Programmatic. No doubt you’ve heard people talking about it, heck you may have even broached the subject yourself.. In this fast-paced ad-tech world where one day QR codes are the answer and the next we’re all going to be replaced by robots, just how much do we all really know about one of our industries most used buzzwords?
No need to complicate things. Here’s the top 5 things we know about programmatic media buying right now. There is no guarantee that the list will still be the same in 6 months time – In fact, we can almost guarantee that it won’t – however for now it is a succinct, top line overview with the aim of giving you the confidence to join the conversations taking place around it next time a tech-savvy colleague brings up RTB (don’t panic we’ll get to that too).
So let’s get to programmatic.
First off, what exactly is it?
There are a lot of definitions floating around out there, but a simple one that we quite like is from the Internet Advertising Bureau (IAB):
“Programmatic means automatic. Programmatic buying refers to any ad space bought automatically on a web page, through either bidding for the space or buying it directly so it’s guaranteed to be yours.”
It’s often confused with real-time bidding (RTB), which is the buying of ads through online auctions, but that’s just one aspect of it.
Ready or not, here it comes
Besides the fact that ad-tech land is referring to it as the biggest thing since digital, there are some pretty compelling stats to justify the hype. The IAB, estimates that between 20–30% of ad budgets are currently traded this way in Australia,. On a global scale, Australia is leading the way with the IAB reporting we’re one of the world’s top four most active markets for programmatic media trad¬ing. If that isn’t enough to pique your interest, according to research firm Magna Global, growth rates are estimated at between 60 –70% over the next three years. Now that’s some hefty expansion by anyone’s standards.
The right message, in the right context
One of the major reasons you should care about programmatic is because of how hard it can make your ads work. Long gone are the days of placing an ad and hoping for the best. Programmatic increases the performance of your ads by offering precise audience targeting within tried and tested environments for maximum engagement. Its real-time capabilities also mean that ads can be optimised mid-campaign to reach the most relevant prospect – something traditional mediums could only dream of doing.
Additionally, from a process point of view it makes things a hell of a lot easier. The automation behind programmatic removes many manual processes, resulting in greater workflow efficiency and which ultimately leading to cost savings..
The biggest of big data
Programmatic systems use 1st and 3rd party data to build detailed customer profiles. These insights are used to increase the performance of your campaigns, while also providing powerful ROI metrics. All this data combines to create a deep understanding of customer behavior and purchasing habits that can be used to inform future business strategies.
Although it’s been in existence for around 5 years now, programmatic is still evolving and unless you have the time, money and resources to take it in house, it’s important for advertisers to work with specialised programmatic vendors that they know and trust.
Key things to look out for in a programmatic partner are independence, and agility. A multi-platform approach, along with transparency and a guarantee of quality inventory will also contribute to delivering the best possible results for your budget week in week out.
So that’s it. Programmatic made simple.