Recently, CPC Strategy, a retail-focused search management company, hosted a webinar to help their listeners understand the basics of programmatic advertising and how it can be used in retail-targeted campaigns. Katana’s JJ Bannasch was the speaker for the webinar, which focused on what programmatic is, the challenges associated with it and how it can be beneficial for retail marketers. Here are the top insights from this programmatic 101 presentation.
1) 55% of the attending audience didn’t know what programmatic is, and they wanted to learn about it. While programmatic may be a buzz word within the industry, many retail marketers still don’t know what it is or how to use it. A lot of people are still confused as to what programmatic means – and what it means for their business. Katana’s definition of programmatic is automating the buying, selling, delivery and optimization of media based on rules, algorithms and human input via data and technology to improve workflow, efficiency, effectiveness and campaign optimization agility.
2) Programmatic is a great fit for marketers. Retail is a perfect fit for programmatic. Stats from eMarketer are currently showing that many retailers are already using it. Marketers in the retail space are currently spending 70% of digital display budgets on programmatic, and 25% of total programmatic media will be generated from the retail industry. Retailers already have a lot of data, which can be used for programmatic. The more data that you can put into programmatic, the more successful you will be.
3) The benefits of programmatic are many. The major benefit of programmatic is that it minimizes the waste associated with typical media spend. It uses real-time data to make campaign decisions, including audience value and relevancy. The pricing is based on this audience value, and marketers can also use this real-time data to target specific audiences. Audiences also receive more targeted messages that correspond to what they’re looking for – and where they are online. Programmatic allows marketers to target people who are in-market to buy their products.
4) Programmatic comes with some challenges for marketers. Programmatic is an extremely crowded space with a lot of different companies trying to sell it, and many different technologies and options available. Understanding these different technologies and options can be very confusing. The number of layers to optimize around and to do programmatic effectively can also be extremely bewildering and cumbersome for marketing teams. There are large sets of data and analytics – and marketers need to respond quickly to adjust their campaigns based on this data and analytics. It takes a lot of resources to run programmatic because it’s real-time. Many marketing teams simply don’t have enough resources to do it successfully. This is where agencies can be of assistance. Programmatic also requires a number of different tools. A single tool won’t be enough to encapsulate all the different requirements. The programmatic industry itself also has issues. There’s a lot of fraud in the space, and you have to ensure that you are buying ads that will actually be seen.
5) Don’t just focus on the conversion portion of the funnel. The whole funnel is important from social down to conversion. Only focusing on one area will limit your campaign success. Companies should take advantage of all aspects of the digital marketing funnel. Programmatic is not for just a single solution: conversions. You can use programmatic for brand/product awareness and improving prospecting, which are higher-funnel activities. Programmatic streamlines decision-making as far as targeting. These data and insights can then be used to build models and refine overall strategy, approaches and creative. Marketers can also use programmatic to be smarter with retargeting.
6) How a marketer can get started with programmatic. There are different ways to get started with programmatic. Marketers can self-manage their own campaigns, which can be difficult and resource-intensive for many companies. Agencies or partners can fully manage the client’s’ campaigns. Agencies can also just be used for tactical management, i.e. only using an agency to run retargeting. With shared management, agencies and clients work together. It allows clients to be very involved in programmatic depending on their resources and company size. For example, shared management allows the marketing team to control and segment their own data, and the agency/partner can use this data to run programmatic campaigns. The marketers do some tasks on their side, and the agency other tasks.
Programmatic takes a lot of work and resources to be successful. Yet, with the right resources and partners, programmatic can be extremely beneficial for retail marketers, especially in supporting overall business goals and strategies, and improving ROI. It can also lead to larger revenue streams over time.