Response Magazine Site Response Expo Site Direct Response Market Alliance Site Job Board


   Log in

Direct Response Marketing

Ad Agencies Unsure About Programmatic Media Buying

12 Mar, 2014 By: Doug McPherson

CHICAGO – A new survey finds that most (94 percent) executives of smaller and mid-sized ad agencies say they either don’t trust or are undecided about the validity of buying media through programmatic exchanges, reports RTM Daily.

The study, by agency data processing and software developer Strata, also finds that the vast majority of respondents (58 percent) say they didn’t believe there’s “unified” industry definition for the term programmatic.

Joy Baer, executive vice president and COO of Strata, who shared the data exclusively with RTM Daily, said many of Strata’s agency clients may be using programmatic buying – paid search of Google display as examples – without even realizing they’re doing it.

“There’s some uncertainty in this space, and there’s not a full buy-in from advertising agencies yet,” Bair said.

She added that the findings are the first to benchmark the sentiment of Madison Avenue’s smaller agencies, and that that while some bigger agencies do accept programmatic, smaller agencies represent about 30 percent of total media spending.

“We don’t deal with the agency holding companies,” she said, describing Strata’s clients as “large regional agencies, independents and [scaling] all the way down to the smaller shops.”

Baer noted that it’s not unusual for Strata’s agency clients to be less in the vanguard of new ideas or concepts than some of the bigger agencies – which may have more capital and more imperative for changing the way they do business – and that smaller agencies historically have played a more reactive role.

“There’s always two sides of the coin, being first to market and having successes with that, or being first to market and having to bear the brunt of research and development, and potentially costly errors,” Baer said.

Add Comment

©2017 Questex, LLC. All rights reserved. Reproduction in whole or in part is prohibited. Please send any technical comments or questions to our webmaster. Contact Us | Terms of Use | Privacy Policy | Security Seals