Programmatic Is Now Outperforming Direct Ads — So What?

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According to Integral Ad Science, programmatic now outperforms direct ads in the United Kingdom. According to the report, for the first time during H2 2018, programmatic viewability has outperformed direct buys across mobile and web displays.

The Media Quality Report also stated that 69.1% of programmatic desktop display ads met the minimum viewability standards. On the other hand, direct ads met 67.7% of the standards. Viewability was determined in three different ways; 50% for one continuous second on display and mobile advertising, 30% for one continuous second on large display ad formats, and 50% for two seconds for video ads.

Now, the question is, how will this affect the future of advertising? We’ve come up with a list.

Fewer Brand Risks

All thanks to Programmatic’s systematic ways of targeting the right audience and finding the right publishers, brands don’t have to worry about getting their ads misplaced. According to the report, the fear of ads being shown to inappropriate audiences fell by 28.9% in the UK. However, video ads experienced a slight hunch by rising to 12.5%. Which means that one out of ten video impressions was flagged as inappropriate. With the continuous efforts of digital experts, we will persist in cleaning up online environments to help lessen brand risk.

Increased Time-In-View for Video Impressions

Video campaign impressions beat both desktop and mobile web for the length of time-in-view. Video ads ran by programmatic channels drove to 14.7 seconds which is the highest time-in-view rate in the history of digital advertising. This means that video impressions are proving to be one of the greatest opportunities in digital ads.

Continuous Eradication of Ad Fraud

According to the report, 1% of desktop display impressions were affected in the UK in H2 2018. According to the IAS, the latest ad spend report has reached £2.3 billion. This means ad fraud has the potential to waste up to £23 million of UK advertising spend. Furthermore, the report noted that the numbers may be a result of the ‘lucrative’ holiday shopping period, but added that for both mobile web display and mobile web video fraud levels were roughly at the same level.

The progress that programmatic made for the industry was noted in the report. “Programmatic advertising presents media companies with a sizeable business opportunity for 2019 and beyond. However, programmatic technology has hit significant bumps along the way, often resulting from activities of bad actors,” the report argued.

“Findings from the H2 2018 Media Quality Report demonstrate the major shift towards programmatic trading, with the term ‘programmatic’ no longer associated with lower quality inventory. This is likely due in part to an increase in publishers utilizing programmatic to sell valuable inventory, via private marketplaces (PMPs).” Nick Morley, EMEA MD at Integral Ad Science commented. “Thanks to increasing budget flowing to digital, advertisers are demanding greater quality and maximized impact from their entire media plan,” he also added.

To view the full report, click here.

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Pranav Kataria

Associate Director, Programmatic Strategy

As the Associate Director of Programmatic Strategy, Pranav brings over 8 years of experience in the adtech industry working with Publishers, DSPs, Agencies, and Advertisers from global regions to improve their monetization, performance, and strategies. With great understanding of the mobile market, his expertise lies in analytics, account management, strategy, and ad sales. With this refined skill set, he brings customer-centric mindfulness that enables growth and innovation.

Before joining AlgoriX, his keen business perspective and skills have earned him opportunities to work across different organizations and verticals in the advertising ecosystem; be it improving the processes, sales enablement, and managing client relationships.

Ray Xia

VP, AlgoriX Partner Studio

Ray Xia was a mainstay at Tencent Games, having worked at the company for 13 years. There, he took on various roles including backend developer, application development manager, and game producer. During this time, he actively participated in the development and operation of popular titles such as QQ Pet, QQ Pet Fight, and games involving the Naruto franchise. To date, these games have over 10 million daily active users. Through this rich well of experience he has accumulated covering all aspects of game development and operation, he aims to spearhead more creative endeavors via AlgoriX Studios.

Naomi Li

VP, Research and Development

Naomi Li has a decade’s worth of experience in research and development for the adtech industry. She started her career at Baidu where she was mainly responsible for the Automation Testing of the Baidu Fengchao Ad Search Engine. There, she focused on the fields of overlapping experiment infrastructure, rich media ads rendering, and ad antispam technology. Moreover, as part of Baidu’s International Group, she led the research and development of various monetization and advertising mechanisms for Baidu’s overseas app store, SDK, and AdNetwork. At present, she is responsible for the overall direction of AlgoriX’s R&D efforts, which include product planning, technical architecture design, and talent training.

Frederic Liow

SVP, Revenue Growth & Strategy

A veteran in the digital advertising industry, he began his career during the early days of the dotcom era. To date, his passion for the digital industry is still as strong as ever (and getting even stronger). Spanning twenty years of his digital career, he has worked for leading companies like Nielsen, MRM McCann, Omnicom Media Group, Millward Brown and Smaato. Currently, Frederic is the revenue officer for AlgoriX spearheading global revenue growth, business expansion and strategic partnerships. He has set up and built AlgoriX’s global mobile ad exchange, hiring talents, establishing best practices, and injecting global industry standards into the company. Prior to his current role, he was the Head of Demand for Smaato, overseeing the demand business and operations in APAC. Frederic is currently based in our Singapore HQ.

Xinxiao Guo

Chief Operation Officer

Equipped with a decade’s worth of experience in global product operation as well as a deep understanding of emerging markets, Xinxiao brings her expertise in mobile traffic monetization and programmatic advertising to the table. Before her role at AlgoriX, she was a core member of iQIYI’s research and development unit. After that, she moved to Baidu as Head of Programmatic Advertising.

At present, she is AlgoriX’s co-founder and Chief Operation Officer. Together with the team, she aims to help game developers effectively reach global audiences and implement better monetization strategies.

Ruiz Xie

Chief Executive Officer

With nearly 20 years of business experience, Ruiz Xie founded AlgoriX with the vision of creating a global advertising platform and entertainment ecosystem. Through AlgoriX’s services, he aims to create a more inclusive tech ecosystem by providing customized solutions that meet the needs of businesses at every stage. At the same time, through AlgoriX Studios and its third-party partner studios, the company is currently bringing to life a greater goal of providing a comprehensive entertainment platform for people worldwide, which covers games, IP, comics, movies, and more. At present, he leads nearly a hundred employees with concrete plans to expand the company by establishing more offices worldwide.

Before founding AlgoriX, Ruiz Xie joined CoreMail in 2002. There, he created the first Ajax version of the mailbox in China for NetEase, which was the largest Internet company in China at the time. After that, he joined Tencent in 2005 and contributed to the creation of Tencent Games while also building a large scale distributed storage system. In 2013, he moved to Baidu where he took part in developing Baidu International’s overall architecture and search advertising system. During his tenure, he was also the Chairman of the Baidu Global Technical Committee and Baidu’s chief architect.