Does programmatic advertising need cultural fine-tuning?

In the dynamic landscape of digital advertising, the quest to engage diverse audiences remains at the forefront of strategic considerations. As we navigate the intricate realm of programmatic advertising, the need for cultural fine-tuning emerges as a pivotal conversation. Our recent dialogue between CEO Augusto Romano and Stephen Paez , EVP of Cultural Investment and Innovation at Publicis Group, at Portada’s Marketing in Multicultural America event, unearthed critical insights into this pressing topic. From dissecting price efficiency challenges to exploring the role of creatives and the impact of privacy laws, our discussion illuminates the multifaceted facets of programmatic advertising's cultural adaptation. Let's delve deeper into the key points that emerged, shedding light on the path toward more inclusive and impactful advertising strategies.

Key Point 1: Price Efficiency and Technical Challenges

The challenge in programmatic advertising lies not only in price efficiency but also in how buyers lean towards Private Marketplace (PMP) deals over Programmatic Guaranteed ones. This disparity leads to technical disconnects between media suppliers and buyers. Communication breakdowns in segmentation hinder optimized results, as the segmentation set by buyers may not align with the capabilities of suppliers' Supply-Side Platforms (SSP). This disconnection obstructs scale and blocks our audience from reaching its intended recipients.

Key Point 2: The Myth of Scale

Despite the apparent success in an open market where media buyers witness efficient executions, the implementation of strategies favors larger media companies over diverse ones. Disconnected data perpetuates this myth of scale, hindering the success of diverse media companies.

Key Point 3: Privacy Laws & Diverse Targeted Media

Privacy concerns are paramount, with approximately 71% of individuals expressing worry. Privacy laws are tightening, making targeted media increasingly difficult. With fewer data available, the reliance on data and content from targeted media companies becomes crucial, especially amidst the unverified digital landscape.

Key Point 4: The Role of Creatives

Creatives must undergo fine-tuning to resonate better with specific audiences. Dynamic Creative Optimization (DCO) and AI play pivotal roles in aligning creatives contextually with their environments.

Key Point 5: Alignment of Agency-side Teams

The absence of niche buyer teams poses challenges to scaling strategies and market implementations. Continuous education and framework development are necessary to address these hurdles.

Key Point 6: Communication and Collaboration

Fixing the systemic issue of communication breakdowns requires tangible action, not just discussion. Implementing supplier-side tech and allocating budgets strategically can pave the way for diverse media companies to thrive.

In conclusion, cultural fine-tuning in programmatic advertising is imperative for optimized results and reaching scale. By leveraging data and collaborating effectively, we can ensure that our campaigns resonate with our target audience and achieve the desired impact and scale.