Advertising agitated: Market's in trouble as brands and publishers squeeze services

  • 07/27/2019 12:00 AM
  • Source: ZD Net
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Current technology trends in the advertising industry promise to provide more revenues for publishers, substantial cost savings to the big brands -- the advertisers, and greater data transparency -- but at a disruptive cost.

As much as 60% of advertising budgets are spent on various services and fees from the many third-parties involved in media buying. That's a lot of money that publishers aren't getting and for which the brands are potentially overpaying.

There's a lot of money to be made by squeezing the middle -- the agencies and the third-party services and ad networks that soak up the billions of dollars in the huge multibillion-dollar advertising industry. The incentives for publishers and brands to close this gap between them is enormous. 

Access to data is a key issue. Programmatic media buying requires lots of data, but outside agencies that charge hefty fees usually run these systems. In-housing is a key trend that is saving brands millions of dollars by bringing programmatic media buying into the company.

Digiday reports that Bayer saved $10 million in the first six weeks of bringing programmatic media in-house. In-housing programmatic brings additional benefits -- direct access to customer data. And companies can build direct relationships with customers without having to go through agencies or other third parties.
Read more at ZD Net

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