Tag: programmatic

Understanding how COVID-19 affected media consumption in Australia

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As human beings, anecdotes help us better comprehend novel problems. We have grown to understand that our gut is more often right than wrong.  In understanding how COVID-19 has affected media consumption and how brands are responding we can draw on our own experiences.

What has changed in my own consumption habits?

What do I now expect from advertisers during this unprecedented time?


A life in isolation and an incredible wealth of video content available through catch-up and subscription based services means we now have more time than ever to consume long-form video content.

Over 35’s have increased live TV consumption, especially between 5-6 pm, whilst usage amongst the younger demographic has remained steady, preferring online streaming-based services. During this period Netflix and Stan recorded the highest search volumes in the last 5 years and OzTAM VPM showed a 10-15% increase in BVOD usage, highlighting dramatic change in the search for entertainment.

These are statistics we can all relate to as, with less distraction from the real world, we now have the opportunity to tick off our to-watch list of shows and movies.


Unlike traditional media channels, programmatic inventory is subject to traffic. The more people viewing online content, the more ad space becomes available. As news feeds are constantly refreshed and we search for new baking recipes, there is an abundance of availability for programmatic advertising.

However, with consumer confidence plunging to the lowest level in history (Roy Morgan, March 2020), there is an adverse trend where advertisers are reluctant to send messages to consumers that may compromise the image of their brand.

Herein lies opportunity to capitalise on these record-low inventory prices and inflated traffic volumes. We can, and are, naming-and-shaming advertisers who are acting in poor taste.  However we are also welcoming advice from advertisers on how to carefully navigate these difficult times with their brands alongside. Many advertisers have adapted their messaging to speak delicately to their customer base rather than wave a promotional banner in their faces.


The sudden collapse of Bauer NZ, as well as News Corps suspension of printing of 60 community titles heralds an alarming threat to print.  It is entirely likely that COVID-19 may be the catalyst for more print empires to fall in the coming weeks or months and, as we become accustomed to life without newspapers and magazines, even the most devout print-consumers may finally be converted to digital channels. The advent of technologies, such as more affordable iPads will help drive the nail further into the coffin.

We can expect sweeping changes in the print industry as the search for consumers online intensifies, and the medium as a whole catches up with the rest of the online world.


While radio networks and Spotify both report increases in listenership as consumers seek companionship, Podcasts are also surging in popularity as they continue to find their way into the mainstream.

Our routine comforts of driving to work or attending a local gig have been stripped away, adding to the compounding stresses of the pandemic.  We are reaching out to try the new things, and the variety of audio at home experiences offer many of us a new delight in entertainment and companionship.  This presents advertisers with new opportunities to engage with their customer base as they journey through experimentation with different entertainment and information channels.

Outcomes for advertisers and agencies

The COVID-19 pandemic presents us with a sad truth; that there will be winners and losers across the advertising industry.  Whilst all channels have played an important role in consumer communication up to now, brands and agencies are faced with the need to be even more agile in adapting to change as we the consumers re-define our daily routines.

To understand more clearly how to shift advertising and communication focus, contact Paykel.

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The need for Transparency in the Programmatic Ecosystem

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As an advertiser, how do I know where my money is being spent across the programmatic supply chain?

A lack of transparency in the industry has fuelled the need for a deeper look into the associated cost breakdowns of using Programmatic.

The ISBA Programmatic Supply Chain Transparency Report released in May 2020 provides us with clarity on cost attribution and next steps for the Industry moving forward.

What is the ISBA Programmatic Supply Chain Transparency Report?

The study analysed each aspect of the Programmatic supply chain, the costs at each stage and mapped out the different chains from start to end across 15 top advertisers in the UK market. Key insights are transferable and relevant to other geo markets.

It took over a year to obtain the data for this study due to challenges relating to constraints on data sharing, inconsistent data formatting and having to gather all this data from a plethora of supply chains. The 15 advertisers in the study had approx. 300 supply chains to reach 12 publishers. This in itself demonstrates the degree of complexity in the Programmatic ecosystem.

Advertiser Spend Finding

The study reveals that 51% of media spend actually ends up in the Publisher’s pocket, with 49% being attributed to agency & platform fees.

The issue here is that within this 49%, 15% of spend couldn’t be attributed – labelled as the ‘Unknown Delta’.

The need for Industry collaboration & standardisation

The ‘Unknown Delta’ highlights the problem with the lack of transparency within Programmatic. This stresses the importance for all industry participants to collaborate openly and to build a network where there is consistency around data, contributing to standardisation.

Jonas Jaanimagi, Technology lead at IAB has responded to the study and highlights that most of the required standards actually exist. Jaanimagi also talks about the adoption of these standards – “adoption requires more than simply deep product understanding and technical ability, as there needs to also be an accompanying commercial awareness of why they are important.” IAB have developed critical standards such as OpenRTB 3.0, SupplyChain Object, sellers.json and OpenData which aim to deliver integration, visibility & standardisation.

Direct Sales v’s Programmatic

Maximising Publisher revenue was one of the recommendations of the study which we at Paykel challenge, as that is not the purpose of Programmatic. Jaanimagi further validates our view as he states “to purely classify monies received by publisher as ‘working media’ as a standard convention is incorrect and remains a huge misunderstanding of a key difference between direct sales upon signed contracts and real-time bidding on open market inventory”.

Through Direct Sales campaigns, you are reaching people on a single website with basic targeting capabilities. Whereas with Programmatic, there is a diverse range of targeting options available to reach and follow your end consumer across numerous sites.

Programmatic delivers value!

Programmatic is driven by technology & data which is unlocked through selective partnerships with ad-verification vendors and DSP’s. Technology Partnerships across the supply chain provide value such as:

– Buyer Decisioning (power to buy impressions based on advanced audience targeting)

– The ability to overlay 1st, 2nd and 3rd party data sets to build attractive audience segments

– Controlling where your ad runs and blocking where necessary

– Increasing the probability of ads being Viewable

Recommendations for Advertisers

If you’re an advertiser considering Programmatic, it is important to carefully select a Media Agency who offers you transparency across demand side fees. This will ensure you have full visibility into where each dollar of your budget ends up.  Partner up with a team who is able to:

– Openly share details on their technology stack and partners (e.g. associated costs & value)

– Provide you with seamless reporting to allow for ongoing campaign monitoring

As a result of this study, Paykel hope that as an Industry we develop our knowledge of the standards already set in place and adopt these at scale to drive greater transparency within the market. In the meantime, we are happy to discuss supply chain transparency with all current and new clients.  Contact us if you’d like more information!

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