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Turkeys Don’t Fly: The Hard Truth About Programmatic Advertising

Amid the digital cacophony of modern advertising, a profound transformation is underway, reshaping the very essence of how media is bought and sold. This change, largely driven by the rise of programmatic advertising, prompts a reexamination of the relationship between advertising and its intended audience. 

Jim Meskauskas, one of us old guys, and a former vanguard in the digital advertising sphere, offers a piercing critique of this shift.

Meskauskas insightfully observes, "Programmatic advertising, as it’s conducted, has moved advertising away from the audiences with which it should be concerned and towards the inventory that is being transacted." This statement encapsulates the crux of the issue: the transition from a focus on audience engagement to an impersonal fixation on ad impressions and inventory.

This automated, set-it-and-forget-it nature of programmatic advertising has led to a depersonalization of the advertising process. The strengths of media planners, once revered for their ability to contextualize and connect with audiences, are now overshadowed by machines designed for efficiency and transactional accuracy. The art of inspiring action through strategic audience engagement has given way to a preoccupation with clicks and assumed outcomes.

The challenge doesn't end here. The reliance on programmatic methods unveils a more profound issue within online advertising, particularly in the realm of display advertising. Could it be that this form of advertising is suffering from an existential crisis far more significant than the automation of processes? This crisis is not merely about the speed and efficiency of machines, but rather a question of the fundamental efficacy of online advertising in its current form.

Critics argue that online display advertising, especially in its programmatic evolution, hasn't truly excelled in 'Advertising' with a capital 'A.' The system, initially designed to streamline financial transactions between advertisers and media owners, has lost sight of its primary objective: reaching relevant, responsive audiences. In the quest for impressive numerical targets and seamless technological operations, the essence of advertising – creating meaningful connections with people – has been neglected.

This detachment from the audience is exacerbated with each new technological layer added to the advertising process. In trying to retrofit objectives onto a system not designed for deep audience engagement, the industry finds itself in a conundrum. As Meskauskas poignantly puts it, "No matter how many turkeys you throw out of the helicopter and watch plummet to the earth, at some point, you must admit that turkeys don't fly." 

The metaphor strikingly illustrates the futility of expecting a system to perform tasks it wasn't designed for, highlighting the inherent limitations of programmatic advertising.

The challenges extend to the technical aspects of programmatic advertising as well. Demand-Side Platforms (DSPs) face significant limitations in processing bid requests. The explosive growth in digital ad spending, projected to exceed $200 billion, has led to an overwhelming surge in ad requests. DSPs struggle to keep pace, adversely affecting the performance of Supply-Side Platforms (SSPs) and limiting the number of impressions sold. The rise of header bidding and the inherent nature of real-time bidding (RTB) in programmatic advertising further compound these challenges.

Furthermore, the programmatic landscape is experiencing a shift towards disintermediation. With more advertisers moving their budgets to the sell-side, SSPs, which hold a substantial share of the programmatic advertising industry, face increasing competition and internal market challenges. This situation is highlighted by the actions of companies like Integral Ad Science, which, starting as an ad verification service, now offers tools like Total Visibility. These tools provide functionalities similar to those traditionally recommended by SSPs to marketers, indicating a competitive overlap and a potential threat to the SSPs' market position.

In this complex and ever-evolving digital advertising world, the words of Meskauskas ring true. The industry, in its pursuit of technological advancement and efficiency, may have lost touch with the fundamental purpose of advertising: to connect meaningfully with audiences. 

As programmatic advertising continues to dominate the landscape, a critical reassessment of its role and effectiveness in truly serving the needs of advertisers and consumers alike becomes imperative.
 

Pesach Lattin
Editor-in-Chief, ADOTAT

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🔍💻 Google Chrome's new Privacy Sandbox is getting some serious side-eye from The Trade Desk's VP Bill Simmons. He's calling it a complicated mess that's more Google-gain than internet-privacy rain. 🌧️ According to Simmons, this "anti-moonshot" move could make ads as slow as a snail 🐌, hurt the wallet 💸 of advertisers, and mess up audience targeting. It's like trying to solve a puzzle with missing pieces! 🧩 His advice? Look for other ID solutions that don't play hide-and-seek with user privacy. Time for advertisers to swipe right on different tech dates! 💔➡️💡

🌐🍪 Google's gearing up to give third-party cookies the boot in Chrome, testing out a new feature they're calling Tracking Protection. Starting January 4th, 1% of Chrome users will enter a cookie-less world where cross-site tracking gets a big 'nope' 🚫. But wait, there's a lifeline! 🆘 If sites break without these cookies, users can hit the snooze button on this feature for 90 days. Meanwhile, tech folks like Johann Hofmann and Adam Gertenbach are deep in the tech trenches, figuring out how to navigate this cookie-less landscape. 🤓🛠️ But over at The Trade Desk, Bill Simmons is throwing some serious shade, calling Google's move an "anti-moonshot." He thinks it's more about hiding user data than enhancing privacy. It's like Google's playing a game of hide-and-seek, but forgot to tell the advertisers the rules! 🙈🔍

Meta's Threads is now buddy-buddy with ActivityPub (yep, Mastodon's pal), as announced by Zuckerberg. 🎤 It's like Meta's RSVPing "Yes" to the fediverse party, where social media platforms mingle freely without those pesky walled gardens. 🌐🚀 This could be a game-changer, making Threads the cool new kid that plays well with others, potentially shaking up the social media scene big time. 🕺💃 Marketers, take note: this could be your golden ticket to new, uncharted internet territories! 🎟️🌟

🏈🍬 M&M's is blitzing the Super Bowl again with a new ad on Feb. 11, 2024! This marks their 9th Super Bowl appearance since 1998, continuing their tradition of fun-filled inclusivity. CMO Gabrielle Wesley highlights M&M's 80+ years of entertaining fans. After a brief "pause" of their iconic spokescandies, following a bit of a stir from a "woke" rebrand, they're back with a Gold Lion Award-winning flair! 🎬 Also, Snickers is joining the fun at the Super Bowl Experience, dishing out treats from a custom Ice Cream Truck. It's a snack showdown with Oreo, Pringles, and Super Bowl rookie Nerds also stepping into the ad arena! 🍫🏟️🌟

Audi and SeenThis just revved up the digital ad game with their first collab! 🚗💻 SeenThis' tech wowed with no file-size limits and tailored video quality, zooming Audi's Q4 Sportback e-tron campaign to double click-through rates in France. 🇫🇷🌍 Not just flashy, it was eco-friendly too, cutting data transfer by 33% and CO2 emissions by 10%. 🍃🌱 Jesper Benon (SeenThis CEO) and Stéphanie Cantau (Audi France) are over the moon with the campaign's performance-meets-sustainability. Re-Mind PHD France, the media agency, also flexed its muscle, ensuring the campaign hit all the right notes in luxury and impact. 🌟📈 And for the cherry on top, SeenThis's Emissions Dashboard now lets advertisers track campaign success and carbon footprint. Eco-friendly advertising for the win! 🚀🌿

The FCC just hit telecoms with a new rulebook! 📚✨ By a close 3-2 vote, they're bringing the heat to phone companies with fresh data breach regulations. 📱🔐 "Protect customers or else," says the FCC, demanding telecoms spill the beans on all data breaches, even the "oops" ones, to consumers, feds, and the agency itself, and that too within 30 days of finding out. ⏰🚨 This is the first major update since 2007, so it's like dusting off a digital relic. 🏺💨

However, not everyone's throwing a party. Just a day earlier, four senators, led by Ted Cruz from Texas, waved the red flag, claiming the FCC's playing outside its sandbox. 🚫🏖️ They point to 2017, when Congress played the 'you can't touch this' card with the FCC's privacy rules. Now, these senators argue the new rules are just old wine in a new bottle. 🍷🔄 FCC Commissioners Nathan Simington and Brendan Carr are nodding in agreement, echoing the Senate Republicans' chorus about the FCC's overreach. It's a digital drama unfolding, and the plot thickens! 🎭💻🍿

Adidas is sprinting into the Roblox world! 🏃‍♂️🌍 Teaming up with Rush Bogin, they're launching the snazzy Adidas x Rush X collection for virtual fashionistas. 👕🎮 Each week, new digital threads will drop, turning Roblox avatars into style icons. 🌟👾 They're even popping up virtual shops in Roblox's quirky corners like Princess Dress Up Obby! 🏰💻 It's a bold move to charm both new and old fans, especially as they bounce back from the Yeezy drama. 🛍️🔁 With sales dipping but recovering, Adidas is lacing up for a digital rebound! 📉➡️📈💥

🕵️‍♂️🎮 Epic Games triumphs over Google in an antitrust battle! The U.S. federal jury sided with Epic Games, accusing Google of stifling competition in the Android app market to rake in massive profits from its Play Store. 📱💰 This legal blow could foreshadow more turbulence for Google in its search and ad-tech domains. Epic Games, the daring plaintiff, brought the lawsuit in 2020, alleging that Google's dominance allowed it to squeeze excessive profits from app developers. 🎉📊 Google, known for its 30% developer tax, is under scrutiny for potentially quashing potential rivals and restricting innovation. Epic Games celebrated the victory, while Google is preparing to appeal the verdict. 🎮📈 #EpicVsGoogle #AntitrustBattle

📈💰 Perion Network makes a power move into the programmatic digital out-of-home (DOOH) realm, acquiring Hivestack Inc. for $100 million in cash upfront and a potential additional $25 million through an employee retention and performance-based plan. Hivestack's international DOOH platform, catering to major brands and agencies worldwide, will complement Perion's extensive digital advertising portfolio. With clients like DraftKings, BMW, and HBO in their roster, Perion plans to leverage the synergies between Hivestack's tech and their existing solutions to provide a comprehensive, end-to-end offering in the advertising landscape. CEO Tal Jacobson is eyeing more inorganic growth opportunities to continue Perion's impressive financial performance. 💥🌍 #PerionPowerMove #DOOHExpansion

🍕🍕 Papa John's is shaking up its marketing game! They've appointed The Martin Agency as their national creative agency of record and Carat U.S. as their national media agency of record, following a review process that started in August. Both agencies pitched insight-driven strategies to boost Papa John's relevance and appeal, improve audience targeting, and create buzz. Papa John's CMO, Mark Shambura, is excited about these partnerships that prioritize diversity, equity, inclusion, and "people-based marketing." Carat U.S. will handle media buying and planning, while The Martin Agency will craft a strategic marketing vision spanning TV, online video, digital content, and more. 🎉📺📊 #PapaJohnsMarketing #PizzaRevamp

📊🛍️ The ad-tech industry often gets bogged down in technicalities, but the core goal is simple: connecting brands with the right consumers for personalized and impactful experiences. Yet, in a dynamic advertising landscape filled with variables, such as the rise of retail media networks (RMNs), things can get complicated. RMNs, owned by retailers, offer direct engagement opportunities, but not all verticals are equally invested. The automotive and travel sectors have been cautious, launching their own RMNs to capitalize on first-party data and compete. Challenges include fragmented strategies, measurement uncertainty, and the selection of the right partners. RMNs must focus on helping brands, not forcing them, by providing value, simplicity, and interoperability. Universal measurement is the key to attracting more investment in RMNs. 📈🏬 #AdTechSimplified #RetailMediaNetworks

"AI" has done it again! For the second time in six years, it's been crowned the ANA Marketing Word of the Year. 🎉 Why, you ask? Because it's everywhere, reshaping our marketing and business landscape, and everyone's buzzing about it. 🌐💬 From its incredible potential to its looming existential questions, AI is both a game-changer and a conversation starter. Generative AI's disruptive power is undeniable, and if you're not on the AI train, you risk being left behind in the ever-evolving marketing realm. 🚂🤖 So, here's to AI, the word that's taken the marketing world by storm once more! 🥂📈 #MarketingWordOfTheYear

📺 Tucker Carlson, the controversial former Fox News host, is venturing into the streaming world with "Tucker Carlson Network" (TCN). For just $9 per month (or $6 for early birds), subscribers gain access to his interviews, videos, films, and a lineup of five new shows. Plus, a weekly Q&A and the chance to probe Carlson's mind with your burning questions in his "personal inbox." This move follows his departure from Fox News and his brief stint on X. With a history of interviewing polarizing figures, including Alex Jones and former President Trump, and a seemingly fickle relationship with his political allegiances, Carlson's TCN promises to be a rollercoaster of content. 🎢📹 #TuckerCarlsonNetwork #StreamingVenture

🚀 Andrea Prosperi takes the helm as Regional Director, Italy for global digital marketing powerhouse Jellyfish. With over 15 years of digital expertise, including a decade at Google, Andrea's promotion marks a pivotal moment in Jellyfish's Italian journey. Their plans for 2024? More growth, an expanded team, and a series of exciting events to shape the industry's future. 📈🌟 From data and analytics to AI innovation, Jellyfish is set to make waves in the Italian market. 🌊🇮🇹 #Jellyfish #DigitalMarketing #ItalianExpansion

Elon Musk, the maverick behind X Corp. (aka Tesla), is knocking on the Supreme Court's door 🚪🏛️. He's got a beef with restrictions on his Tesla tweets, claiming it's a First Amendment faux pas 📜🚫. The deal? In a 2018 SEC settlement (over some iffy tweets), Musk agreed to lawyer-check his Tesla tweets before hitting send 📲👨‍⚖️. His lawyers are now like, "Hold up, that's free speech censorship!" 🗣️🚫. Musk's worried about getting slapped with fines or worse for unapproved tweets 🚨💬. Despite earlier court thumbs-downs, he's hoping the Supreme Court will give his tweet freedom the green light 🤞🚦.

Linear TV isn't ready for retirement yet! 📺👵 23andMe, the DNA-decoding experts, are channel-hopping back to traditional TV, despite the digital dazzle. 🧬🌐 They're airing their "Hero Gene" tales during big events like the Macy's Parade. 🎈🐕 It's all about sharing unbelievable customer stories that just can't be contained in the digital sphere. 📖💥 Despite a budget trim, they're sticking with TV's wide reach and charm, especially when digital gets murky with privacy updates. 🕵️‍♂️🛡️ Meanwhile, they're still playing the field with YouTube, Facebook, and even TikTok. 📱💃 It's a media mix-and-match, juggling the old-school cool of TV with the snazzy new world of online ads. 📺✨🌍

In the CTV (Connected TV) universe, it's not just about catching eyes; it's about catching clicks and sales! 💸📺 Marketers are on a mission for measurable results, making CTV a "performance channel" 🎯. But here's the plot twist: tracking who watches what and then buying stuff (hello, retargeting!) is tougher than solving a Rubik's cube 🧩🚫, thanks to tech hiccups like vanishing cookies 🍪💔 and Apple's privacy play 🍏🔒. Agencies and tech wizards are conjuring up new spells (think partnerships and first-party cookie magic) to keep the ad alchemy alive 🎩✨. Meanwhile, brands like Rumpl are dipping their toes in CTV's waters, lured by promises of digital-style results tracking 🏊‍♀️💻. The big question: Will 2024 be the year CTV becomes the performance marketing superstar? 🌟🤔 Only time (and maybe a few more tech tricks) will tell! ⏰🔮 (DIGIDAY)

Disney is shaking up the streaming world 🌍📺 by rolling out "Hulu on Disney+," a mash-up more epic than a superhero crossover! It's like Disney decided to throw a house party 🎉 and invited Hulu to crash with its own flashy room. Subscribers can now mix and match their binge-watching menu, whether they're craving a Disney+ original, a Marvel adventure, or Hulu's spicy dramas 🎬🍿. This move is like a dream come true for advertisers, offering a buffet of ad spaces 📈💰. Bob Iger, Disney's head honcho, is like a proud chef serving up this streaming feast, boasting about increased engagement and juicier margins 🍽️🤑. And let's not forget Disney's $8.6 billion splurge to fully own Hulu - talk about putting your money where your mouse is! 🐭💸

🚀🎮 "Lego Fortnite" is here! A groundbreaking collaboration between Lego and Epic Games, this game ups the ante with a gigantic digital world, 20 times larger than "Fortnite: Battle Royale." 🌍 Imagine building with 10,000 digital Lego bricks! 🧱 Lego's not just playing games; they've been mastering this since '97 with hits like "Lego Star Wars." 💫 With this Epic (Games) partnership, they're leveling up, merging Lego's building blocks with Fortnite's gaming giant. It's like mixing peanut butter with chocolate - a delicious combo for gamers and Lego lovers alike! 🎉💻🤖

🚀 Verizon's masterstroke in the streaming wars: a $10/month deal for Netflix and Max, but with a twist – it's ad-supported! 📺 It's a bold move in the "Great Rebundling" saga, as mobile carriers (with their mammoth subscriber numbers) are giving traditional MVPDs a run for their money. 🏃‍♂️💨 The plan? Bundle streaming with other services like 5G broadband. 🌐 It's a clever "pay-less-and-watch-ads" strategy that could make ad-supported tiers the new norm, shaking up the streaming landscape. 🤔💡 For competitors, it's time to rethink strategies and possibly embrace the ad-loving bundle train. 🚂🌍 (ALAN WOLK)

🚀 Atlas Creative dives into the Roblox realm, led by new director Alex Graham-Watson, signaling a big shift in the metaverse brand game! 🎮 This strategic move, aiming to create immersive worlds for brands in Roblox, challenges Fortnite's market position. With Roblox's robust brand ecosystem and Atlas's expertise in creating virtual experiences, they're set to capitalize on the platform's higher brand activation rate and user engagement. 🌐 It's a smart play, potentially inspiring more Fortnite studios to follow suit, as the race to dominate the metaverse heats up. 🔥🌟 (DIGIDAY)

🚀 Google's on a spree! GA4's got a refresh with a 28-day data window and strict event data retention; watch your analytics! 📊 Real-time review updates in multiple languages mean quicker ranking changes. 🔄 2024 brings AdMob's programmatic bidding, but mind the cookie consent! 🍪 And crypto advertisers, mark Jan 29 for mandatory US certification. 📜 Google's keeping us on our toes! 🕺💻

🚀 Meta's AI adventure is a mixed bag! They're launching cool AI tools for better mobile interactions and integrated Facebook and Instagram features, plus a safety initiative, Purple Llama. 🛡️ But, their Imagine image generator can't quite keep up with the likes of Dall-E. 😕 Meanwhile, Google's Gemini Pro faces backlash over performance issues and allegations of a misleading demo, reminding us that AI's road to perfection is still filled with bumps. 🤔💻🚧

🤝📱 Meta teams up with Dentsu for a WhatsApp upgrade! Dentsu, with its savvy customer-experience arm Merkle, is now the go-to for WhatsApp Business in the UK. They're offering a full package: account management, analytics, and optimization tools. This move taps into the huge base of 200M+ monthly WhatsApp Business users globally. Since its 2018 launch, the app's been a hit for small businesses to chat in real-time with customers, offering deals and updates. A Meta study reveals a whopping 75% of adults prefer messaging businesses like friends. Dentsu's plan? Blend AI advancements with Meta's apps for innovative media and brand activation solutions. And guess what? Dentsu is the first global agency network to bag the title of WhatsApp Business Solution Provider. Angela Tangas of Dentsu highlights the trend towards easy, conversational customer-brand interactions, aiming to deepen customer engagement through this integration. 💬🚀 #WhatsAppBusinessEvolution #DentsuMetaPartnership #ConversationalMarketingBoost

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