The adtech industry is too focused on metrics that don’t really matter to its customers and needs to shift its focus to get stronger buy in from senior marketing leaders.
To convince CMOs to invest more in programmatic, it is important to map to overall business outcomes as well as cross channel marketing KPIs, says Krish Raja, Director, Product and Platform Strategy at Amobee.
He made the comments after a panel discussion jointly hosted by Which-50 and Amobee featuring four senior industry executives discussing the future of programmatic television and its impact on advertising.
The panelists included: Antonia Farquhar, Head of Media, Content, and Data at Nestlé; Michael Stephenson, Chief Sales Officer at Nine; Andrew Dixon, Head of Sales at Amobee; and Patrick Darcy, former CEO Cadreon Australia and recently appointed Chief Data and Technology Officer, Dentsu Aegis.
According to Raja, “The main challenges we have with brands that don’t optimise to digital metrics is around getting CMOs to buy into the value of programmatic.”
“So mapping to the end goal a CMO has is always one of the main things we look to do so we can communicate in their language. That aside, finding the ideal service model for each client is a challenge we navigate daily.”
In terms of expertise there are some important questions to be answered. Raja explains, “What is the current and future expertise of the brand’s marketing team? How can we support short term and grow expertise in the midterm? What mix of skills and knowledge do we as an adtech provider actually need to make all that happen? Those are the big questions.”
Raja said he saw two important trends in the future of programmatic.
“The first one is building for a new TV industry. Programmatic platforms have great data and algorithms at their core, and TV will benefit massively from some of the targeting and automation that can come from this world. It’s important platforms build for TV though, as opposed to retrofitting other pieces of technology or trying to change too much too quickly. For example, we need to focus on how marketers currently measure their linear TV spend as opposed to try to change that.”
The second important programmatic trend is omnichannel buying, he said
“The three oldest ad formats are digitising quickly – radio, TV and outdoor – the promise of being able to reach an audience across all ad channels through one platform and co-ordinate that with your data asset and other comms channels really comes to life here. We’re building for both worlds at Amobee which is an incredibly exciting space to be in.”
Television and video
The panel also discussed the growing nexus between television and video advertising.
“Antonia Farquhar, Head of Media, Content, and Data at Nestlé, said her company currently invests heavily in screens and video across TV, programmatic, catch-up and YouTube.
Nestlé also has a long list of websites for the videos which, she says, is a strategy that is working.
“We use TV for its very broad reach. It’s definitely not a targeted audience environment for us. ”
However, Nestlé balances that by using digital advertising, which provides a more targeted and high-value audience approach.
“That is where we’re really testing, learning, and optimising,” Farquhar said.
She also said she finds it interesting that TV is being bought more programmatically across the board. Brands want to know how can they learn faster, she said.
“With digital, we can test an area really quickly, and determine how much more relevant we can be.”
Raja addressed the need for greater collaboration between ad tech businesses, to ensure clients get the best outcomes.
“It’s not enough for us to know our own products and sell them well, we need to understand what other technologies are being used by our clients and how that impacts the solutions we are able to build or the client’s ability to gain value from our services.”
He argued that marketers are putting together their own puzzle in the form of a technology stack, and ad tech companies need to seamlessly connect to these stacks, “and clearly demonstrate the ROI and value we bring to the table ourselves or to other pieces of the puzzle.”
About the author
Athina Mallis is the editor of the Which-50 Digital Intelligence Unit of which Amobee is a corporate member. Members provide their insights and expertise for the benefit of the Which-50 community. Membership fees apply.