Artificial intelligence technologies have algorithms that analyze a visitor’s behavior allowing for real time campaign optimizations towards an audience more likely to convert. Programmatic companies have the ability to gather this audience data to then target more precisely, whether it’s from 1st party (their own) or from a 3rd party data provider.
Programmatic media buying includes the use of DSPs, SSPs and DMPs. DSPs, (demand side platforms) which facilitate the process of buying ad inventory on the open market, provide the ability to reach your target audience due to the integration of DMPs (data management platforms). DMPs collect and analyze a substantial amount of cookie data to then allow the marketer to make more informed decisions of whom their target audience may be.
On the publisher side of things, publishers manage their unsold ad inventory through an SSP (supply side platform). An SSP reports attention data such as how long a visitor was on a specific site or how many pages were viewed per visit. SSPs will ultimately be in charge of picking the winning bid and will serve the winning banner ad on the publisher’s site.
Programmatic advertising was essentially designed to be scalable, efficient, and precise. So why are some marketers and brands hesitant to give it a try? There may be multiple reasons why brands are unsure about this type of advertising, but I will address the top three industry concerns when it comes to launching a programmatic campaign and explain how technology is currently improving to solve this issues.
Ad fraud is a huge concern when executing a programmatic campaign, or a display campaign in general, as more than 1/3 of online traffic is fraudulent. With advancements in programmatic technology, we can identify fraudulent traffic based on the behavior of the user. Over a short amount of time, the technology continues to learn which leads are lower quality, allowing marketers to pivot campaigns towards the types of leads that are more likely to convert, ultimately increasing overall ROI.
With programmatic advertising, you can adjust your campaign based on if the inventory is above the fold (ATF) or below the fold (BTF), allowing for a more strategic campaign based on your end goal. If a campaign is more of a branding initiative, ad placement may not be a huge focus for the overall campaign. However, if a campaign is focused on generating leads and conversions, ad placement that is ATF would be the priority to gain max visibility.
Companies that specialize in ensuring brand safety are now integrated with many programmatic advertisers. These companies, such as Integral Ad Science, strive to ensure that ads only appear on brand safe pages. With programmatic, marketers have the insights they need to garner the best results for their campaign.
Although there may be some concerns, I do believe that programmatic advertising benefits outweigh the concerns as programmatic technology is continually working towards identifying and solving these issues in an effort to further fine-tune marketers’ campaigns. The following are five top benefits of programmatic advertising that can help improve any marketing campaign:
Kellogg® launched a campaign with Google to help facilitate an increase in their offline sales. Their main KPIs were viewability, targeting index and frequency. Viewability was measured with DoubleClicks Active View which showed that with the launch of their campaign, the viewability rate increased more than 70% due to programmatic’s ability to optimize towards the specific goal. Kellogg was also able to leverage audience insights and contextual data to then understand more about who their customers are, which led to a 2-3X increase in better targeting across channels. Programmatic buying allowed Kellogg to move consumers through the path of purchase by displaying their brand 24/7.
Google is even embracing programmatic marketing strategies, hoping to expand more into mobile and video in the future. The company says that in order to make brand advertising work, they have turned to programmatic due to the many advantages it offers, stating numerous times that the biggest advantage is the ability to adjust the campaign in real time. They ran a campaign for their Google Search App and saw that they were able to reach 30% more people 3X more frequently with 30% lower CPMs. Google also saw a 50% lift in awareness when they leveraged the 3rd party data provided by programmatic companies versus using only first-party data for their campaign.
Instead of planning your media buy on where you think your customers are, start focusing on the overall strategy and goal to reach the audience you want. With the ability to adjust the campaign in real time based on the insights gathered, you start to better understand who your target audience is, allowing for further refinement across all marketing channels.
For example, Google recently released the ability to target by specific demographic on the display network (age, gender, or parental status). When you run a programmatic campaign, you are constantly gathering consumer data points to learn more about your converting audience. With the ability to gather these audience insights, you can then take these learnings to your Adwords campaign to create a more holistic marketing strategy.Additionally, you use other channels to improve your next programmatic campaign. For example, take your audience insights from a Adwords display campaign to then build your target audience for programmatic.
Instead of compartmentalizing your marketing strategies, start focusing on incorporating all efforts as one large overarching marketing plan to improve ROI across all customer touch points.