions if the focus is direct response … and I completely understand the
legitimacy of programmatic from that perspective," he explained. For
brand-led advertising, however, he felt that direct buying would continue to
have a role.
But he added that if it came to the point where display
advertising became too commoditised, "we'll get to the stage where we
won't run standard formats and we will just run partnerships and native
placements".
He pointed to the example of Buzzfeed, "the brand that
everyone's talking about right now", which does not run display
advertising.
"There are definitely plenty of other ways to make
money in this market, you don't have to just run straightforward advertising,
you don't have to be fully programmatic," he concluded.
Data sourced from The Drum; additional content by Warc staff
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