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Programmatic Advertising Trends In 2019
- Enter, programmatic advertising. In 2019, 65% of all digital adspend is expected to be programmatic. And in 2019, that number is seen to rise to 80% in the US, Canada, UK, and Denmark.
Shopify has previously highlighted the need for dynamic ads and has offered advice on how to automate it to help boost your brand. However, in 2019, it’s not just enough that you know when to post on Facebook to get the most engagement: it’s important that you find a smarter way to advertise.
Enter, programmatic advertising. In 2019, 65% of all digital adspend is expected to be programmatic. And in 2019, that number is seen to rise to 80% in the US, Canada, UK, and Denmark.
This article will discuss what programmatic advertising is all about and how you can leverage it for your brand.
Programmatic Advertising Defined
Digiday simplifies programmatic advertising when it said: “It’s using machines to buy ads, basically.â€
Traditionally, ad space was sold and bought by humans. Requests for Proposal (RFP) were made and sent, multiple meetings were set, and negations dragged on before the advertisement was actually published. This meant the advertisers could be losing valuable real estate if they do not successfully secure an ad space. On the other hand, agencies may be putting money into ad spaces that might not actually be seen by their target audience.
Essentially with the automation of programmatic ad buying, these risks are minimized. Advertisers get an agreed upon number of impressions per ad space, provided that the publisher is targeting their buyer personas. Instapage expounds on when it said that when you buy ad space through software, you rely on “complex algorithms to deliver advertisements contextually.†This also makes the entire ad buying, targeting, and placement process possible in less than a second.
How it works
Agencies and advertisers use a demand-side platform (DSP) that helps them decide which impressions to buy from publishers, and how much they are willing to pay for them. On the other side, the publishers have their own platform, the supply side platform (SSP), which shows available ad spaces.
These two platforms are then paired in real time, so advertisers can see how their ads are doing. In case you see an opportunity to amplify or modify your message, then you can bid for more impressions. If not, then your continuous campaign will run as planned.
This transparency and flexibility are what make programmatic advertising a growing industry. As alluded to earlier, an estimated $84 billion will be spent on programmatic ads in 2019. And with features like cross-device campaigns, and improved retargeting, the industry can only be expected to grow.
How Programmatic Ads Help You Reach the Right Audience
It has always been a challenge to get ads in front of the right audiences. With programmatic ads, you can place your ads based on your buyer persona’s age, social status, gender, and even geographic location. By design, you will be paying for highly effective and targeted ads that are delivered to the right users at the right time. This is akin to having your online store work across all devices.
What’s more, once paired with analytics and its real-time insights, you can get valuable lessons on how you can improve your campaigns immediately. This has the added benefit of enhancing your targeting approach so that it will be spot-on in the future.
Now that you know what programmatic ads are and how they can be helpful, here is how you can incorporate them in your strategy this 2019.
How to Maximize Programmatic Ads
1. Use a programmatic model you are comfortable with
While the majority of advertisers are comfortable with the use of their DSPs, some would want better flexibility to validate ad buys and ensure that there is no fraud. For this reason, it is important that you consider your programmatic model before committing to it long term.
Some brands are opting to go in-house, particularly since this gives them full control. All aspects of the campaign—from ideation, execution, and to activation—are controlled by the company. However, this is far trickier than that. Programmatic advertising is complex, and unless you have an in-house team that actually knows what it’s doing, then you could be purchasing ad space that might not provide optimal returns.
For this reason, many brands are choosing a hybrid approach, where advertisers can see what their agencies are buying, and having an internal team (whether through the agency or in-house) validate these buys.
2. Pool all your data and come up with a sound programmatic strategy
Once you decide on a programmatic model, then you should consider your strategy. Do not isolate your creative arm from your agency; rather, bring the two parties together to come up with creative executions of your programmatic ads.
What this means is that you look at all your data—your analytics, CRM stats, and market research, as well as other data sources you may have—and try to see which media type, location, or device would best appeal to your audience. This way, your campaign is not a shot in the dark: you are actually running a data-driven programmatic ad campaign, so you are more likely to get better leads.
Go beyond retargeting, and see how you can get the right response by testing out varying accuracies and scales of your campaign. Scale it back if you think you’ve gone too far, or choose a different method if you think your ads are not hitting the mark.
To come up with a sound strategy,
have a sit down with your data, creative, and agency: talk about your
prospects and goals, and see how efficient your ads should be.
Read more: http://www.adotas.com/2019/07/maximize-programmatic-advertising-2019/
