“Programmatic” is currently a buzzword that few people, outside enterprise SEO level professionals, really comprehend. They know it is something they need to learn about: for reasons unknown.
The phrase includes an array of technological innovations which have started automating the purchasing, positioning and optimization of advertisementing at the enterprise level: changing the process from human-based techniques such as telephone calls, emails, faxes and, of course, three-martini lunches. With programmatic systems, marketers can purchase advertisements the way they buy a product on Amazon or an make offers on auction web sites.
With all that’s been written, it is easy to think that programmatic has taken over the advertising world. However, it is only a small portion of the online-display advertising market. The buying arm of Interpublic Group of Cos, Magna Global projects, forecasts that programmatic spending will rise to as much as $9.8 billion in the US for 2015. This would account for around 20% of the entire digital-ad market. Additionally, Programmatic technologies have matured to the point that brand dollars are moving on to other media formats like radio and TV.
I would like to provide some insight into how to use this marketing tool and show how programmatic buying is a fairly simple process despite some popular misconceptions..
Here’s what you need to know.
What exactly is programmatic?
Programmatic basically indicates automated. Many people get it confused with purchasing advertising campaigns via computer-run online auctions — called real-time bidding — however this is only one strategy used to purchase advertisements programmatically. At its essence, programmatic purchasing is any kind of ad order that is processed via computers.
Why are people discussing it?
Do you remember when making a reservation for a hotel room required contacting a concierge or travel agency? Or perhaps when purchasing stocks demanded being on the floor of the New York Stock Exchange? During the last decade, billions of dollars have been invested on a wager that the advertising industry is likely to be next to go through an equivalent radical transformation.
How expensive is it?
Simultaneously, it could include a multitude technical distributors that allow some categories of targeting or confirmation, and all of them gather fees in the process.
In a perfect universe, computerized systems will automatically manage data-heavy procedures.
Years ago, many actions were manually done and there was a lack of granular reporting. So many advertising campaigns were like throwing darts at a dart board. Now, companies cookie visitors to their websites and follow them online. Data then becomes available that details the websites they visit, how long they stay, and where they engage. .
After trying a few different display campaigns using several different ad networks for a financial client of mine, I was getting static results: receiving the same amount of traffic and about the same number of leads. I was not able to reduce the cost per lead for my client.
A business colleague suggested I research how to use Programmatic advertising. I went with a programmatic company that offered an automatic bidding approach to advertising. Programmatic advertising is a more efficient way of advertising. After a few months, I noticed a 10% increase in lead conversion rates and I was able to gain more insight into user behavior, timing, and trends. We budgeted about 10% of our monthly SEO budget to programmatic
Programmatic gets to a very granular level and it thus provides incredible analytics. Some programmatic companies have moment scoring, so within seconds their automated platform was able to make accurate decisions on where to place my ads and the price to bid.