Definition: Programmatic is the use of inventory and data collection to connect Publishers and ad exchanges using a bidding system.
There are three main issues with Programmatic as we know it today:
- Tracking viewability is extremely hard, USA averaging about 45% at the end of 2015, thanks to the rise in ad blockers and increased fraudulent ads.
- Ad Fraud is estimated to be about 36% of web traffic.
- Transparency is difficult to obtain when the world of automation is leading the way.
FEAR NOT. There are solutions to prevent some of these issues!
- Premium Programmatic positions trump the lower quality (remnant) spaces by using a competitive CPM and Private marketplaces and Exchanges.
- Programmatic Creatives can be optimized for everything including time of day and major events!
- Programmatic Native has gotten a pretty good response by the viewers.
- Programmatic Videos are gaining the interest of more and more advertisers going niche!
Check out this guide to get a full understanding regarding these points: http://digiday.com/wp-content/uploads/2016/07/WTF_programmatic-2016-1.pdf