Over a short period, we’ve seen how programmatic buying has become the preferred digital marketing method. eMarketer estimates that by 2020, programmatic will account for 86.3 percent of the US digital display ad spending. The growing popularity of programmatic advertising is not entirely surprising due to its many benefits.
With programmatic digital marketing, media planning and buying are done automatically by computers running on algorithms. Programmatic removes the manual processes and middlemen that do not only create a bottleneck in digital marketing but also lead to additional costing.
By now, you’ve probably heard a lot of great things about this new digital marketing method. But before you join the digital marketing automation bandwagon, here are ten essential things you should know.
● Programmatic buying is not a display ad platform but a form of digital media buying
Aside from display ads, marketers can also purchase text ads, video, native ads, etc. through programmatic platforms. It can be executed cross-platform, so that you can reach both mobile and desktop uses.
● Programmatic buying is not confined on direct response
It also has access to traditional TV inventory as well as over-the-top media services broadcasted online. With programmatic, marketers can follow up TV commercials with a social media ad or display on her mobile device.
● Programmatic marketing is all about data
What makes the ecosystem highly effective is that it is data driven. With an enormous amount of data, advertisers can reach their target audience and deliver appropriate ads with better conversion rates. Data can be used to get a deeper insight into your target market, creatives, and campaigns. Programmatic systems collect data not just from one source but from multiple sources for better
● Programmatic digital marketing enables marketers to roll out highly effective digital media campaign through the use of data
Programmatic platforms provide valuable data, including publishers, times of day, geographies and audience segments, that can be used to narrow down their target.
● Programmatic media-buying allows marketers to evaluate the success of their campaign and re-calibrate as necessary
Unlike traditional ads wherein the marketer is tied up with a particular publisher for a certain period or a number of ads, programmatic digital marketing gives marketers the freedom to re-focus their ads mid-campaign. An analyst from a programmatic digital company, War Room Inc, stressed that this could significantly help marketers ensure a successful campaign.
● Programmatic advertising opens up more opportunities to engage with your audience
Contrary to what some traditional salespeople believe, automation does not cause programmatic to lose its ‘human touch.’ In fact, the efficient use of data enables advertisers to enrich their conversation between audience and brand.
● Programmatic can significantly reduce media wastage
With programmatic, advertisers can target audiences and deliver the right ads, in the right place, at the right time. This helps improve buying efficiency, minimize spending on ineffective ads, and boost the overall success rate of a campaign.
● Programmatic is touted as the future of online advertising
With tens of billions of dollars of ad spending on programmatic platform, it is indeed the panacea to digital marketing. Nowadays, it’s almost impossible to find a digital media agency or major publisher that does not offer some programmatic service or product.
Clearly, the era of programmatic is upon us. It is an essential part of digital marketing nowadays. While it still has some challenges to hurdle, no doubt will soon realize its full potential and take on the world of digital marketing by storm. By now, marketers, advertisers, and brands should begin looking at it as a vital part of their online marketing campaigns – or they will get left out.