Probably you remember first time of meeting gluten in the content list of some products and wondered a lot what it is about. A lot of marketers used to react in the same manner and saying “wtf is programmatic”. The notion seems to be quite familiar nowadays, but there are a lot of those who are very skeptical about it. Let’s study what it is about and what you can take from it for your business.
Programmatic covers a wide range of things that lead to automation of such processes as display, buying and optimization of ads. There is no need anymore human interactions, lunches and faxing. Using programmatic technology, an advertiser, as a media buyer, can obtain some ad inventory or make purchases on Amazon or bet on Ebay.
What does programmatic media buying mean?
To say it simply, it is the way to automate ad buying. It is a common case to mix this approach with RTB where people are just partially right saying they are the same. The difference is that RTB is one variant of realization, the same as Chevrolet is one brand in great variety of automobiles.
To sum up, we can say that programmatic is any case where ad buying is performed with robots’ help.
What is the reason of the buzz around?
Just remember how difficult it was to book a room in a hotel: there should have been an obligatory call to the place itself or sometimes aid from travel agencies was required. Stock exchanges also required personal attendance for those who wanted to obtain some shares. However, nowadays we have our hands untied to do it not just remotely, but in automatic mode.
Brian Lesser from Xaxis calls it a fundamental change not only in media buying, but in the level of efficiency between a brand owner and consumer.
What about the costs?
Algorithmic buying is a wonderful chance to tidy little sum. The deals after automation become more effective. In a result, complex and time-consuming, and obviously expensive, tasks can be skipped and excluded.
According to MagnaGlobal Interpublic CEO, it would be perfect if technologies could deal with difficult and routine tasks requiring a very strong concentration, while people could spend their time for the area they are more skilled – creativity.
Is automation unescapable for all advertising?
Well, who knows, but Adsmediabrokers team certainly don’t think so. The point is that content is very important for deep integration and some rating events cannot be performed with the help of programmatic. However, the lion’s share will be.
Such business sharks as Procter & Gamble, American Express, Unilever, Netflix, Kimberly-Clark, Mondelez and a dozen of others have already accepted it. Some companies started with 5% of programmatic while now the amount is greatly more.
If programmatic is so cool, why it is not dominating still?
Partial answer is about mixing the notions for programmatic and RTB. However, it is only half of the problem. Recent studies among marketers have revealed that there is less than a third part among 153 marketers who use this technology. Others feel unconfident about the approach or need extra information and, may be, tutoring. The bitter truth is that even those who have already adopted technology sometimes hardly understand how it works and what its general idea is about.
Some words about fraud
Traditional digital advertising does have great problems in this area. That is why all business participants in the area of advertising have come to the idea of transparency. Now we are standing on the cusp of a new age where the price is formulated when everything is clear as a sunny day.
Is programmatic beneficial for publishers?
Certainly, yes. But the process is too slow nowadays, and they have their reason not hurry. There will be no use for inventory owners to participate if they are used for making campaigns cheaper.
However, such giants as Forbes or The New York Times have found a way out and created their own ad exchanges.
Programmatic direct is gaining popularity. It means that brands order traffic directly from certain publishers, but they are still offered the same amount of benefits RTB supplies with.
Programmatic is well-developed technology nowadays so that it can be compared with magic. Are you ready to believe in wonderwork?