House of Programmatic: Programmatic’s Reign Set to Continue for Digital Marketing Plans
It’s hard not to have a discussion about digital marketing without mentioning programmatic advertising. Allowing brands to extend their reach beyond traditional radio or television ads, programmatic advertising has seen businesses reach new customers online, and grow on a global scale. As the marketing industry and consumer behavior shifts, programmatic is a staple that will continue to be implemented online in the years to come.
Growing in relevance over the past five years, Digiday defines programmatic ad buying as “the use of software to purchase digital advertising, as opposed to the traditional process that involves RFPs, human negotiations and manual insertion orders.” Essentially, machines, as opposed to humans, are purchasing online ad space – allowing marketing teams to maximize their efficiency and outreach.
I spoke with Tim Tsafaridis, Sr. Programmatic Account Manager at MultiView, who demonstrated several positives that programmatic advertising offers marketers:
Everybody’s doing it
Programmatic campaigns are vital for businesses trying to extend their brand reach across a variety of online platforms, whether it be smartphones, tablets, or desktop. Without it, Tsafaridis says “many businesses will be lagging behind their competition.”
Real-time results and flexibility
Tsafaridis goes on to say that programmatic campaigns allow for transparency, meaning marketers can measure their reach over time. This can be done with an analysis of one’s Google Analytics results. Programmatic campaign set-ups are flexible – they can be adjusted in real-time, in order to help achieve the desired results. It’s a less costly approach than realizing a million-dollar billboard campaign needs reworking.
Apart from conversions, the statistics help tell another tale: Where companies would be without programmatic advertising. Tsafaridis once saw 60% of a company’s overall web traffic during the campaign’s flight attributed to programmatic.
He’s also managed a large technology company’s campaign that had a 28% decrease in website traffic merely days after the campaign ended. Marketers cannot afford to lose out on audiences, especially when the competition is focusing on the same targets.
Targeting a bright future
As campaigns change over time, Tsafaridis sees new opportunities for marketers to speak to potential clients. He believes ads will evolve to be more dynamic: “Meaning, ads that are displayed to us based not just on what our search behavior is, or what we show interest in, but by how we feel about certain subject matters; how we feel towards certain brands.”
Tsafaridis sees the future of programmatic as a way for marketers to tailor a message more effectively, rather than potentially waste of millions of dollars on advertising to irrelevant users: “I feel that the targeting will just get much, much more focused as technology evolves,” he concludes.
Tsafaridis speaks of one obstacle with display advertising, in that “more savvy Internet users are enabling ad blocking,” meaning potential clients are surfing the web completely ad-free. Marketing Land recently reported that 40 percent of people had used an ad blocker in the past month – mostly on desktop.
However, ad reach on smartphones and tablets continues to grow, and they are still viable devices on which programmatic ads can appear. Not to mention, programmatic is only one aspect of a marketing strategy – users cannot ad-block every medium surrounding them.
Tsafaridis notes that programmatic advertising “is viewed as an all-encompassing approach to advertising.” However, it shouldn’t be a company’s only approach to marketing. More traditional marketing initiatives shouldn’t be ignored. He concludes by saying that “there should be an assessment made to the industry, the target audience, as well as the marketing spend available prior to a campaign being designed.” Adding a programmatic campaign to a roster of other marketing efforts provides a company with a well-rounded approach to advertising.
The positives of programmatic advertising present tangible results and growth that marketers cannot ignore. As programmatic advertising grows and evolves, it will continue to play an important role in digital marketing campaigns in the years to come.