The top 5 reasons you should use programmatic advertising
Here are 5 good reasons why you should make your advertising programmatic.
1. Spend your advertising budget wisely
Programmatic display advertising allows you to target users on a granular level. With access to incredible amounts of data at your fingertips (GDPR compliant of course), you can target viewers with the right message, in the right place, at the right time. This means you’re using your ad budget smarter, eliminating waste on viewers who are unlikely to be interested in your product.
2. Real-time measurement and optimisation
With programmatic advertising, the performance of each ad is measured in real-time. Now, advertisers need not wait for an excel sheet from their media agency weeks after the ads go live – too late to optimise a live campaign.
Programmatic allows advertisers to adjust and optimise ads there and then to test and improve results as well as have clear oversight on their ad spend.
3. A transparent way of buying media
In the days before programmatic advertising, brands would be forced to rely on agencies and third parties to handle their ad spend. Now, brands can have full transparency over fees. Plus, exactly where and how much of their money is being spent on what.
4. It’s not all about the data
Of course, targeting through programmatic advertising doesn’t have to involve knowing everything about a user. That’s where contextual targeting provides a seamless – and less intrusive – way of reaching your desired audience. This way, you can target users based on keywords and contextual relevance of a page.
5. Multi-channel and format reach
With the increasing number of digital touchpoints of your average user, your advertising should be keeping up. This is where programmatic advertising is leading the charge. It allows you to reach audiences across devices: on mobile, desktop, tablet, in-app, via TV and even out-of-home. The possibilities are endless!
How do you buy programmatically?
Before you begin buying programmatic buying, it’s important to ask the right questions and get a clear strategy in place for what you actually want to achieve.
The three major questions you should ask yourself are:
- Can it help us reach our target audience?
- Should we use programmatic for brand awareness or for driving conversions?
- How will programmatic advertising improve my bottom line?
Once you know the answers to these questions, it becomes easier to determine exactly what you should prioritise when it comes to budget and ad placements for your programmatic advertising strategy.
Of course, after you have determined the right strategy, you must pick the right DSP for your brand. There is a multitude of providers out there so make sure you’re asking the right questions from your DSP too.
The key factors you need to consider when choosing a DSP
- First, consider the audience you are hoping to reach. Which DSP offers the most reach, segmentation, and channels aligned with your target market? Remember, SSPs are better than others in some countries, so select the DSP that aligns most with your markets. And make sure to pay attention to what publishers your DSP associates within each target market.
- How does your DSP charge you? Is it on a cost-per-thousand (CPM) or cost-per-click (CPC) basis? Typically, DSPs that charge on CPM are more transparent with their cost margins.
- What support facilities does your DSP provide? You might prefer a DSP with an agency style set-up, where you can get the support you need in launching and optimising your campaigns.
- Check whether your DSP can execute an effective cross channel strategy should you desire it.
- Consider how a DSPs can integrate with your chosen data management platform (DMP) or creative management platform (CMP). Smaller DSPs are more likely to be flexible on integration.
- Ultimately, as Bannerflow Product Owner, Jared Lekkas, states: “you get what you pay for”. Do your research on what you need in terms of targeting, optimisation, and control. Be ready to pay for it if you want quality! (You can expect hidden fees if the price is too low)
With your strategy and the right technology in place, your programmatic advertising campaigns work in a similar manner and best practice to any other digital marketing campaign. Make sure to test different messaging and creatives, target different personas, and experiment with new placements and bid strategies.
What is the future of programmatic?
Programmatic advertising is nothing new, yet it’s in constant change. New technologies, regulations, and best practice make this an exciting element of digital marketing. Yet, what should you look out for in the future of programmatic?
The battle continues over privacy: personal data and how advertisers can use it
In 2018, the European marketing industry was transformed with GDPR, it placed restrictions on the use of third-party data and how advertisers could use personal data for targeting use.
Thanks to increasing difficulties with tracking imposed by different browsers, cookies are becoming less and less effective for targeting.
Expect to see the rise of deterministic and probabilistic tracking. Read more about the two different methods here.
The influence of AI on media buying and programmatic creative
Artificial intelligence has a number of uses in programmatic advertising. We’re already seeing a significant impact in personalisation and optimisation of creative with the rise of dynamic creative optimisation (DCO).
Plus, IBM Watson has proved that it can drastically reduce CPC using AI technology.
In-house programmatic advertising
96% of those surveyed from the Bannerflow/Digiday State of In-housing report stated that advertising technology was the driving force behind their move in-house.
In an age where transparency in digital marketing is a key consideration, brands taking control over their programmatic ad production and buying comes as no surprise.
Programmatic advertising is constantly evolving and staying on top of the latest technologies and strategies is an important part of an effective programmatic strategy.
What is programmatic creative?
We define what programmatic creative is, what it includes, and suggest different programmatic creative technologies by answering the following questions:
- What is programmatic creative?
- Why use programmatic creative?
- Why is the “creative” part of programmatic creative so important?
1. What is programmatic creative?
Programmatic creative is the automation of the building, publishing and optimising processes of display advertising. It is an umbrella term for a range of different dynamic strategies and technologies, all of which aim to add speed, scale, relevance and performance to display campaigns.
Programmatic creative is also a result of the adoption and growth of a range of programmatic advertising technologies. Programmatic advertising being the automated transaction of buying and selling of advertising online.
2. Why use programmatic creative?
Today, programmatic advertising is how the majority of display advertising is served. It is highly unlikely that a marketer will not buy inventory programmatically. It is, therefore, the default method of publishing display advertising.
Indeed, in 2019, US total spend on programmatic advertising is set to reach $59.45 billion, and account for 84.9% of all display advertising. By 2021, the prediction is that it will account for 88% of all US display advertising, and spend will reach over $81billion!
Using programmatic creative technologies, such as creative management platforms (CMPs) enables marketers to make the most of this growth. Marketers can benefit by combining ad automation, data and creativity to increase their display advertising performance.
3. Why is the “creative” part of programmatic creative so important?
If done right, programmatic creative is an effective way for marketers to stand out in an ever more crowded field. This is especially important as more and more advertisers are using programmatic display, and the cost of entry is getting lower and lower. But why is the “creative” part of programmatic creative so important?
Firstly, “creativity” within programmatic creative doesn’t just mean design! It is the way in which marketers use programmatic buying to target (and retarget) consumers. As any media buyer will tell you, you can use data creatively to reach the right customer at the right time, with the right message.
Secondly, marketers need to remember that behind every ad is a real customer. To stand-out and be impactful having the right message, at the right time, is no longer enough. You must also reach your target with the best “creative” combination. As Zoe Harris, CMO of GoCompare writes in Marketing Week, “a poor story can’t be helped in any channel, no matter the spend that’s put behind it”.