Marketers Are Investing Heavily in Programmatic Advertising (Report)

Programmatic advertising has become an essential digital marketing tool

Every year, it seems that marketing get more and complex, with many more intricate moving parts to consider when launching or maintaining campaigns. With diversified tools, it’s necessary to focus spending on the strategies that will be most effective. The 2017 “State of Performance Marketing” report from AdRoll offers guidance on newer techniques on which to focus.

Programmatic advertising—algorithm-driven targeting of ad units to specific audiences—has started to pick up a lot of speed in all marketing sectors, but especially with social media marketers. AdRoll found that more than 70 percent of marketers are running programmatic ads on social media, more than one-half employ it on mobile and almost 40 percent use it for video marketing.

The overall investment in programmatic has increased rapidly in recent years. In 2013, only 7 percent of marketers spent more than 50 percent of their budget on programmatic solutions, but throughout 2016, 50 percent of marketers spent more than one-half of their yearly budgets on programmatic.

This investment in programmatic isn’t speculative or experimental—there are some real, proven benefits from programmatic advertising. Nearly 70 percent of marketers reported that programmatic yields a greater return on investment than traditional ad buying. Within AdRoll’s networks, the click-through rate for programmatic campaigns was up 66 percent, and there was an overall 43 percent increase in the number of impressions.

AdRoll vice president of marketing Shane Murphy told Adweek multichannel media consumption and changing user habits have necessitated a shift toward more dynamic marketing solutions:

The type of media an online buyer consumes before purchasing has exploded from a desktop search-oriented journey to a journey that spans across devices and across a multitude of channels including display, social, and video … People are much less likely to click on ads than they were in a search-dominated market.

As users switch devices and platforms, marketers should do their best to build on the data they have access to, particularly social data. Effective retargeting requires deeper insights into user behavior, and marketers should be paying a lot more attention to retargeting.

Murphy continued:

These two major shifts have meant that marketers have started to move past a last-click-oriented model to a more nuanced approach that considers a range of touch points and user actions in identifying truly what’s driving revenue for their business.

For more information on retargeting, programmatic and mobile marketing, download the full report.

Image courtesy of ileezhun/iStock.