Vlog Episode 7: Programmatic Advertising Explained
B2B vs. B2C Programmatic stats: Recent IAB shows b-to-b programmatic study that revealed nearly half of b-to-b marketers don’t even know what programmatic buying is. That’s a staggering gap compared to b-to-c marketers, among which 62% of marketers use programmatic.
-What is Programmatic marketing:
Programmatic advertising is an efficient way for marketers to bid on mobile and desktop ad inventory in real-time. The goal here is to show one specific ad to a consumer based on specific targeting specifications.
Let’s break this down into 3 parts:
1) What is bidding ad inventory?
Through ad exchanges like: DoubleClick, AppNexus, OpenX etc., as an advertiser, you get access to millions of publishers who have ad inventory available on their website at any given time. Instead of directly purchasing ad inventory on a specific site – Imagine you are Old spice (men’s deodorant) and you want your Ad to appear on men’s health, wellness, and hobby sites, now the benefit of accessing millions of publishers over buying directly through GQ.com is that you don’t have to pre-negotiate a price / sign up for a minimum number of impressions/ or budget or even place an insertion order. You are able to programmatically purchase ad inventory on-demand on an as is needed basis to achieve a campaign objective.
2) What does bidding in real-time mean?
The real-time aspect of programmatic ads that you no longer have to purchase ad inventory in advance, instead you BID for it through an ad-exchange whenever your targeting requirements meet the inventory that is availableThis is essentially and auction that takes place in a matter of milliseconds where you are bidding alongside many other bidders. If you have the highest bid, your ad will be placed in within the ad space you bid on.
3) How do you as an advertiser know when to bid on an ad?
One of the more revolutionary parts of programmatic ad buying is that you can bid for your ad to be placed in front of an individual based on countless types of ways you identify them as your target buyer.
- It can be: the keywords of an article they’re currently reading on the page where you’re bidding for ad placement
- their online/ offline purchasing history
- based on their previous search history
- based on a certain lifestyle they might identify with
- If you’re interested in learning more about targeting capabilities, be sure to check out our DMP partners like: MasterCard, BlueKai and Exelate.
Why should I care to learn about programmatic advertising?
According to a recent MAGNA report programmatic ad spend reached $14.2 Billion in 2015 and over the next 4 years MAGNA predicts year over year annual growth of programmatic ads by 31%. According to a recent case study Lego was not only able to achieve a $5 Cost per Acquisition through programmatic marketing but more than 80% of all converting consumers saw a LEGO ad three times or less before converting. Big brands have already learned that they are getting a highly efficient return on their Ad spend and now so should you!
Thanks for joining! Let me know if you have any questions