Uncluttering Programmatic Advertising

It is important to understand Programmatic Advertising in detail as the world is progressing towards programmatic Advertising. I have written a book on Programmatic Advertising. Here is a glimpse of the book.

What is Programmatic Advertising?

In its simplest form, programmatic advertising is the automated transaction of buying and selling advertising online. It’s the process of using different platforms to sell inventory on publishing sites and the advertising side, buying inventory and place ads on a publishers site. This is not exclusive to any one medium, Channel or Product. This is an automated mechanism of buying and selling Ads.

According to Birger Bardowicks and Oliver Busch, programmatic advertising describes the automated serving of digital ads in real-time based on individual ad impression opportunities. This means serving ads (imagine any content type on nearly any medium) and reaching a targeted end-user or audience is possible through aggregating the most specific i.e. granular data.

Why is Programmatic marketing is Important?

Programmatic Advertising has become very important for a marketer because of its capability to converge significant advancement in the technologies mentioned below.

● Highly Scaled Computing Power

● Affordable Storage Capabilities in the Industry

● Advanced Algorithms

● Advertising Infrastructure

● Improvement in Auction Methodology

● Automation

● Personalization

● Competition among Tech Giants

● Ad Tech Disruptive Startups

● Development in Attribution Mechanism

● Digital Reconciliation

Programmatic Advertising can provide you scale, Real-Time Flexibility and Efficiency because of the above factors. Programmatic can help you deliver the right message to the right customer in an automated way transacting in a magnitude of milliseconds. With Programmatic, Advertisers can pinpoint the efficient route possible at an appropriate moment to achieve successful outcomes reaching their intended audience given a narrow attention span.

With the real-time implementation of Artificial Intelligence and Machine Learning, a significant amount of data of consumer behaviours are analysed directly and are instantly served ads dynamically.

So far most of the above content is written for Advertisers. Publishers can reap the benefit of monetizing each impression of theirs. The below points can help you understand how.

● Direct Sales have limitations — In traditional direct sales, a direct contract is negotiated between advertisers and publishers for the ad spot is filled with ads for a promised period. In this case, the same ad is shown to all the visitors coming on the website for the committed period makes it monotonous for the viewers. The click-through rate faces a major drop in the number of regular visitors over time. There is no centralized platform to verify the data shared by Publishers, which makes advertisers hesitate to go for direct sale deals.

● Every impression can be monetized — Using the programmatic technique of Header Bidding & Yield Optimization publishers can earn maximum ad revenue through increased competition for their ad inventory by opening it for bids from multiple advertisers. Publishers can leverage Private Marketplace (PMP) deals to get premium prices for their premium ad slots from advertisers that are highly interested in their niche audiences.

● Transparency — Publishers can offer a brand-safe and transparent ad serving environment to advertisers. Publishers can also get ad fraud detection and prevention tools with their monetization platform to help thwart frauds like incoming bot traffic and domain spoofing.

In the United States, 80% of the digital display ads are transacted programmatically out of which mobile consumes two-thirds of the spend. Here are a media spend report from eMarketer about digital ad spending.

It is expected that Video and native investments would result in double-digit growth. The below data is a clear indication of how Programmatic Advertising is growing at a faster Pace. eMarketer forecasting director Shelleen Shum explores US programmatic ad spending estimates for video on connected TV and the platforms contributing to its growth.

Adobe Think Tanks (https://cmo.adobe.com/articles) are forecasting that by 2022, 80% of the advertising process will be automated, “a threshold that will never be surpassed.” The remaining 20% will be comprised of brand value, storytelling, and other more experiential tactics that will always require a human driver.

According to Forrester (https://www.ana.net/content/show/id/38895), 31% of companies investing in programmatic ad buying said they have expanded their in-house capabilities to manage and oversee these programs.

Adweek published a white paper in collaboration with Dun & Bradstreet (https://www.dnb.com/content/dam/english/dnb-solutions/sales-and-marketing/dnb-adweek-report-2017.pdf) that 65% of B2B marketers indicated they currently buy or sell advertising programmatically. This is an upturn from 54% a year ago.

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