Programmatic advertising is, paradoxically, the creator and the (potential) destroyer of the modern digital publishing industry. This article is about how the industry got there.
Programmatic & The Tragedy of the Commons
A notable exception is BuzzFeed, which built a successful business based on programmatic. But most traditional publishers couldn’t afford to pay the rent, let alone journalists’ salaries and the electric bill with the money that programmatic generates today. BuzzFeed took the low cost model to an extreme, capturing a huge share of audience attention, but with none of the costs associated with actual journalism or content production. Essentially, BuzzFeed took $10 billion of revenue from the publishing industry, and turned it into $1 billion of revenue for BuzzFeed.