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Why Advertisers and Media Companies Need to Adopt a New Model for Buying and Selling Online Media Inventory

A Study from Forrester Consulting, commissioned by SAP XM in January 2016

Over the past decade, the advertising industry has evolved dramatically with the advancement of programmatic buying. Ad technologies, such as exchanges, demand-side platforms (DSPs), and data management platforms (DMPs), have given advertisers the power to buy media more efficiently and enabled greater selling efficiency for media companies. However, as advertisers and media companies seek to push the limits of the programmatic model, they are facing inefficiencies in the process that impede additional growth.

In January 2016, SAP XM commissioned Forrester Consulting to evaluate the hypothesis that advertisers and media companies need to adopt a new model for buying and selling inventory that connects buyers and sellers more directly in order to increase transparency and drive efficiency.

Current Buying And Selling Models Are Complex

The programmatic process has become more complex over the past few years, as the inclusion of various parties — such as trading desks, mobile or video point solutions, and data and measurement providers — has added layers to the process. This complexity has led to the following changes for both advertisers and media companies:

Challenges For Advertisers And Publishers

For advertisers, the ability to change the current model is limited due to their dependency on agencies and other intermediaries to help run online advertising campaigns. With the ultimate goal of managing online ad campaigns more autonomously, advertisers are seeking more control and transparency over current processes to improve the way they buy online advertising.

For media companies, the inability to respond to current challenges is less about proving value and enabling change, and more about not knowing what other options look like and not having the skills or needed inventory to deliver on new models. As media companies begin to make changes, they are focused on improving and streamlining technology solutions to provide better value to buyers.

 

Most important fact: 90% of firms see value in a new model that connects buyers and sellers directly, reducing the role of intermediaries, and utilizes an integrated solution stack

 

Read further keyfindings of the study here or watch the summary video

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