The world of electronic media is continually changing, morphing into new, improved mediums for advertisers to peddle their goods.
In this day and age, virtually every media platform has been permeated by programmatic ad buying, and amongst those taking notice are the brand marketers. Last year (2013) these marketers spent over $3 billion purchasing programmatic ads. What’s more astounding is that experts estimate that within the next three years, this number will soar to $8.5 billion! There are some major brands that have created in-house teams to handle their programmatic ad buying as they spend more on this type of advertising.
In the year 2013, close to half of the budgets of many brand marketers were set aside to spend on programmatic ad strategies, and that number is expected to escalate 50% to 83% by the year 2017. Trending in such a fashion, by 2020 nearly 95% of digital ad purchasing will be done programmatically. However, marketers must gain an understanding of the technology, which is continually changing, in order to take advantage of these programmatic ads and gain the highest momentum they can achieve from them.
What Does Programmatic Mean?
A programmatic ad basically refers to the implementation of software to purchase digital advertising, rather than going with the conventional method that involves human negotiations, RFPs and manual insertion dollars. Simplified, it’s marketers that are buying ads with machines. This method is more efficient, and delivers the same content that brand marketers are already pushing. This system optimizes ad placements automatically, and markets inventory at a price based on what advertisers are willing to spend for it. Nevertheless, there are challenges with programmatic, just as there are with any breakthroughs in technology.