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

 

   Log in
  



Direct Response Marketing

Procter’s Programmatic Buy Might Help DR

11 Jun, 2014 By: Doug McPherson


NEW YORK – Advertising Age has reported that Procter & Gamble wants to buy up to 75 percent of its U.S. digital media programmatically by the end of 2014. Analysts say such a significant investment from P&G could reduce the negative perceptions of direct response advertising (programmatic has been commonly associated with direct response).

The move might also mean bad news for agencies. Insiders say P&G’s announcement could have a significant impact on how P&G uses its media agency – Publicis’ Starcom MediaVest Group – because P&G does its programmatic buying in-house. Bloomberg has reported that Apple is taking more of its advertising in-house.

But Brian Wieser, senior analyst at Pivotal Research Group, told MediaPost News he doesn’t think the new items are omens for the industry at large.

“Growing numbers of brand-based marketers either operate or are establishing in-house trading desks for the digital media they buy programmatically. [And] while there is some logic to this approach for many marketers … over time, we only expect a minority of brand-based marketers to eventually bring programmatic trading in-house.”

Wieser mentions the difficulty of getting specialists to relocate, securing the ongoing investments needed to operate a trading desk and keeping pace with larger agency trading desks as a few reasons to be worried about the long-term sustainability of brands bringing ad tech in-house.

Programmatic has been on an upward trend. Casale Media reports marketers doing their own programmatic buying accounted for 11 percent of all spend on U.S. marketplaces in first-quarter 2014, up 267 percent over fourth-quarter 2013.

P.J. Bednarski, a writer with MediaPost News, says no other programmatic buying method – such as through an agency, via a trading desk, or using a manage service/network – grew as fast quarter-over-quarter as marketers using in-house tech. But Casale’s report included both brand-based marketers and direct response marketers, and the importance of the P&G news is that it’s on the branding side.

Bednarski adds the other side of the equation is learning how P&G will spend up to 75 percent of its U.S. budget on programmatic. “I’m assuming the majority of this spend will come through programmatic direct channels rather than real-time bidding, though perhaps the more important question is where the supply will come from,” Bednarski writes.

Wieser has said P&G is basically saying, “If you want to work with us, you’re going to supply to us.”

So P&G appears to be forcing the hand of publishers, but Wieser reckons those publishers are prepared for it. “I’m going to guess there’s probably not very many suppliers who [P&G] really care about that they couldn’t get,” Wieser said.

He added that while they might not like it, he would be surprised to learn of a major publisher that hasn’t seen the inevitability of programmatic. He believes P&G could help “move a lot of people along” in terms of how programmatic is utilized by brands.


Add Comment




©2014 Questex Media Group 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