Programmatic Advertising is the latest buzzword in the advertising ecosystem. Advertisers are going ga-ga over programmatic advertising. And why not! Considering the host of benefits, it brings along, it would do better to hop on the programmatic bandwagon sooner, rather than later. So before we move on to why you should care about programmatic advertising, let us first understand what exactly is programmatic advertising.
Programmatic advertising is advertising through the use of software, algorithms, and codes. It is used for digital ad buying. So, why has it taken advertising by storm? The prime reason for this is that it helps brands to reach the right customers, at the right time and the right place.
Right targeting means a better ROI:
Using programmatic advertising brands can target the right set of customers. This directly increases their chances of conversion. Targeting the right audience profiles makes sure that your advertising dollars are not wasted on non-productive impressions. Advertisers have to pay only for the relevant ad impressions. This brings in a better Return on Investment (ROI), which is reflected positively in the sales figures.
It’s simple. It’s efficient.
Though it involves a lot of jargon, programmatic advertising is quite easy. Especially so with all the Self-Serve Demand Side Platforms (DSPs) available out there. Advertisers just have to register themselves with the DSPs. They are then connected to a slew of ad-networks, ad-agencies, and relevant publishers. Their dashboards show them the campaign data on a real-time basis. Most of the times, a dedicated account manager is provided who looks after their account. It takes away the hassles of traditional media buying, which involved sales personnel fixing up meetings with the publishers, all the negotiations, etc. As the human intervention is minimized, the efficiency is maximized. Programmatic advertising ensures minimum human errors and maximum output.
Personalized and Consistent Advertising
A personalized message can be delivered to the users based on the user’s likes, dislikes, and preferences in various field such as shopping, music, and other demographic and consumer trends. Techniques like cross-device targeting and Dynamic Creative Optimization (DCO) enable brands to deliver a consistent and customized brand message to their customers. Cross-device targeting is a method used to reach a specific consumer across a wide range of devices he/she uses. These devices may include smartphones, tablets, phablets, and desktops. Dynamic Creative Optimization is an advertising technology that creates personalized display ads dynamically, based on the user’s data.
Harnessing the power of data
Programmatic Advertising offers real-time data and insights. Advertisers, as well as publishers, can benefit from the power of data. Programmatic advertising allows them to get real-time data on the Key Performance Indicators (KPIs). For publishers, these may include the number of visitors and the number of views for a particular ad impression. For the advertisers, it may include the effective Cost per Mile (eCPM), which particular site is performing the best for them, the budget spent per day, etc. As programmatic makes granular performance measurable with different cohorts of users, publishers and creatives, it is preferred by Chief Marketing Officers (CMOs) worldwide.
With such amazing and unprecedented benefits, it’s no surprise that programmatic advertising is the hottest trend in advertising right now. It is the future of advertising. It is already a rage in the US with more than 80% of the ads spends accounting for programmatic. Many European countries are also seeing over 50% of display ads spent on programmatic. As marketers in Emerging Markets get honed on to various techniques on programmatic, we see quick adoption and penetration in these markets soon.
by Herat Maniar, Founder & CEO, AudienceBay