There are a lot of people tossing around the term “Programmatic” these days. Nonetheless, not everyone who has adopted this buzzword actually understands just what it is.
The idea of programmatic advertising spans a broad range of technologies that have virtually automated the methods of purchasing, placing and optimizing advertising. The human element has been replaced. Phone calls, faxing and lunch appointments are no longer a necessity for buying and selling advertising. With the new programmatic technology, marketers can purchase ads just like they would buy an item on Amazon or make a bid on eBay.
As much chatter as there is about this new form of marketing, you’d think that the entire advertising universe would have at least started to utilize it, but in actuality, it’s still sitting on the ground floor. However, the elevator is rising and anyone who wants to stay competitive will soon be fully onboard. It is projected that in the U.S. alone, the spending on programmatic marketing will reach 9.8 billion by the end of 2014. That equates to approximately 20% of the digital ad market.
To many, programmatic buying sounds very complicated, but it’s actually very easy to understand. The word “programmatic” simply means automated. Many mistake it for ad purchasing through real-time bidding (buying ads through computer-run auctions). However, that’s just one way to programmatically purchase ads. Simply put, programmatic buying is buying any ad that is processed via machines.
Back in the day, in order to book a hotel room you had to go through the front desk or through a travel agent. If you wanted to purchase an item, you had to go to the store, or order it through a catalogue, sending a check for payment. If you wanted to purchase stocks, you had to be on the floor at the New York Stock Exchange. This is no longer the case. Hotels can now be booked online; purchases can be made the same way, as can the acquisition of stocks. There have been billions of dollars invested over the past decade, betting that marketing would take this turn, and that’s just what it’s done! There has been a complete paradigm shift in not only the manner in which advertising is purchased, but also how consumers are effectively targeted and reached by the marketers.
Programmatic advertising is not only more effective, but also the advertiser gets way more bang for the buck! The transactions are much more efficient when they are automated, and the messages get to the audience that will most appreciate, and have the greatest need to purchase the goods or services that are for sale. There is no doubt that if more advertisers had a greater understanding of programmatic, they would be spending more on it. They tend to think about bottom-dollar auctions when they hear real-time bidding. They are aware that millions saw their ad, but they don’t know which sites they were seen on.
The Association of National Advertisers conducted a survey to determine how many marketers knew what programmatic was. Out of 153 surveyed, only 26% were aware of what programmatic was and had actually used it. The rest were unclear about it, or had never even heard of it. Even those who are using programmatic tools to purchase media may not know exactly what it is and what it means.
The world is evolving, and our genius monkeys are evolving with it. They can help your business join the ranks of those who are gleaning the best result from every dollar spent on advertising, through programmatic.