Why Programmatic and Direct Sales Need to Unite for Better Outcomes

Why Programmatic and Direct Sales Need to Unite for Better Outcomes

By: Why Programmatic and Direct Sales Need to Unite for Better Outcomes

What began as one-of-those marketing activities to offload spare ad inventory and gain impressions at low costs, is now a thriving multi-billion-dollar market. ‘Programmatic’ is here to stay – and is possibly the game-changer marketers have been waiting for.

Programmatic could redefine the future of sales and advertising, considering that Google is targeting 60% of its 2019 ad budget to this space. From just $10 billion in 2014 to a staggering $84 billion this year, investments are clearly on the rise. Yet, conversations are rife with myths, doubts, and hype around programmatic adoption and its impact on traditional sales, with many losing the plot of why programmatic and direct sales need to come together.

What sets programmatic and direct sales apart

For many years now, ad sales have relied on manual efforts and outmoded operational models. Even with the emergence of digital, we still have deals inked over lunches and telephonic conversations. It’s no surprise, then, that sales and programmatic teams have always operated in silos.

While programmatic may differ from direct sales, the overarching goal of bringing in revenue, requires that they sync up for better results

While direct sales can help with building rapport with advertisers, programmatic can offer better deliverability with the automated sales and delivery process of ad auctions involving more premium views or facilitating auto-allocation of budgets as per the demand.

For advertisers, the advantages of programmatic outnumber those of having to deal with direct sales teams. They can procure digital spaces without pre-negotiating a price and pay only for the impressions. For the publisher, by defining the minimum number of impressions or budgetary limits, they can even reduce admin costs through automation and ensure functional targets are achieved. Also, real-time bidding (RTB) helps both parties to leverage customer data to align and personalize campaigns to its viewers, thereby increasing conversion rates.

Boston Consulting Group’s recent report has also showed how programmatic guaranteed was adding value to direct sales teams in several ways.

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