In the past, advertising was not as complex as it is today. A company typically would work with the advertising agency, develop a variety of concepts, define the budget, identify the audience, and then proceed with the campaign. Success was gained through brand awareness and association, not necessarily ROI.
However, over the last ten years or so, the process for advertisers and marketers has changed dramatically. Marketing is no longer seen as an OPEX function, something that simply costs the business money. It now functions as an integral part of generating revenue and reaching company goals.
Along with this change, marketers and advertisers have shifted to being more technologically savvy and data-driven than their predecessors, as well as becoming engaging storytellers and brand ambassadors.
In 2013, programmatic advertising and data intelligence began to rise. The International Data Corporation predicted a 59 percent increase in RTB (real-time bidding) display advertising, which is just one form of programmatic advertising. By 2016, it was the fastest growing form of digital advertising.
This shift has seen technology deliver accountability to the marketers and TV-radio-print spend has moved to online channels. Programmatic advertising, in general, has closed the gap on performance measures and now assists advertisers in seeing consistent returns on their advertising investments.
So what is programmatic advertising?
Programmatic advertising has been defined simply as, “Automated advertising buying coupled with machine learning.”
The Interactive Advertising Bureau suggests there are two types of programmatic buying:
#1 Programmatic Direct
Or, Premium Programmatic Advertising, which is an automated technology-driven method used for buying, selling, or fulfilling advertising.
#2 Programmatic Real-Time Bidding (RTB)
Two types of RTBs are Open Auction (audience targeting) and Private Marketplace Deals—which require a private marketplace and allow for fixed pricing and data overlays.
Programmatic advertising aligns media with brand lift metrics for consistent ROI, offers up the ability to automate insertion strategies with the most added value, and only spends money when and where it will be most effective.
If you want to know how to add programmatic advertising to your marketing plans, click the link below for more information.