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Programmatic Ad Buying Gaining Radio Ad Agency Trust

Targeting, efficiency benefits of automation outweigh agency concerns

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Programmatic ad buying is gaining trust among radio media buyers and their agencies. So says media buying platform Strata.

The company says 20% of agencies that responded to a Q3 survey trust programmatic (or automated) buying to properly execute ad orders. Twenty-nine percent of agencies polled intend to carry out up to 20% of their business programmatically, while the survey recorded a 16% drop from the previous quarter in agencies that say they do not trust programmatic.

Of the advertising agencies that use programmatic buying, the greatest benefits they see in the automated process are the improved ability to reach targeted audiences (32% of respondents), improved buying efficiency (28%), improved campaign insights (22%), and access to new inventory types (18%). However, many agencies questioned the quality of programmatic inventory (41%) and transparency (36%).

“Our agencies are reporting that the automation, along with improved targeting and buying efficiencies, are some of the many advantages they see. However, programmatic buying and selling won’t be completely embraced until quality and trust issues are resolved,” says Strata’s Joy Baer.

Strata also found that social media continues to be an important tool in ad campaigns, yet it is failing to grab a large share of ad budgets. Eighty-three percent of agencies polled said they are allocating between zero and 10% of their total budgets to social media. Facebook continues to lead the pack as 84% of agencies responded they are likely to use it in client campaigns, with YouTube (51%), Twitter (50%), and LinkedIn (43%) following. Google+ came in fifth place at 33%, which marks a 70% increase from a year ago.