by Maryam Motamedi, Director of Marketing
Having a solid understanding of programmatic marketing principles (what it does, how it works and why you need it) is hard enough. Try tackling the public vs. private debate on top of all this and you’re likely to run yourself in circles.
Below are just a few of the common myths about public and private exchanges circulating within the industry right now:
Myth 1. You must pick a side.
A common programmatic misstatement you’ll find is that publishers and advertisers have to choose what side to stand on: public or private. But, says Kevin Dalias, Product Solutions Consultant for RadiumOne, “You can’t think of public vs. private as two different camps. They are simply two ways to reach users.” So why the strong debate over which one is better? Many automated media buying agencies prefer one exchange over the other and target their content accordingly, others, like RadiumOne prefer to be “exchange agnostic”.
Myth 2. Premium programmatic is a new animal.
The concept of leveraging private exchanges to house premium content and command higher revenues isn’t entirely new, despite all the fanfare. Historically, publishers put together “ad networks” by bundling selected sites and selling brands access to these handpicked networks at a premium. Private networks are simply the automated answer to an already-established ad buying/serving model.
Myth 3. Public exchanges carry more risk than private.
The answer is: It depends. Public exchanges are as clean as you keep them. “[RadiumOne] invests a huge amount of time in making sure our inventory is clean and that we are serving impressions to human beings in the right times and places,” says Dalias. In the case of RadiumOne guarding its clients against fraud, the company uses their own, proprietary algorithms and have integrations with several third-party protection providers.
Myth 4. Private exchanges are the “best place” to see and be seen.
In the old world advertising model, “where” you reached users was paramount. Buying and serving ad impressions in a select setting, after all, comes with certain guarantees as to brand strength and eyeball count. But delivering a relevant ad experience with the intent of increasing conversions isn’t just about reaching customers in the right place…it’s also about reaching the right customers at the right time. The right user may be surfing a news publication and then a shoe store. In this context, private exchanges are limiting in terms of reach as you are taking the gamble that the right customer will happen to exist within the confines of that private space with limited reach.
Myth 5. Automated ad buying eliminates the need for human interaction.
Though automation is helping make the ad buying process more efficient and effective, it can’t replace the relationships that have to be built and maintained in order to ensure,that campaigns are being run in a way that is aligned with the advertisers’ expectations. It’s shortsighted to assume that all you need from a programmatic solutions provider is good technology. You need good people too.
If you’d like to find out how RadiumOne can help you make more sense of the public vs private debate while helping you reach the right people at the right place and time, contact us.