Amidst the ever-evolving and globalized information economy, the promising potential of programmatic advertising can help the marketers meet, if not exceed the need and expectations of consumers who are standing on the platform of personalization carving and “internet of things.”
And like most aspects of marketing automation, programmatic advertising streamlines the nitty-gritty processes of marketing. Before the technology-infused strategies of buying and publishing arise, the practice of digital ad buying has been the custom of salespeople and ad buyers.
The programmatic potential
In all fairness, a Programmatic ad is data-rich. Its systems encapsulate as well as access the reams of data from third parties to help the advertisers decide on where and how to invest their ad dollars.
It can also target and drill down audiences by location, time of the day, and behavior. The probability of getting your ads in front of the right audience at the right time has never been greater.
In the year 2020, programmatic ads are expected to account for 85% of targeted banners and 67% of video advertisements. But of course, programmatic ads are not free from downsides and hassles. Still, marketers and advertisers haven’t tapped the full potential of programmatic and advertising technology.
Marketers and advertisers should be free from the web of mediocrity and stagnation this year. There are useful tips that they can use to enhance their programmatic ad goals this year.
The clarity of purpose
Setting an explicit campaign objective is a must for every business objective. Advertisers and marketers alike should have a strategic plan when it comes to traffic, targeting, marketing budget for small business and the ultimate goal of a programmatic ad.
According to Jeff Smith, owner of the small-town dealership of Chevrolet, digital advertising boosted the sales by 50%. It is a perfect example of how marketers incorporate advertising objectives with business goals.
Predictive analysis, third-party data and machine learning are just some of the advancements that advertisers and marketers can utilize to target the consumers effectively. Moreover, decisions based on data are more reliable and less risky.
Optimize, customize and monitor your programmatic campaigns. What works for one campaign could be disastrous to another. It’s the reason why conducting tests, retests, and experiments, optimization, and monitoring results using real-time data are important.
Bonus Corner: Additional Tips For Marketers
How to use effective data for programmatic advertising
Comprehending behavioral insights from data is the first step in conjuring an effective programmatic strategy. There are three pillars of data to consider, first-party data, second-party data, and third-party data.
First-party data is the advertiser’s set of data on their customers. Second-party data is a collection of data from other parties aside from advertisers and agencies who share data with various brands to help build the programmatic strategy. Third-party data, on the other hand, belongs to the public at a certain cost and is typically sold on a rate card basis.
Brands should treat data as customers or potential customers. The act of sending messages to the existing customers about updates to new product offers is called retargeting. And to develop beyond retargeting, brands need to use data to look for new prospects in the existing customer base.
How to find the right programmatic model
There are various models for programmatic relationships. Below are the summaries of these models and their pros and cons to the advertisers and marketers.
- Agency owned and operated. The most primordial of the arrangements, brands within this model work with different advertising networks. These brands may have confidential media markups from the agency team. The pricing starts on a dynamic or flat CPM which includes a significant margin that advertisers aren’t aware of.
- Advertisers use agency platforms for analysis. The precise balances on the trading desk improve insight with promising rates. These renewed contracts are the front-runner for advertisers. As a trade for funding the staffing costs, advertisers are the ones who will receive the clearing costs of media and all sectors associated with platform fees and third-party data.
- Advertisers work with third-party trading desks. In the same manner with agency platforms, advertisers have the option to work with the trading desk that operates as an independent party. The client has a direct relationship to the trading party and has the liberty to separate budgets for the third-party trading desk. Advertisers and marketers can also operate independently, off the hook by the agency-of-record.
- Advertiser-owned, agency-executed. For more experienced advertisers, the early step to acquiring a programmatic contract is to build a relationship with the Demand Side Platform or DSP suppliers. The merchant meets with the major suppliers to select the best platform and then creates contracts directly. The advertiser then secures and licenses its seat in the DSP to the agency, and pays its crew to operate and maintain the program.
- Advertisers operate for a regional or global model. Advertisers under this model can choose to work with DSP or trading desk providers on a local or global level. Brands can also team up with different providers per region where specialization may supply better access to inventory, data, support, or target or depend on what the region can offer.
- Advertiser-owned and operated. The most extreme among all programmatic models is to take both the management of media buying and contractual ownership in the house. So far, this model is feasible for big advertisers and those within progressive cities like New York or London where there are ample resources to make these roles operational.
Suffice to say, programmatic advertising is not only a fad in the digital marketing industry, but it will also stay as long as the demand for seamless and timely advertising campaigns are visible. Of course, now is the best time to upgrade your programmatic ads with creative, efficient, and compelling campaigns that will skyrocket the status of your brand to the digital stratosphere.