ANA: 79% of Advertisers Used Programmatic and 31% Expanded In-House

Fortune 1000 client side marketers interviewed by the Association of National Advertisers (ANA) are heavily betting on programmatic marketing, despite the high fraud rate that is associated with programmatic media buys. Our recently introduced character Programático López is right to take time think on how the increase of programmatic buying and the propietary use of data by brands is causing seismic shifts in the advertising and marketing world.

According to a  new survey published by the ANA, the number of marketers using automated ad buying systems to purchase advertising has more than doubled over the past two years, fueled in part by marketers’ desire to better target their customers. The survey also reveals that marketers are taking steps to better protect themselves from some of the issues, such as having a more hands-on approach to programmatic. About 31% of the companies polled said they have expanded their in-house capabilities to manage and oversee the function.

The study, which polled 128 marketers and was conducted by research firm Forrester, found that 79% of advertisers have made programmatic ad buys over the past year. That is up significantly from a similar study that was done in 2014, which found only 35% of the advertisers had used programmatic buying.

ANA represents many of the country’s largest advertisers such as Procter & Gamble, General Motors and AT&T.

Advertisers are increasing their use of automated buying even though 70% of respondents that did programmatic ads last year were concerned about higher levels of bot fraud in programmatic buys.

Advertisers are increasing their use of automated buying even though 70% of respondents that did programmatic ads last year were concerned about higher levels of bot fraud in programmatic buys. Bots are computer programs that mimic human web-surfing and artificially boost site traffic. In January, the ANA estimated that marketers wasted about $7 billion last year on online ads that people did not see.

Fake Web traffic isn’t the only thing marketers are anxious about, the study showed.
The majority of advertisers polled also expressed concerns about the lack of transparency in how much an ad actually costs when buying via an automated system and the “dearth of information about whether an agency reaps financial gains from the media seller by using the client’s funds,” the ANA said.

The ANA is currently trying to bring more visibility to the market and is investigating agency transparency. Marketers worry that some agencies have agreements in place with media sellers that reward them for directing more of their clients’ budgets to specific vendors.

The new survey does reveal that marketers are taking steps to better protect themselves from some of the issues, such as having a more hands-on approach to programmatic. About 31% of the companies polled said they have expanded their in-house capabilities to manage and oversee the function.


Editorial Staff @portada_online

Portada Staff

MORE FROM PORTADA

Dentsu Aegis Network Acquires Agency Global Mind

Dentsu Aegis Network Acquires Agency Global Mind

This is the third Latin American acquisition this year after the Japanese giant acquired M8 and White Label in April. Global Mind will triple the headcount of iProspect and strengthen Dentsu Aegis' pan-regional reach. 


4 Truths and One Lie About Multicultural Marketing According to Mel Rodriguez & Co, Starcom, Walton Isaacson…

4 Truths and One Lie About Multicultural Marketing According to Mel Rodriguez & Co, Starcom, Walton Isaacson…

We talked to Melissa Rodriguez, Dana Bonkowski, Albert Thompson, and Teylez Perez about the future of brands in an increasingly multicultural world. Reports estimate that by 2065 Hispanics will account for one-quarter of U.S. population. Brands should be aware of this opportunity and find appropriate communication strategies.


IRI Reveals U.S. Hispanic Shoppers Spend US $94 Billion on CPG Products

IRI Reveals U.S. Hispanic Shoppers Spend US $94 Billion on CPG Products

IRI (Information Resources Inc.) has published the results of a new report revealing the most successful new product launches for Hispanics, as well as the top new natural brands for Hispanic shoppers. The Hispanic community is the fastest-growing ethnic group in the nation and spends more than US $94.7 billion on CPG products annually.