The Future of Programmatic Buying
By Afia Ahmad
By now you are certainly accustomed to ads popping up on your browser. However, more often than not, these ads are pertaining to products that are suited to you. It could be things you are interested in, things that piqued your curiosity previously, things that you were considering buying. If you have completed a digital marketing course or are pursuing one, you should already have some basic knowledge about how this works.
Advertising is slowly, but surely marching towards automation. Programmatic buying is the act of buying digital ads without any human intervention. With the application of the right data, it makes ad transactions more effective and efficient in terms of the results and expenditure.
What is programmatic buying?
Programmatic buying refers to automating the marketing process, with the use of algorithms and big data, to make real-time purchases, placement and optimization of inventory via a bidding system. Programmatic media allows you to tailor your creative to a potential consumer by presenting the product at the right place, in the right way to the right person, thus delivering the brand in a precise and personal manner.
How does it work?
When you visit a website, information is being gathered to record the segment of users visiting the page. In the time that the web page takes to load – which is usually 3-4 seconds on an average; a few decisions are made based on the data that is collected about the user viewing that page. And subsequently a bidding is held and the advert space on that website is auctioned off to the highest bidder. No Advanced Excel sheets or manual tracking. This not only takes out any manual intervention, but also delivers the right message to the right user. And all this is done in a matter of milliseconds!
What next for programmatic buying?
Programmatic buying cannot replace all media marketing. However, it will soon be the most preferred method of digital marketing/advertising. It is currently prevalent in desktop and mobile marketing, but is making its foray into other mediums of print and TV, and modes are changing to include video advertising as well.
Social networks like Facebook, Twitter and LinkedIn have already tied-up with ad-tech companies to not only sell ads on their networks, but to also use the reams of their login data across various platforms to connect user identities.
Although the foundation has been set, work has to be done to make it adaptable to other media channels and eliminate fraud. At the same time publishers should be willing and accepting of the new mode of advertising.
Programmatic technology has not only helped in establishing a fair, transparent and cost-effective marketplace, but also consolidated customer interactions into a single dashboard. It has further consolidated the business analytical process for pricing models. All of these aid in developing the most effective strategy to engage with the product or brand audiences.
The reach and benefits are far too attractive for programmatic advertising to become the future of all advertising.