Seven practical ways to reduce the bloat and inefficiency of programmatic
In response to his own piece from earlier this week, PwC’s Ben Shepherd reflects on better ways to manage programmatic, in a world where execution is inefficient and bloated.
Earlier this week, I wrote a piece that put forward the idea that programmatic, in its current form, is bloated and fat when it comes to resource and service required to deploy it.
Platform fees are more often than not relatively reasonable. Between 4% and 10% for demand side platforms and around the 8% mark for supply side platforms.
Programmatic execution is inefficient and bloated, but there are better ways to manage it
Firstly I don’t know who Ben is so not a dig at him. Pretty much everything he states in this column is what much every client we work with does already. Not too sure which clients wouldn’t understand this. They are not stupid. Strange article. Not too sure what you are trying to say?
Agree that the so-called solutions add little to educate anyone.
Further, according to your argument, it’s perfectly OK for real estate agents to work off the very model you despise (% of media). How is it OK for a real estate agent to charge the same 3% commission on a 2 bedroom unit as they do on a 5 bedroom house when the work performed, time spent attending inspections, systems used and hard costs incurred are usually identical?
In fact they charge their commission off total sale price which is what you claim is even worse (they do not work their commission out after systems, mobile phone, internet, petrol, marketing and materials have been deducted from the sale price).
The answer for anyone who knows about property is that the home owner is prepared to pay the 3% of the sale price to secure the best sale price they can get. The issue you fixate on (ie. fee) is not the KPI, the highest sale price is (ie. conversion).
Maybe it’s time to give someone else a turn to try produce some readworthy content who doesn’t have a personal agenda and actually wants to see both the programmatic space AND clients succeed rather than constantly pitting one against the other.
This is a classic accountant mentality. Can only see costs, no concept of value. Clients need to clearly define what value means, then see how much they invest relative to value back and make their investment and evaluation decisions using this framework. Trying to count dollars claiming there is too much fat in the middle means you just opt for the cheapest solution at all costs to your business and your brand. Why would any intelligent marketer make decisions using this framework?
Howcroft at work.