Many of the companies that buy media for advertisers have inventory they represent and also access the broader internet for placements. What they don’t tell you is that they are motivated to sell their inventory first, so regardless of your interests, they will steer your dollars to clear their inventory.
Conflicts of Interest
Many of the companies that supply the inventory represent both the buyers and the sellers. They tell publishers they will sell for the highest price. It’s a conflict of interest. What’s worse, once they know what you’re willing to pay, you’ll never get a cheaper price.
Not Seeing All Options
Programmatic buying relies on bidding power. Simply put, you can’t buy what you don’t see. The best technology in the world runs at a rate of 9 billion QPS (queries per second). The technology behind your buys is at best, half as powerful. (Yes, it’s super technical but it has tangible effects on the cost of your campaigns)
Little Or No Optimization
The buying platforms with cookies on your site are based on a legacy, line-item systems. They are cumbersome to operate and inefficient when it comes to optimization. So even if you give your provider the benefit of the doubt that they are diligently optimizing, there’s still the fact that it takes longer to do, and we all know, things that take too much time, just don’t get done.
Fixed CPM Pricing
The value of buying programmatic media is that it allows you to aggressively optimize to find the most efficient and effective media. Yet many providers are delivering media on a fixed-CPM basis. If you’re paying a flat CPM for media, then you’re paying too much. Either the media is not being optimized, or your provider is simply pocketing the change.
Serving the same ad to the same person time after time until they’re sick of your brand is not efficient retargeting. It’s cookie bombing. And it’s a waste of money.