- Posted by Tim Thiel
- On April 8, 2016
“Programmatic” has become a buzzword in business recently. However, it’s a buzzword that many people talk about, but few fully understand. They know it’s important, but they’re not sure why.
What is Programmatic Advertising?
Programmatic advertising is the purchase of media inventory based upon audience-focused factors. In the B2B community, programmatic advertising has become a key for companies who are looking to get ahead of their competition. It is an innovative tool that helps businesses better connect directly with their customers.
Programmatic simply just means “automated” – the process uses automated technology (or artificial intelligence) and real-time bidding to both buy and sell digital media across a number of different types of websites. It utilizes social media advertising, mobile and video campaigns, and it is even expanding to traditional television advertising marketplaces.
This is faster and more effective than simply relying on people to secure your ad placements. Simply put, if you are using a machine to deliver, purchase and optimize your digital ads, you’ve used programmatic advertising.
With programmatic advertising, everything is done via programmatic technologies which can help you choose the right day of the week to advertise, the right time of day to place your ads, and how often to promote your product or service. This allows you to directly target the audience you are looking for at the optimal times to connect with them.
Programmatic technologies will apply to each and every impression available to advertisers, and are generally safe to combine with any of the larger advertising tactics.
A Small Percentage
With all the talk about it today, you would think that all advertising is programmatic, but in truth, just a small percentage of online ads are purchased using programmatic technologies.
However, Magna Global projects that, by the end of this year, programmatic spending will reach nearly 10 billion dollars in the United States alone. This will be about 20% of all digital-ad marketing. Simply put, this means that programmatic technologies will grow by leaps and bounds.
Why Does Your Business Need It?
Once upon a time, booking a hotel room meant calling the hotel directly or going through a travel agent. Buying stocks meant you needed to be right there on the New York Stock Exchange floor. The internet changed the way we did everything. Now, programmatic advertising will change the future of media. It will shift how media is purchased and how advertisers engage with their customers, making the entire process more effective.
This means you save time and you make more money. Programmatic advertising saves you money because automated transactions are more efficient as it cuts out a number of operative tasks and it cuts out a number of middlemen (all of whom charge money).
Looking towards the future, Magna Global predicts that as much as 50% of all media buying will be done programmatically by the end of 2016.
Earlier this month, Ad Age reported that a document sent out by American Express stated that its goal was to spend 100% of its online ad budget programmatically.
Right now, most advertisers don’t understand programmatic advertising, but once they do understand it and see its benefits, more and more companies will be buying in.
This year a survey by the Association of National Advertisers found that only 26% of respondents said they knew what programmatic buying is and have used it. The rest said that they were either completely unaware of programmatic advertising or simply unclear on what it was.
V Digital Services
If you are ready to enter into the future of advertising, consult with V Digital Services today. Our experienced team can help you get the most value for your digital advertising dollars by using programmatic advertising.