Over the summer, self-proclaimed media curmudgeon Charles Warner wrote a eulogy of sorts for the publishing industry, dated for July 2020. Albeit creative, the post was a dramatic spin on the issue that currently has CMOs in a state of sustained concern: programmatic buying.
The more likely press release distributed in 2020 on the topic is about the mutually beneficial results that publishers and buyers have found due to the efficiency and accuracy of the technology behind programmatic buying. In a marketing or advertising campaign, execution is just as important as the big picture and programmatic buying will assist in executing efficiently, even allowing for more time to focus on the big picture. Here are three benefits of programmatic buying, and how marketers in the mobile ecosystem can reap the rewards.
Increased Cost & Time Effectiveness
When any company is considering adopting a new practice, budget must always be considered. Marketers should be pleased to learn that the move to programmatic buying can be substantially more cost and time effective. The traditional planning and buying process is quite time consuming, considering all that goes into it; I think we can all agree that the goal is to use time as effectively as possible. One way is by eliminating unnecessary time spent on the purchasing process, since programmatic omits the need for buyers to communicate with publishers directly.
Keep in mind that this technology does not negate the vital role of a media planner or buyer. Rather, it allows them more time to do the strategic job they were hired to do. Programmatic buying is able to lighten their load, but it cannot replace a creative mind.
In the Real Time Bidding (RTB) process, buyers place bids on ad space they want in a real-time auction. The increase in speed and access to inventory allows the buyer to be more selective, and in turn, more cautious with their budget. Due to the bidding format, buyers are likely to get the best prices for the available ad space.
More Impactful Advertisements
My second point may be the most inherently obvious, and probably the reason any marketing professional would be interested in programmatic in the first place. One of the first steps in the marketing process is determining your target audience, and programmatic buying makes it much easier and faster to find users that fall into your identified category. Faster and more targeted advertising increases overall ad impact, and programmatic allows advertisers to be selective with whom to specifically target and can reach that audience in real time. In fact, when using RTB, an ad can be displayed on a consumer’s screen within milliseconds of its purchase – ensuring that your ad is still extremely relevant to your target. The service makes decisions using first and third party data about consumers’ demographics, including location, income, gender, marital status and interests, but it also goes one step further. Programmatic can tell you a user’s search history, whether they have visited your site or app before, and even if they have previously viewed your ad. Utilize this data strategically by homing in on specific consumers that fit the mold of your target audience. This further supports programmatic buying’s cost-effective nature, since it eliminates wasting marketing dollars on the wrong audience.
In terms of the mobile app experience, it’s not surprising that targeted advertising goes a long way. Rather than serving an arbitrary ad, imagine that the advertisement is tailored to the user’s specific interests, and served at a time and place where they are most likely to act. The user is far more likely to give it a second look.
Performance Insights You Can Use
Not only does programmatic buying provide detailed data before audiences are targeted, it also provides insight after those impressions occur. Advertisers receive feedback on how audiences engaged with an ad, and factors contributing to an ad’s success. For instance, using programmatic allows advertisers to understand what time of day and day of the week their ad performed the best. Some programmatic software uses analytics to help clients re-target consumers and users, which maximizes user retention. Use this feedback in deciding when and whom to target next.
As technology advances, the goal of advertising remains the same: deliver the right message to the right person at the right time. Programmatic simply allows advertisers to do so more effectively. In the end, programmatic buying will only become more valuable to every player in the ecosystem as time goes on.
Mike Miller, the author of this post, is SVP Sales and Marketing at Manage