The rapid transformation of digital marketing has reshaped how brands plan, buy, and optimise media. At the centre of this evolution is programmatic advertising, a technology-driven approach that promises scale, automation, precision, and efficiency. Yet, with increasing sophistication comes an equally growing level of complexity and risk.
According to Neil Kettleborough, A Global CEO & Co-Founder of AppIQ, and a recognised programmatic advertising expert, the industry can no longer afford to overlook the pitfalls hiding beneath programmatic's impressive potential. While programmatic offers brand the ability to deliver highly relevant experiences across channels, it also demand a deeper understanding of the risks that accompany it.
Research shows that nearly 22% of global digital ad spend - an estimated $84 billion - is lost to ad fraud each year. This staggering figure highlights the urgency for brands to rethink how they approach programmatic media buying and to adopt smarter, more protective strategies. Neil Kettleborough emphasises that innovation without caution can lead to two steps forward and one step back - a pattern many marketers unknowingly fall into.
As a seasoned programmatic media buying consultant and global digital advertising strategist, Neil argues that meaningful progress depends on striking the right balance between automation, accountability, and human oversight. Below, we explore the major challenges and the significant benefits that shape today’s programmatic landscape.
Key Challenges in Programmatic Advertising
1. Ad Fraud and Viewability Ad fraud remains the most critical threat to brands investing in programmatic. Fraudsters increasingly rely on sophisticated bot networks, spoofed domains, and fake impressions designed to drain media budgets without delivering real engagement. The impact is not only financial - it also skews performance metrics, misguides optimisation decisions, and undermines trust in the ecosystem.
Key risks include:
Invalid traffic (IVT) from bots and automated scripts that inflate impressions and clicks
Spoofed or low-quality inventory that appears legitimate but offers no real consumer value
Distorted reporting and attribution, making optimisation and budget allocation less accurate
Neil Kettleborough stresses that brands must partner with trustworthy platforms and adopt protective technologies that filter invalid traffic in real time. With the right safeguards, advertisers can reduce fraud risk and improve the accuracy of their reporting. As a paid media expert, Neil consistently advocates for advanced verification systems to ensure brands are paying only for genuine, human-led interactions.
2. Data Privacy and Compliance Programmatic advertising relies heavily on audience data, making privacy a central concern. With regulations such as GDPR, CCPA, and other emerging laws shaping the global digital economy, brands must prioritise transparency, user consent, and responsible data handling. The decline of third-party cookies has reinforced the need for privacy-friendly solutions. Techniques such as contextual targeting, first-party data strategies, and consent-based identifiers have become essential tools for the future.
Key privacy priorities for brands include:
Strengthening first-party data frameworks to reduce reliance on third-party cookies and improve long-term data sustainability
Investing in privacy-safe targeting methods, such as contextual signals and consented identity solutions
Ensuring full compliance and transparency, including clear consent mechanisms and proactive communication with users
Neil Kettleborough highlights that privacy-first approaches are not merely compliance requirements - they are foundational to sustainable programmatic success. For marketers looking to scale responsibly, respecting user rights builds long-term loyalty and reduces dependence on unstable third-party tools.
3. Brand Safety Risks
Ensuring that ads appear in appropriate environments remains one of the most persistent challenges in programmatic. Without proper controls, brands may find their ads placed next to harmful, controversial, or irrelevant content, harming reputation and trust. To combat this, marketers can rely on blacklists, whitelists, contextual controls, and third-party verification tools that monitor placements across the web. Continuous oversight is essential, especially when operating at scale.
Key measures to strengthen brand safety include:
Using robust contextual and semantic analysis tools to ensure ads match suitable content environments
Implementing strict inclusion and exclusion lists to avoid unsafe, low-quality, or misaligned publishers
Maintaining continuous monitoring and verification, using trusted third-party partners to track placements in real time
Neil Kettleborough notes that protecting brand identity is a non-negotiable duty. He emphasises the importance of ensuring consistency and credibility across every touchpoint, especially in automated buying environments.
4. Complexity and Lack of Transparency
Programmatic ecosystems are built on layers of data platforms, ad exchanges, DSPs, SSPs, and algorithms. For many marketers, this complexity leads to confusion, reduced efficiency, and limited visibility into where budgets are flowing.
Brands must seek platforms that offer transparent reporting and simplified dashboards, enabling them to understand performance beyond surface-level metrics.
Key challenges created by complexity include:
Limited budget transparency, making it difficult to track media spend, fees, and value at each layer
Fragmented reporting, where insights are spread across multiple platforms with no unified view
Operational inefficiencies, as teams spend more time troubleshooting data discrepancies than optimising campaigns
Clarity and control are essential for building an effective programmatic strategy. Without them, advertisers risk overspending, poor optimisation, and diminished returns. Neil’s experience as an e-commerce growth consultant reinforces that transparency is the foundation for long-term digital scalability.
5. Ad Blockers The increasing adoption of ad blockers continues to restrict programmatic reach. Users often install blockers due to frustration with intrusive, irrelevant, or repetitive ad formats. This disrupts campaign visibility and skews performance analysis. To combat this, brands should focus on delivering non-intrusive, user-friendly ad formats that integrate naturally with the environment. Content-rich native advertising, in-app formats, and personalised messaging can help reduce ad fatigue and encourage engagement.
Key reasons users adopt ad blockers include:
Poor ad experiences, such as intrusive pop-ups, auto-play videos, or cluttered layouts
Irrelevant or repetitive messaging, leading to frustration and decreased trust
Concerns over privacy and tracking, prompting users to avoid perceived over-targeting
As an in-app advertising specialist, Neil Kettleborough highlights that mobile environments, when used strategically, offer higher-quality attention and more immersive placements that bypass the limitations of traditional ad blockers.
Major Benefits of Programmatic Advertising
While risks exist, the rewards of programmatic advertising remain substantial. With the right strategy and transparent execution, brands can unlock measurable, scalable, and highly efficient results.
1. Unmatched Efficiency and Scale Programmatic automates previously manual processes, enabling brands to buy ad inventory instantly across thousands of publishers and platforms. This efficiency saves time, reduces operational costs, and opens the door to multi-market expansion.
2. Advanced Targeting Capabilities Programmatic platforms offer granular targeting options based on:
demographics
interests
behaviours
online activity
contextual environments
This precision ensures that campaigns reach the right audience at the right moment, enhancing relevance and improving return on investment.
3. Real-Time Optimisation
One of programmatic most powerful advantages is its ability to optimise in real time. Marketers can adjust bids, swap creative, refine audiences, and shift budgets instantly based on performance data. This agility prevents wasted spend and drives stronger outcomes across channels.
4. Cost-Effectiveness
Automation and data-driven decision-making typically lower costs compared to traditional media buying. With improved accuracy and reduced reliance on manual labour, programmatic enables brands to achieve more with smaller budgets while still maintaining quality.
5. Deep Reporting and Actionable Insights
Programmatic dashboards provide detailed insights into placements, audience behaviour, creative engagement, and spend distribution. These insights empower brands to refine their strategies continuously and build more effective long-term digital plans.
Final Thoughts
As programmatic continues to evolve, success lies in adopting a proactive, protective, and performance-driven approach. Neil Kettleborough, a respected voice in the industry, reinforces that embracing innovation must go hand in hand with responsibility and transparency.
With the right strategy, smart partnerships, and investment in high-quality technology, brands can move confidently from risk to reward in the programmatic world.
Ready to strengthen your programmatic strategy and overcome today’s digital advertising challenges? Connect with Neil Kettleborough to explore smarter, safer, and more effective ways to scale your campaigns.