Marketers are holding off on increasing their programmatic budgets as a majority of them believe that poor measurement is still a major issue in programmatic.
According to a survey among 214 marketers with programmatic budgets of $100k a year by programmatic agency Infectious Media, almost 90% said they would justify increasing their expenditure if measurement was improved.
Measurement is the top digital challenge among marketers. 66% of respondents said that measuring campaigns was either ‘very’ or ‘extremely’ challenging.
Another dominant issue holding back marketers from higher programmatic investment was high viewability, followed by brand safety protection.
“It’s clear from our study that advertisers are waking up to the fact that the measurement model most have relied on for their programmatic campaigns is broken and digital ad spend is being held back as a result,” explained Martin Kelly, CEO and co-founder of Infectious Media. “Advertisers are looking to agencies to show greater leadership on how the system can be improved.”
Additionally, 64% of respondents added that a lack of education and transparency were adding to the difficulty in accurately measuring programmatic campaigns.
“Unfortunately, most have been content with the easy option of spending advertisers’ money on cheap inventory that meets a given target on clicks, regardless of the risk of fraud or the limited ROI this delivers. Agencies have a responsibility to educate their clients on the more sophisticated approaches that are available, offering them metrics that better fit their business objectives and challenging them to think beyond clicks,” Kelly added.
Meanwhile, advertisers are still considering clicks to be the most important measure of success of a campaign. This comes despite reports on fraud distortion of such clicks that have shown it is a flawed metric.
56% of respondents consider clicks the most important metric, whilst 45% consider cost per click more valuable and 43% voted for click-through rate.
John Gillan, Manging Director for the UK and Northern Europe at Criteo, said:
“These findings certainly highlight the heightened demand for improved measurement, and programmatic marketers need to look at new ways of doing this. For example, assessing Customer Lifetime Value (how much value a customer delivers to one retailer throughout a period) rather than just looking at CPCs and CPMs. However this comes with its own challenges, meaning marketers should be considering better data collaboration in a bid to accelerate their ability to develop a complete, holistic view of their customer-base. Only by doing this can marketers start to think beyond short-term, transactional gains and look towards maximising the lifetime value of their existing customers.”