For decades, digital marketing companies have been trying hard to sustain themselves in the market using the latest trends. Digital advertising is superior to its predecessors. It is built on mountains of user data and has become one of the crucial parts of our life.
At this stage of digital advertising, the technique uses thousands of data points to micro-target users who can be served hyper-targeted. It can include shifting the outcome of a presidential election.
Does Digital Advertising deliver the value it claims?
Hwang, in his book, pointed out that programmatic display ads today are akin to subprime mortgages. However, there is much evidence to claim that digital marketing is not enough as platforms like Google, Facebook, Twitter, Microsoft and Amazon.
Before moving further, let’s take a brief foray to illustrate one essential point i.e. all digital ads are not programmatic display ads. Apart from this, you can also use search ads, social ads, video ads or private marketplace deals.
Know the value of the advertisement
According to the studies, the entire digital ad ecosystem is supported by a vast, opaque technological infrastructure. This resembles how algorithmic trading has come to dominate segments of the financial sector. All it means is that additional scrutiny is warranted to ensure the automation performs as expected.
In a similar way, newspapers price ads by readership and even if your customer opens the paper containing your ad, the probability that the individual actually looks at Page A8 and reads your specific ad. The same holds true of billboards and radio and airport takeovers and stadium sponsorship and all the rest. Likewise, many traditional ad units come with various forms of shadow pricing got agencies or media buyers.
Make wise decisions
It is important to note that this issue tends to be concentrated among holding companies and large agencies. Not all digital advertising data is accurate, reliable and useful. Many platforms are excessively opaque and automated hindering the ability of advertisers.
In a nutshell, overall digital advertising is not always perfect. However, it is improving with time and largely due to major ad tech platforms building better and more accurate. With the passage of time, there have been a lot of bumps in the road to improving advertising and there will be plenty more.