There is no clandestine that new-age technologies like AI, Geofencing using location QR codes, and machine learning are penetrating everything and have entered people’s daily lives. In the advertising sector, these kinds of technologies play a significant role. And Programmatic Advertising, in this way, is on the disruptive journey with AI, ML, digital OOH, and voice search to lure more advertisers.
It is the process of automated buying and selling of ad inventory in real-time, which is done by the automated bidding system. This automation makes transactions efficient and more effective, simplifying the process and consolidating the digital advertising efforts in a single tech platform.
Today, programmatic advertising is transforming the way online display advertising works. In an eMarketer report, the spending over programmatic digital display ads reached from US$10 billion in 2014 to US$22 billion this year. It is also expected that this will be going to account for more than two-thirds of all digital display ad buying.
Why Does Programmatic Advertising Matters?
Programmatic advertising is either a software solution or the simple automation of display ad buying. It brings data into the ad buying equation and makes the process both automated and programmable by the use of algorithms and software platforms. It also trims down the key elements of traditional ad buying interaction that required a salesperson and makes the whole process more efficient.
There are several reasons why this exists in the modern marketing system.
Scalability – Programmatic advertising has robust scalability power, enabling advertisers as well as marketers to reach a large number of people all across the Internet through the retargeting method. The more they reach to people, the higher the probability of converting a visitor to a loyal customer, and ultimately a promoter. Programmatic advertising also allows them to buy any inventory available on the Internet as per their budget.
Greater Efficiency – As programmatic advertising is cost-efficient, it enables advertisers to make investments four to five times that they have spent in some cases. Its overall efficiency has greatly improved with the ability to gauge how a campaign is running throughout that entire campaign. It gives the ability to advertisers to track their campaign and make adaptions and optimizations as per the need. Moreover, optimization ensures that each campaign is running at total efficiency, and reaching those ideal targeting customers within budget effectively.
Real-Time Flexibility – With programmatic advertising, advertisers can have access to measure exactly how a creative, campaign, or overall targeting is performing in real-time of the campaign launched. It also allows them to make changes in real-time based on the impressions and analytics they are getting, which gives them to double down on the most successful ads and gain more.
Greater targeting capabilities, enhanced audience reach, increased transparency and control are also some of the key reasons why programmatic advertising is so important in modern advertising.
Future of Programmatic Advertising
Currently, programmatic advertising assists marketers to more effectively funnel messaging across multiple channels and optimize the share of attention. Conversely, it is expected that it will create an environment that allows advertisers to reach their most meaningful audiences more efficiently than ever before by making use of digital platforms to deliver the best outcomes.
Moreover, the sector will see innovations in wearables, enabling such retailers who seek to send personalized ads to target customers directly. It also makes it possible for retailers to maintain customer data privacy, and entice them to come back to the store more often.
Thus, to capitalize on programmatic advertising, advertisers need to comprehend its potentials in their advertising campaigns.