By Christoph Berg, CEO and Co-founder, MINT Square
The dynamic nature of the digital advertising ecosystem means that new opportunities and challenges arise all the time. And sometimes innovations that were meant to level the playing field end up creating more disparity.
In theory, programmatic democratises access to premium inventory for small and medium businesses. In reality, consolidation is closing the gates – leaving SMEs with fewer paths to reach their audiences programmatically. Mergers and acquisitions activity in the adtech sector rose by 73% in 2024, according to research from LUMA Partners; illustrating perfectly the changing landscape and how there are fewer players involved.
For smaller advertisers and agencies, options are already somewhat limited. Beyond Facebook Ad Manager and Google Display Network, programmatic actually has a high barrier to entry, with minimum direct spend requirements for large DSPs much greater than the budgets SMEs have at their disposal.
Smaller companies who do venture into the programmatic space are often faced with complex buying tools with convoluted workflows and jargon-heavy interfaces, and that require specialist expertise to operate effectively. This means they can’t always be confident they’ll see the best returns from their investment: research showing that $26.8 billion in media value is lost each year globally due to programmatic inefficiencies backs up this lack of certainty.
So what opportunities are currently available for smaller advertisers and how can they harness the benefits of programmatic more effectively?
Newer channels offer key opportunities for SMEs – but accessing them can be tough
One area where the gap between the promise and the reality of programmatic advertising is especially evident is connected TV (CTV). In theory, CTV provides smaller advertisers with access to the largest screen in the house – traditionally the preserve of big-budget brands. In the digital age, SMEs can tap into local and niche audiences with precision, then take full advantage of the immersive ad experience enabled by CTV.
But accessing premium streaming inventory, like Netflix, Sky or Prime Video, usually means stitching together multiple DSPs, with separate contracts. And with a huge chunk of programmatic spend tied up in private market place (PMP) deals, according to the Association of National Advertisers’ figures, SMEs need simpler and more efficient ways of accessing the CTV space.
Digital audio is another area full of opportunities for smaller advertisers. Powerful, precise targeting based on device type, location, time of day and playlist behaviour presents opportunities to connect with audiences, not just on music streaming platforms, but digital radio, podcasts and gaming environments too.
However, the latest IPA Bellwether report shows that investment in this channel in the UK is currently falling. And part of the reason for this is the complexity of accessing inventory, with complicated buying structures deterring advertisers who want simple, scalable solutions.
Another area where local advertisers and small businesses have exciting new opportunities to reach audiences in real time is digital out-of-home (DOOH), with touchpoints in a range of locations from airports to retail outlets, and from gyms to hospital waiting rooms.
Granular options covering time-of-day and proximity mean that this channel can be incredibly efficient and relevant, and moving images and interactive elements will attract the attention of passers-by. But again, the need for in-house expertise means that many small businesses either can’t effectively manage and optimise programmatic DOOH campaigns or lack the confidence to invest in this area.
Getting to grips with programmatic
Small businesses have much to gain from developing an omnichannel advertising strategy that goes beyond display and social into video, audio, DOOH, retail media and more. And if access to the programmatic marketplace is proving to be a blocker, by following some key principles they can get to grips with this problem.
The first step is to improve internal education around programmatic. There’s a need to understand how these marketplaces work and how to succeed in them. For SMEs lacking in-house capacity, the right partners can make the difference – not just providing access, but enabling sustainable competence in programmatic.
It’s also crucial to learn more about the market in order to find programmatic partners that offer streamlined access to the key marketplaces. There will also be a level of experimentation necessary – a test-and-learn approach is essential, with A/B testing of campaigns to find the best approach.
And once advertisers and agencies have programmatic campaigns up and running, it’s vital they don’t just ‘set and forget’. Ongoing optimisation is the key – and to enable this, they will also need access to reliable, real-time measurement to tell them exactly how campaigns are performing. In terms of targeting, working with data providers will help them enrich their existing data assets, with these partners able to construct custom data segments that work for a specific advertiser or campaign.
With the right partnerships, expertise and approach, SMEs can make the most of the exciting opportunities that programmatic offers, and create campaigns that connect with their target audience across the whole gamut of digital touchpoints.
SMEs must take positive action to close the programmatic gap
There’s a widening gap between the promise and reality of programmatic democratisation. If smaller brands are to harness premium media channels without being excluded by consolidation and complexity, then solutions based on simplicity, visibility, and partnership are required.
SMEs must be prepared to learn and experiment, but they don’t need to sit on the sidelines of programmatic. With the right guidance, they can claim their seat at the table – and challenge the dominance of legacy players with smarter, leaner campaigns.
