Everybody’s been talking about the different marketing strategies born in this generation.
Different companies are initiating different marketing campaigns and setting up various plans in order to ace their position in the market through gaining online exposure and social media reach outs.
It had been a problem for many entrepreneurs that due to the large number of competitors in the market, they are struggling in getting audiences. And until now, the number of entrepreneurs expanding their business ventures online is still growing.
The good news is, the world now has programmatic ad buying. This refers to buying advertisements from different advertising platforms without necessary RFPs, personal negotiations, documents, and manual insertion orders.
According to Digibay, programmatic advertising has typically changed the face of online advertising and marketing, making it easier for entrepreneurs to purchase their chosen advertising platform without going through the trouble of social communication.
Why does programmatic advertising matter?
First is its efficiency.
Digibay explained that before programmatic ad buying, digital ads were bought and sold by human ad buyers and salespeople, who can be expensive and unreliable. Programmatic advertising technology promises to make the ad buying system more efficient, and therefore cheaper, by removing humans from the process wherever possible. Humans get sick, need to sleep and come to work hungover. Machines do not.
Furthermore, technology is being used to replace some of the more menial tasks that humans have historically had to handle, like sending insertion orders to publishers and dealing with ad tags, but they’re still required to optimize campaigns and to plan strategies. Programmatic technology will probably mean there are fewer ad buyers in the world, but it could also allow both marketers and sellers to spend more of their time planning sophisticated, customized campaigns instead of getting bogged down in bureaucracy.
But unlike how others see it as it is the same as real-time bidding, well the answer is NO.
Real-time bidding is a type of programmatic ad buying, but it isn’t the only one. RTB refers to the purchase of ads through real-time auctions, but programmatic software also allows advertisers to buy guaranteed ad impressions in advance from specific publisher sites. This method of buying is often referred to as “programmatic direct.”
Probably, Programmatic Advertising is the seen future of Ad Buying. It’s impossible to tell what portion of advertising is now traded programmatically, but it’s definitely on the rise. Some agencies now say they’re eager to buy as much media as possible through programmatic channels, and some major brands have even built out in-house teams to handle their programmatic ad buying as they spend more of their marketing budgets that way. At the moment, it’s mainly online ads that are traded programmatically, but increasingly media companies and agencies are exploring ways to sell “traditional” media this way, including TV spots and out-of-home ads.
Single Grain also sees programmatic advertising as using AI to automate ad buying so you can target more specific audiences. Real-time bidding or auctions, for example, is a type of programmatic ad buying. This automation is much more efficient and fast, which means higher conversions and lower customer acquisition costs.
It’s changing the face of digital advertising so swiftly that, according to eMarketer, almost 90% of digital display ads in the U.S. will be programmatic by 2020.
To learn how to capitalize on this digital marketing trend, check out PPC Hero’s guide to get started.
However in the study of the Digital Marketing Institute, it is not the complete automation of the ad buying process. Traditionally you would have manually prepared insertion orders or ad tags, which can be menial but labour intensive. With programmatic ads, humans have more time for the optimization and improvement of ads.
Humans will always be needed to plan and optimise advertising, but programmatic advertising will mean there will be fewer ad buyers.
What the software will mean, however, is that those who are doing the job will be able to better plan, better optimise and better target their advertising.
That doesn’t mean it’s perfect, however. Earlier this year, major advertisers pulled spending from YouTube over concerns that the video platform could not guarantee ads wouldn’t be seen on extremist content.
Cellular behemoth Verizon, for example, ended up on videos of extremist clerics.
And as for the success rate of programmatic advertising, EMarketer’s 2017 estimates put the US spend on programmatic ads at €33 billion. That accounts for 84% of all digital display ad spend. And in that, 74.5%, or $24.25 billion is done through private marketplaces or direct setups.
EMarketer principal analyst Lauren Fisher says that this is because private exchanges offer buyers more control over their spend.
“Private setups give buyers and sellers greater control over their automated buy. They may have initially served to bring in reticent buyers and sellers, but now private setups drive much of the change and momentum in the marketplace, as both parties seek greater control from their programmatic efforts.”
The system works, and is used, because it is an efficient use of both time and resources.
As John Lincoln, CEO and founder of SEO company Ignite Visibility wrote on Inc:
“Programmatic advertising is designed to do away with old-fashioned, hit-or-miss campaign design. That system was notorious for costing marketers way too much money.”
Now, you can rely on an algorithm that will determine where your ad money is best spent. All you have to do is feed your programmatic solution some info about your campaign as well as key performance indicators and you’re all set.
“The system will not only launch your campaign, but it will also monitor your ad spend to look for areas of improvement.”
Tim Webster, co-founder of The Exchange Lab, concurs. Writing on AdExchanger, he said:
“The effectiveness of programmatic advertising cannot be disputed. Programmatic allows us to understand the media journey better than ever before and have one-to-one conversations with individuals.”
How can you do it? By simply following these 5 simple steps:
- Know your marketplace
- Set your goals
- The human touch
- Protect the brand
- Watch for fraud
Go get up and be on the go with programmatic advertising!