Programmatic Advertising: Should You Be Doing It?

In an age when content and customer engagement are key for brand growth, programmatic advertising provides a tremendous opportunity for marketers. Nearly 70% of B2B marketers plan to increase their spending on programmatic tactics this year, and 65% are already utilising it, with 75% of the UK display ad market dominated by it.

But as with any other tactic, programmatic advertising only yields results when guided by an informed approach. Consider this your quick-hitting guide to programmatic advertising in 2017.

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What is Programmatic Advertising, and Why Should You Care?

Content is king for marketers and their audiences. It breeds familiarity. 78% of customers report greater trust in companies that create custom content, and 47% of buyers engage with brands after seeing multiple pieces of content. Platforms like Facebook have seen content consumption increase by 57% over the last 2 years. But in an era of information saturation, how can you get your content in front of the people who matter?

Programmatic advertising allows brands to purchase digital ad space for their content based on desired impressions. A computer program then leverages user data, such as demographics and online behaviour, to determine on what platforms and channels to place the ad.

Key Benefits of Programmatic Advertising

In an age where inbound strategies are thriving, how is it that programmatic is growing faster than other digital channels like social media and online videos?

  • Personalisation In a customer-centric world, it’s crucial to pay attention to your audiences’ needs. The data-driven nature of programmatic advertising makes it adept at targeting users, and meeting them where they’re at—based on their demographics and online behaviour.
  • Impressions Brands pay for a desired number of impressions and negotiate the budget with a publisher. In the evolution of programmatic, brands can divide impressions among a number of publishers, and target specific audiences.
  • Real-time Unlike pre-purchased ads that may or may not be relevant at time of launch, real-time matching of ads and platforms gives brands the ability to tap into current trends, and modify their campaigns as quickly as needed.

How Brands Are Using It

Globally, programmatic advertising is growing fast. From 2012 to 2016, programmatic ad spend grew by $34bn. Indonesia and Malaysia are leading the way in APAC with the most programmatic ad spend, and in Australia, 74% of programmatic advertising is veering toward video. By increasing their spend, mass-market brands are able to target audiences efficiently in real-time, and adjust their campaigns quickly to stay relevant and connect with their audience.

Ad buyers and publishers alike are faced with the increasing need for greater transparency. Knowing where ads might appear is crucial in the trend’s evolution, to prevent brands from being negatively affected in the long-term. As brands explore how to connect with their customers in more scalable, hands-off and sustainable ways, programmatic advertising is only expected to grow.

Final Thought

Like it or not, programmatic advertising still requires a human overlay. Unlike the algorithms, people understand the nuances of metaphor and inference. Creative campaigns for example often have soft objectives that programs for have a hard time understanding.

If you'd like to take the complexity out of staying cutting edge why not get in touch with us to learn more about programmatic, display advertising and paid media.

Author: Digital Fuel

Words by the Digital Fuel team members