The State of Programmatic Job Ads

Performance-based ads have become a highly-adopted and powerful tool for Marketing departments throughout the world, and yet it hasn't in Recruitment Marketing. So, what is the state of programmatic job advertising in the recruitment world?

Madeline Laurano, Founder of Aptitude Research shares information from newly published research entitled The State of Programmatic Job Advertising.

- Are performance-driven ads the answer to more effective recruitment advertising?

- What happens when employers embrace performance-based programmatic?

- Why aren't employers jumping on the bandwagon?

- What is the key differentiator for programmatic?

- Can anyone do programmatic?

- or should Marketing be involved?


Great research coupled with Madeline's HOT TAKES on news from last week in the recruitment industry.

Brought to you by those crazy programmatic kids over at Pandologic.


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Pandologic (0s):

pandoIQs, Programmatic recruitment advertising platform helps employers source talent faster and more efficiently than ever thanks to predictive algorithms, machine learning and AI. Buzzword, overdose alert. Yeah. Pando was on the cutting edge of Programmatic, while being deeply rooted in the recruitment industry. pandoIQ provides an end to end Programmatic job advertising platform that delivers a significant increase in job ad performance without any waste spending to maximize the ROI on your recruitment spend. And their AI enabled algorithms use over 48 job attributes and more than 200 billion historical job performance data points to predict the optimal job advertising campaign. The machine does all that shit. That shit sounds expensive! Think again Cheesman pandoIQ provides an end to end job advertising solution that delivers a significant increase in job ad performance without any wasteful spending. Sold!

INTRO (1m 21s):

Hide your kids! Lock the doors! You're listening to HR’s most dangerous podcast. Chad Sowash and Joel Cheeseman are here to punch the recruiting industry, right where it hurts! Complete with breaking news, brash opinion and loads of snark, buckle up boys and girls, it's time for the Chad and Cheese podcast .

Chad (1m 44s):

Here we go welcome back kids. Welcome to the Chad and Cheese HR's most dangerous podcast. I am Chad Sowash and today we have a special guest researcher, analyst and intelligence elevation artist, that's what she's going to be doing today, Madeline Laurano, founder of Aptitude Research. Give a Big applause. Big applause.

Madeline (2m 8s):

Thanks Chad.

Chad (2m 9s):

Madeline, I didn't do justice. Okay. I need, we need to know more about Madeline. Give us a little Twitter bio about you.

Madeline (2m 16s):

Well, thanks for having me on Chad, I'm thrilled to be here. And I think the intelligence elevator is the greatest compliment I've ever had, so I don't know if I can say anything else after that, but I do research, like you said, on HCM technology, talent acquisitions, a big focus for me. And I know for you too, so I'm excited to be here and share some of the new research.

Chad (2m 36s):

Enough of the T's on the research. We're going to be talking about programmatic, but before we get into the research, let's talk a little bit about what programmatic is in the first place. We know what dumbed down distribution is and all that is very simply, and it is programmatic to an extent, right? If you're posting a job and it's being thrown out there to the world, that is a programmatic distribution, but we're talking about something much different than just spray and pray types of technology. What is the programmatic that we're going to be focusing on with this research?

Madeline (3m 11s):

Yeah, it's exactly right. I think most people think it's just job distribution or just real-time bidding. And it's so much more, it's really automating all the buying and selling of advertising. It's used so often in marketing and it's removing in many cases, humans from negotiating that, which is time-consuming, there's so much error with that and it's streamlining all your advertising and it's doing that all through a performance driven system. So ultimately if it's working, you're saving all of this wasted spend, you're saving money and you're streamlining your advertising and ideally getting the right candidates, which is what it's designed to do.

Chad (3m 46s):

Yeah, but the problem is in talent acquisition, adoption. We haven't seen mass adoption. So your research actually jumps into some of those different points. And again, we're just going to tease the research because we want people to be able to, to read into it, not to mention you and I have a webinar with to talk more about this in March, right?

Madeline (4m 12s):

Yes, exactly. We're going to talk about all of these misperceptions around what it is and what's happening in the market. And I think that's exactly right, Chad though. It's, if you look at marketing and how we've adopted programmatic, it's like it's 80%. Something crazy! And that's small companies, big companies and in talent acquisition, it's under 10%. And that's what we found in our research too. It's just not being adopted. It's not being talked about enough. I mean, people don't understand what it is, who the players are, what it can do. So we're, I know we're going to do that on the webinars, you know, shine some light in the space and we tried to do it in the research too.

Chad (4m 47s):

Well. Let's talk about some of the players real quick, because if talent acquisition leader is not familiar, we've got the pandologics, we've got the Joveos, we've got the Appcast, we've got hat is, what is Radancy's, I think it's just Randancy's programmatic, Symphony Talent, programmatic. Who else, who else?

Madeline (5m 12s):

Yeah. And then Recruitics with KRT and they've got programmatic. And, you know, I think that that's really where a lot of the strength is in these standalone providers or the Symphony's that have, you know, really made a commitment to building it out. I think the confusion is when, and I know we've talked about this before, when the ATS providers start to say, we've got programmatic and they don't, and then it just becomes confusion about what's job distribution. What's truly programmatic. And, and we've seen that, we've been at conferences together where we've seen ATS providers going to market with programmatic.

Chad (5m 47s):

Yeah, and really what it is what I like to call. And I'm not trying to downplay how hard it is for like a Broad Bean to push jobs out. That's that's not easy. They have analytics, they have all, but it's not programmatic. Right. They actually, I think they've partnered with Joveo and probably some other programmatic players to provide programmatic to their customers. So the big question is why has marketing had such a high adoption rate in talent acquisition has not.

Madeline (6m 19s):

Yeah, it's a great question. And we dove into that and the research, and I can tell you some of the themes that came up and the differences that came up the first is it's not an integrated part of our TA strategy where it is in marketing, like the marketing strategy and the brand strategy for companies includes programmatic. That's a core component, and we don't do that in talent acquisition. It's the separate side item. You know, it's a different market, different providers that we don't typically talk about and it's not integrated. And I think the other piece is marketing does a really good job of showing the value and showing that this isn't something that requires you to build this new budget and think about cost, it's a cost savings solution.

Madeline (6m 60s):

And we don't talk about it the same way in talent acquisition. So I think when it's not integrated, and when you're talking about it as an expense versus a cost savings solution, there's a disconnect.

Chad (7m 10s):

And that being said, what has your research actually found with regard to companies going programmatic? Are you seeing them sticking with it? Are they actually, you know, increasing budget? What's the story there? Because those are the ones, for all those talent acquisition professionals out there who are not yet in the land of programmatic, they can look at their peers and say, okay, what have they done?

Madeline (7m 34s):

Exactly. And I think that was the biggest aha to me in this research is that companies start using it. Don't go back. They don't go back to traditional advertising. 57% of companies they use programmatic are continuing to increase their investment. And that's huge to say, that's an, and it's an easy replacement. It's not like a CRM. Like if you, if you don't want to use your CRM anymore, you've come through so much implementation. It's so much money. You got to stick with it. But with programmatic, you could go back, you could go back to traditional, but companies aren't, they're spending more. And you know, I think that really speaks to the value and you know, the streamlining, this advertising, which is a huge time commitment if you're not doing it through automation.

Chad (8m 13s):

Yeah, exactly. Exactly. So what's the next point? The next point is another, I think excuse more than it is anything else.

Madeline (8m 20s):

Yeah. I think the next point is about this loss of control, right? It's that companies think if they're going to go to programmatic, we're going to lose control in how we're doing our advertising. This isn't what you want to manage. We want to use one aggregator. We want to use Indeed. And that's what we're comfortable with. And programmatic means we don't have control of that anymore. We're removed from the negotiation. But to me, it's like traditional advertising. It's a complete out of control model. That's a model that is out of control. You have no visibility, you have no idea what's working. And when it doesn't work, you have to spend more to be able to get more of an online presence. So it's not working, you're not getting the right candidates, give us more money, so we can increase your online presence, you still will have no visibility and that's out of control.

Madeline (9m 5s):

So it's interesting.

Chad (9m 7s):

So you're trading one control piece, for you control maniacs, et cetera, out there, I know, cause I'm one. You're trading the control of knowing exactly where my job is being posted, for the control over your wallet. Because right now the control on your wallet is gone. You are screwed.

Madeline (9m 27s):

Yeah, exactly, exactly. Exactly. So to be able to see some visibility and performance driven advertising, which just isn't happening right now.

Chad (9m 37s):

So, and that is all through this third point, which I am going to just sit here and just bask in, because we've been talking about AI for so long and everybody makes fun of it and everybody's like, yeah. Machine learning and AI, but you found that AI is actually the key differentiator, which is why people stay and why it's so effective.

Madeline (10m 0s):

Yeah. Because you're actually using historical data. You're using these job attributes and you're able to predict what's going to work. So the advertising that you're doing is based on a model for your company, that's going to work for you and bring you the right candidates. And that's very different than just real-time bidding. That's very different than just job distribution. AI, to me, what's the differentiator. And that's when you look at all these different providers we talked about in the beginning, that's where you're going to start to see some providers stand out more than others.

Chad (10m 28s):

Right. Right. And some of these providers, I mean, they've been around for 10 to 20 years in gathering data. I mean, we're talking about models that before programmatic, these organizations were gathering data because they were pretty much the dumbed down distribution models and then they evolved. So this isn't, it's not like you're dealing with organizations who just popped up out of nowhere. You're dealing with individuals who've been in this space for a very long time. In some cases, probably longer than you, talent acquisition leader.