Programmatic advertising Channel is growing at an unprecedented speed of over 20% YOY. Not only is this channel growing at a faster rate than any other within the digital industry, it’s also completely dominating the market. With spending set to reach heights of over $60 billion in 2018, it’s safe to that programmatic advertising is here to stay. But what exactly is programmatic advertising?
Programmatic advertising is the process of using technology to buy and sell ad inventory through an automated and data-driven procedure. It also represents most types of ad spaces on all screens including video, mobile, native and display ads.
But why was Programmatic introduced? It was introduced to consume the inventory which publishers had but could not be consumed by their preferred advertisers. So giving access to all on real time basis this concept evolved.
DIFFERENT TYPES OF PROGRAMMATIC ADVERTISING
This is also called automated guaranteed and happens when a buyer gets a hold of a publisher’s ad inventory at a fixed price. This inventory also happens to be reserved and is very similar to the old way of trading inventory where a direct sales team is involved. Third party companies and a particular set of platforms are required to add control and ensure delivery.
Preferred deals are also referred to as unreserved fixed rates and relates to the ad inventory not being reserved, but the price agreed upon beforehand. As with programmatic direct, there needs to be a direct line of communication between the advertiser and the publisher.
This is also referred to as invitation only auctions and covers private marketplace deals where inventories are sold by a group of or single premium publishers. An auction takes place between exclusive advertisers that only gain access by invitation.
Open auction RTB environment
This is when a technology-based bidding environment is created for advertisers to bid on remnant ad inventories of publishers. This option can give advertisers and agencies quick access to a wide range of publisher inventories on a global scale.
PROGRAMMATIC VIDEO, MOBILE, AND NATIVE ADVERTISING
Programmatic advertising isn’t just being utilized within display advertising, the likes of video, mobile, and native ad formats have also started to adopt this technology-driven approach to marketing. The proof of this is obvious within the advertising industry. According to Veinteractive.com the use of programmatic video advertising has gone from less than a billion dollar spend in 2014 to over $6 billion. As the use of mobile devices continues to grow the use of programmatic video within mobile will also soar. Mobile video ad spending is set to triple from 2015 to 2020 going from over $3 billion to more than $13 billion.
Programmatic native advertising continues to grow its reach with more publishers enabling native ads on their websites. This advertising channel is affected by ad blockers much less than compared to display advertising which serves as an enormous benefit to the programmatic industry. Currently, this format is used by some of the biggest advertisers and publishers in the world.
BENEFITS OF PROGRAMMATIC ADVERTISING
Programmatic advertising presents an almost endless amount of advantages to both buyers and sellers. Making data-driven decisions removes the guesswork advertisers had before programmatic trading existed. Here are a few benefits you should be aware of:
Good for your budget:
Programmatic advertising makes use of data to serve impressions to a chosen audience. This increases chances for conversions and means less money lost on ineffective advertising.
Many different data points and key performance indicators can be used to target an audience which makes reaching the right audience much easier.
Advertising campaigns are managed efficiently:
Campaigns can be adjusted and monitored as needed with very little time and effort.
Quick access to inventories:
Programmatic advertising efficiently connects buyers and sellers. Advertisers can reach audiences via publisher web properties faster than ever before and on multiple devices and platforms.
A time-saving approach:
Programmatic ad buying aims to cut out the human element as much as possible which means less time spent making deals and brokering specific price points
With programmatic advertising, you can reach potential customers worldwide by placing ads within multiple ad networks, partners, channels and geographical locations.
According to current trends and industry developments, it’s becoming apparent that advertisers and publishers who don’t make use of programmatic advertising are either leaving money on the table or wasting time on ineffective practices. As the online advertising industry gets more technology driven it’s best to adopt these practices and ride the wave of digital.
MoMAGIC can help.
MoMAGIC is driven by “Data”. We believe the best way to reach your end audience is intelligence. To get there, you’ve to have partner who can bring your audiences into view and connect your customers to your brand story in a more meaningful, engaging way. MoMAGIC is your Trusted Partner when it comes to “Digital Media”.
For many brands, connecting “Digital” data points are a daunting challenge. MoMAGIC not only bring data together but provide you with the new ways to discover and manage the customer journey.
We manage all your “Media Ecosystem” through an integrated approach and drive intelligence around “Your Data”. This fuel the growth in terms of better “Sales” thus making a competitive advantage over your peers.