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Home Advertising

How can we counter ‘black box’ trading?

Transacting on smart, highly automated platforms does not have to be mutually exclusive to having lots of direct dialogue and communication with each other.

by Dave Morgan
March 18, 2024
in Advertising
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How can we counter ‘black box’ trading?

Is programmatic advertising ending in-person engagement?/Freepik.com

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The history of the media industry has been one of ad buyers, sellers and tech/data enablers each pitching and pressing hard respectively for their clients’ best interests or the power of their media or platforms — and as much win-win as possible collectively in doing deals.

Some years, one element was up; some years, another. But everybody was committed to building value for the entire media ecosystem over the long term. Regular communication, transparency, critical thinking and personal relationships were pillars upon which this business was conducted.

Not so much anymore. The past decade has seen the rise of ‘strategic’ partner deals with opaque revenue shares, push-button ‘black box’ trading with murky inventory pools, and a tendency for many in the business not to ask too many questions, since wilful ignorance tends to be the favoured state of many.

The Association of National Advertisers told us at the last Masters of Marketing event that sales growth among top companies is no longer correlating to ad spend in the US. Sales growth is anaemic, despite lots of ad spend growth.

Push-button ad buying

I, for one, believe that the disconnect between advertising and sales growth is related to the growth of opaque, push-button ad buying, the fixation on slick-looking dashboards filled with faux precision analytics, and ‘strategic’ partner lock-in deals.

This has fuelled a growing resistance for many to participate in face-to-face sales calls, regular capabilities presentations and engaged dialogues on how to best solve industry and client challenges.

The issue isn’t just the slow re-adoption of in-person meetings. It’s about everybody with ‘camera-off’ in video meetings, and a resistance to building the kinds of personal relationships and networks that have always been critical to making our industry work.

More with less

There’s no question that everyone is being tasked to do more with less. For sure, data-powered analytics and automated platforms are rightfully becoming more and more important in our business, and they should.

However, transacting on smart, highly automated platforms does not have to be mutually exclusive to having lots of direct dialogue and communication with each other, being fully transparent across the ecosystem — and getting back to building personal relationships.

We are not likely to fix what ails our industry — anaemic ad-driven sales growth —  if we don’t find ways to recapture the critical thinking, transparency, trust and communication at the personal level that built our business.

This story was first published by MediaPost.com and is republished with the permission of the author.


Dave Morgan, a lawyer by training, is the CEO and founder of Simulmedia. He previously founded and ran both TACODA, Inc, an online advertising company that pioneered behavioural online marketing and was acquired by AOL in 2007 for $275 million, and Real Media, Inc, one of the world’s first ad serving and online ad network companies and a predecessor to 24/7 Real Media (TFSM), which was later sold to WPP for $649 million. Follow him on Twitter  @davemorgannyc

 


 

Tags: advertisingadvertising salesblack boxdashboardsDave Morganhuman connectionin-person relationshipmarketingmediaMediaPost.comprogrammatic buyingtechnology

Dave Morgan

Dave is the CEO and founder of Simulmedia. He previously founded and ran both TACODA, Inc., an online advertising company that pioneered behavioral online marketing and was acquired by AOL in 2007 for $275 million, and Real Media, Inc., one of the world’s first ad serving and online ad network companies and a predecessor to 24/7 Real Media (TFSM), which was later sold to WPP for $649 million. After the sale of TACODA, Dave served as Executive Vice President, Global Advertising Strategy, at AOL, a Time Warner Company (TWX). A lawyer by training, Dave served as General Counsel and Director of New Media Ventures at the Pennsylvania Newspaper Association in the early 1990’s. Dave received a B.A. in Political Science from The Pennsylvania State University and a J.D. from the Dickinson School of Law. He serves on the boards of the International Radio and Television Society (IRTS) and the American Press Institute (API), and was a long-time member of the executive committee and board of directors of the Interactive Advertising Bureau (IAB). He and his wife, writer Lorea Canales, live in Manhattan with their two daughters.

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