Programmatic advertising provides marketers with an efficient and cost-effective way to run campaigns and reach target audiences. While programmatic advertising has only been around a few years, its importance in creating successful campaigns has dramatically increased over the years. This type of advertising is expected to grow, and 2015 has already been a game-changing year for the industry.
New Programmatic Advertising Trends:
1. Programmatic Spending Will Increase
As marketers begin to see the benefits of programmatic buying, marketers will, in greater numbers, shift their budgets over to this type of automated and targeted advertising. It is predicted that in 2015 over 50% of ad budgets will be spent on programmatic advertising.
2. It’s Getting Even More Personal
Most marketers have already embraced some form of personalized advertising, but the focus on personalization will increase substantially this year. Internet users will start to see ads based on their interests, habits and long-term online searches and buying history. Millennials (an extremely large and growing buying audience) actually prefer that ads be personalized based on their preferences and interest. Personalized content has led to higher brand favorability, purchase intent and overall conversions.
One of the greatest concerns for marketers about programmatic buying has been the quality of the available inventory. The problem with poor inventory is that the intended target may never see the ad, and marketers may be actually spending money on impressions that appear below the fold – which is really a waste of money and leads to negative ROI. Better quality inventories ensure that companies are bidding on the right types of ads and eliminating waste.
4. Better ROI with More Targeted Messages
Ensuring that the right message was getting to the right audience, within the right part of the sales funnel used to be a major concern that could keep marketers on edge throughout a campaign. Audiences need to be hit with the right messaging depending on where they are within the funnel. For example, someone who is at the top of the funnel probably won’t respond to a hard sell like bottom of the funnel prospects. These audiences need brand awareness messages first, but they should still fit the company’s typical buyer profile. Retargeting campaigns can also fail if you don’t look at the patterns in the audience’s behaviors, demographics and profiles.
This year, the role of the data management platform (DMP) will rise in importance as a way to ensure that marketers have access to every available data source, including online and offline first and third party data to obtain information for targeting audiences at every part of the funnel. Marketers will no longer solely rely on third-party cookies.
5. Won’t Be a One-Stop In-House Shop
While many smaller companies are going to continue to do most of their own advertising in-house, larger companies will look for a skilled, data savvy, agency partner to either do the lions-share of the work or at least partner with the company on programmatic advertising. A skilled agency is important for marketers since these people have the skills required to run a successful campaign, the time to devote to it (many in-house folks don’t) and understand the importance of real-time buying.
6. Programmatic TV to Come in Stages
There is incredible potential for programmatic TV success. However, it lends itself to be a bit more complicated that other channels due to marketers needing access to the inventory from cable companies, broadcasters, and networks. While adopting this channel for programmatic may take time due to backend operations, scheduling, and ad trafficking, TV is certainly programmatic bound.
Additionally, users will see ads from programmatic buying if they have streaming apps like Amazon Fire or Apple TV. It just won’t hit the cable users for a while. Streaming ads allow marketers to connect with audiences no matter which device they’re using. Plus, TV viewership is rapidly declining, which means that marketers will be forced to reach audiences via video streaming services.
7. Expect Programmatic Advertising to Show Up on More Devices
With more and more devices being released all the time (think Apple Watch), expect programmatic buying and personalized advertising to start being seen on new and different mobile devices and wearables.
While programmatic buying is still relatively new, marketers have quickly embraced it and have started devoting more of their advertising budget to it. Marketers want more ROI-based campaigns, and they’ll employ agencies to assist with running these campaigns. Advertisers will start using programmatic buying in nearly every medium/platform where it’s available – even if TV advertisers are slow to embrace it.
Moving forward, brands that excel will be those that embrace this automated technology. It is proven that delivering highly personalized content to customers based on audience data drives conversions and builds lifetime customer value. If you haven’t gone programmatic, it’s time to get on board.