Is programmatic the future of digital marketing?
No doubt, today’s ad technology is a booming marketplace for innovative products and emerging opportunities. In 2018, over 80% of digital ads are delivered programmatically in the U.S., and these numbers are going to increase in 2019 and following years.
Advances in machine learning and smart algorithms have shown that automatization works faster and better in determining ideal timing and location to reach a desired audience. Programmatic advertising automates the media buy process and optimizes ad placements.
Programmatic marketing is seen as a future of digital marketing. According to Forrester, the majority of digital spendings for the next few years will be on programmatic. But can programmatic buys simplify the work of account / affiliate managers? Let’s find out what programmatic buying is, how it works and where it can be applied.
Everything you need to know about programmatic
To benefit from programmatic buys, marketers should have at least a general understanding of how it works and what it requires to achieve success. When we mention programmatic buys, we assume advanced technology that enables high speed, automated sales of media inventory, advertisement placement, and sharing of performance data.
Melvin Goo, an online marketer learning how marketing spectrum evolves world of mas and digital media, once said that programmatic is a programmable advertising that helps to buy not sites but the audience. The point is to buy the audience when the ad is most relevant to them.
Until recently, the display of ad creative supposed a preliminary agreement with the owner (publisher) of the site or application. However, this method wasn’t targeted. There was no guarantee that the visitor will be interested in your product, so you could be wrong with the target audience of the publisher.
Programmatic media buying works on the utilization of demand-side-platforms (DSPs) and data management platforms (DMPs). The DSP speeds up the process of buying inventory on an open ad exchange and advertisers have a good chance to reach the target audience with the help of DMPs. Data management platforms collect and analyze a large amount of web cookie and app fingerprint data.
You may ask, what is the use of these platforms? Easy-peasy, they help advertisers to make a better decision about their target audience and how best to reach them. DSPs and DMPs are intended to find without favor or personal bias combination of creative placement that drives the highest ROI and gears the most important goals of advertisers.
Programmatic marketing is a way to find your perfect audience. It can encompass segments across demographics (age, gender, social standing), and geographic (can include certain areas of the country). You can manage the time and location of your ads (deliver the information to the right people at the right time).
Programmatic advertising will eventually hold the dominant market share of online display ad and mobile industries. New opportunities gave the rise to new advertising strategies on social networks and mobile apps. There are some tricks in programmatic any advertiser wants to capitalize on the benefits.
5 ways to execute programmatic in your marketing strategy
Focus on new customers and gradual growth
It is a common truth that advertisers shouldn’t pay for existing customers or those who decided to make a purchase. It frees up your marketing budget, expands your audience and maintains a healthier balance of targeting.
By neglecting new customer conversion rate as a performance metric, you have a risk to overpay for impressions that are driving the performance but aren’t pushing incremental growth. The process can be compared with empty calories that you eat. They don’t do anything to make your life healthier. Think about it.
Transparency helps to check CPM’s across marketing spending and provides a warning system to prevent potential problems. It’s important for digital marketers to make sure they see the distribution of impressions across websites and apps.
Consider the possibility of taking some ad tech in-house
Some ad servers can provide visibility into the content category and domains to which ads were served.
You can also analyze the impressions overlap and among advertisers to reach and drive high performance. Any ad server can track most part of digital activity to analyze the conversion.
Set realistic and fair goals
Careful goal setting is a good practice to understand the consumer journey and invest in it. Sometimes, allowing a higher CPA further from the point of conversions may give a better overall return.
Programmatic buys understand only clear goals and tasks. If you’re still uncertain about what you want from your business plan, put it off until better days.
Define recommendations for your ads
As you know, the internet gives access to different types of content. And as you try to find websites and apps to place advertisements (because they fit your needs), there are also certain sources you would prefer to avoid.
There is also a certain type of content you may want to avoid. For example, no one wants to see their travel discounts placed next to news about an accident or catastrophe. Work with your marketing team, think about all possible acceptable options, and mention this information for publishers.
These are top 5 ad techs that can help advertisers to build a strong foundation of digital marketing strategy. Use the opportunities to the fullest. The rise in ad blocking led to the various tricks of how marketers can serve the ads.
It’s all about ensuring high relevance for the customers. The consumer thinks this way: “if you can project what I want to see, I will buy your product or service.”
The programmatic system helps marketers to interconnect with the customers in a soft way. If you are a person that works with clients, then you understand the role of programmatic marketing in the future of all advertising. Isn’t it right that we would want our advertising to be targeted on the right person and at the right time? Programmatic is the answer to the success for digital marketing.
While we work with pretty much all app categories