In US alone, advertisers spent $9.4 billion on programmatic advertising and this is projected to increase to 12.75 billion by the end of 2020.
88 percent of US digital dollar ads have gone programmatic.
65% of b2b marketers said they have successfully bought and sold advertising programmatically.
What are you waiting for?
Gone are the days of calling up the publisher and negotiating terms when businesses want to serve ads. The days of hoping that your target audience will visit the publisher’s website and your campaigns will be seen. The days of spray and pray are going and digital marketing has taken a big leap. The stats above show the US is the biggest market for programmatic advertising. However, marketers and businesses are aggressively embracing these new waves worldwide. Now is the time to jump on board and track your efficiency and money in the digital advertising space. This article will you an understanding of why programmatic is the new rave and why you need to join the trend. Don’t stop- read on!
Programmatic advertising explained
Programmatic advertising is the use of programmatic machines to buy and optimize ads instead of buying from publishers. In other words, software functions as the publisher that sells and buys digital advertisements automatically.
Machine learning and artificial intelligence replace proposals, human negotiations and insertions orders that made up the traditional method of buying ads. Therefore, it is fast, efficient and there are transparency and analysis of where your money is going. This is something that is missing in the traditional method and it is no surprise that businesses are opting for programmatic advertising today.
User analytics is evaluated by software algorithms to determine which content is relevant to which audience. With the data, segmentation of audiences is made easy and this will ensure the right message is delivered to the right audience and at the right method.
What is the process of programmatic digital advertising?
In the early years, digital marketing ads are bought manually from publishers and it is a time-consuming process. The reason is humans are humans. They have a lot of buyers to attend to, they get tired, they are bound to make mistakes, they need some rest. But machines do not. With the programmatic machine, money, time and effort are saved. It is more efficient, it is more transparent and personalization is made easy.
To explain further, the demand-side platform,(DSP) belongs to the advertisers or brands who use it to make a purchase and determine which ads to buy. The supply-side platform(SSP) is for the publishers or sellers to list the ad space for brands. The bidding and selling all occur in real-time and in an automated manner.
Audiences are segmented to ensure advertisers only invest in ads meant for specific people in a specific context. Analysis of user data can be:
- Audience behavior
- Unique interest
- Device used
- Level of engagement
- Time of visits
Top reasons why you should adopt programmatic advertising.
Programmatic ads promote complete transparency in the purchase and let you know how your money is being spent. With publishers, DSP, SSP, agencies and a lot of other intermediaries in traditional digital marketing, transparency is made difficult. Each takes its own slice of the cake and causes a hike in the overall costs. Moreover, it can help to reduce advertising costs and increase ROI, thanks to the automated bidding process, add exchanges and CRM system.
The efficiency of the ads is measured in real-time and most of the process of ads purchase is carried out by machines. This reduces the risks of human errors and also ad frauds. The built-in capabilities enable you to block bots and fake ads that prevent your hard-earned money from being wasted on unnecessary visitors.
Access to ad inventories
This is a great platform that connects buyers and sellers on multiple platforms and devices without hassle. This provides easy access to inventories at once. Plus, you need not worry, the machine will do much of the tasks while you focus on other important aspects of the business.
Better campaign management
Programmatic technology is an all in on space to monitor campaigns progress and success. As campaigns are being run, advertisers get real-time information on the progress and track what is resonating with the target audience across multiple platforms.
One of the best things about programmatic advertising is the ability to provide great insights into the audience, their interests, needs and help to strategies marketing accordingly. This technology allows you to target the right audience across various platforms in real-time and provide personalized ads Kellogs for example, experience a 70% increase in viewability rates through their programmatic advertising campaigns.
From DMP (data management platform) to API (application program interface) programmatic technology has a lot of acronyms, which can be difficult for new tech. It is a unique technology beast that seems complicated and requires time, money and investments to live up to its fullness and fulfill its promises. If you think you are one of the people that find the whole process complex. You are not alone. There are tons of programmatic advertising courses you can take up. Learn programmatic advertising and learn easier ways to crack the hard nuts and optimize your marketing campaigns.
Digital marketing space has gone programmatic and if you are yet to take the plunge, you are missing out on a lot of opportunities. If Google, Kellogs and a host of others are using programmatic advertising to promote their product, and drive purchases, why not you?