One far-fetched advertising truth has been discovered and interestingly says that you must reach out the people who want to hear from you. That simply means that for the success of any marketing campaign it is very important to speak out to the people who are actually interested in buying your products and services rather than just pitching to laymen. Programmatic advertising is one of the advancements in digital advertising that has changed the course of traditional digital marketing.
Programmatic advertising- the future of digital advertising
For more than 15 years now, digital marketing has been constantly evolving and shaking up the world of multi-media advertising with its new trend: programmatic advertising.
You have probably heard about it but do you know what it is and what it implies?
“Programmatic” usually means “automatic”, but programmatic advertising has a sharper definition and includes more elements than just RTB (Real Time Bidding). It also mixes issues of cost, targeting, performance, dissemination, inventory management, and also real-time management and recommendation and goes well beyond the simple automation or simplification of purchasing online advertising space.
The objectives of programmatic advertising
In quick introduction: there are advertisers who want to run their ads and there are media publishers who have traffic and want to sell the advertising space of their website. Both sides want to optimize the way ads are bought for some and sold for others. Their objectives seem to be in opposition, however, it is in the interest of both parties that advertisements perform as well as possible.
In fact, advertisers want more leads and publishers want brands to succeed in their campaigns so they continue to spend on the media budget. Publishers want advertisers to spend more, but brands want to spend less, or better. The programmatic goal is to have tools, data, that is, all the intelligence available for advertisers to optimize the performance of their campaigns and those publishers who optimize the valuation of their spaces. In short, the new technologies available make it possible to regulate the supply and the demand and this in favor potentially of 2 parts!
The future of advertising: programmatic
Programmatic advertising responds to the demand for cost optimization and optimization of monetization. It uses software, data, and algorithms to buy real-time advertising or to program them by including various advertisers and media parameters. The purchase of digital advertising is very easy with programmatic advertising. Now thanks to the new technologies (SSP, DMP, DSP …) and new trades experts (Trading Desks) the buying/selling processes are not only simplified but also optimized.
What will be the advantages of programmatic advertising for marketers?
Programmatic advertising enables marketers to buy and program their campaigns differently, but also to identify their segments of high-value consumers, to personalize their messages and to know very quickly what works and what does not work.
Programmatic technology will play an important role in future marketing strategies. We will likely see a market mismatch between companies still focused on channel separation and audience segments and those focused on a consumer-centric view regardless of the communication channel.
We will see 2 great skills grow among marketers: the ability to manipulate new tools for the management, design, and execution of campaigns and skills around the data to analyze, segment, model targets.
Remember that programmatic is at the intersection of data and technology. Technology can be present but without the data, it will be useless.
Companies that do not have a clear view of their customers’ behaviors will not be able to make sophisticated programmatic advertising because they will not be able to segment their consumers enough. However, you still have plenty of time – as we said, programmatic is the future – so it’s not too late for brands to initiate the necessary changes or evolutions.
In order to make the most of the possibilities of programmatic advertising; a first step will be to gather data. How do you analyze your data? Is their quality sufficient? A second will be to understand customer knowledge through models, scores see external data. And finally, you can combine real-time bidding (RTB) or programmatic media display purchases and your so-called CRM actions by increasing data via cross-channel campaign management platforms.