Programmatic Digital Marketing
With greater efficiency has come a rise in scale and reach. Traditional media planners would look at 10 to 20 ad purchasing chances each week, whereas automated internet ad buyers look at millions of ad buying opportunities per second.
"Every day, 100 billion impressions are accessible on the world's digital ad markets."
More than 100 factors, such as certain publisher sites, pages on the site, ad unit size, device types, and so on, are used to qualify each of these impressions. Furthermore, each variable can have up to 100 distinct values added to it, such as time of day, day of the week, device location, local weather, and so on.
While you add up the daily number of grouping that ad exchange bidders could evaluate when deciding whether or not to buy certain impressions and calculating what to pay for each of them, you get a whopping 1 with 15 zeroes. That's a million billion possibilities in a quadrillion. Such confusion could only be solved by a machine. That's despite the fact that just 20% of internet advertising is already programmatic.
What is Programmatic Digital Marketing ?
In simple way, programmatic ad purchasing is the use of software to purchase digital advertising. Rather than using traditional methods such as requests for proposals, tenders, quotes, and human negotiation, programmatic buying purchases display space using robots and algorithms. It is not, however, a complete automation of the ad purchasing process. Traditionally, you would have created insertion orders or ad tags by hand, which can be tedious but time-consuming. Humans have more time to optimize and improve ads when they use programmatic ads.
Well humans will always be required to design and optimize advertising in order to address consumers' deep human needs, yet programmatic advertising will result in fewer ad purchasers. |
| Fig. Programmatic Digital Marketing flow* |
Programmatic-centric software, on the other hand, will enable people in charge of advertising to better plan, optimize, and target their campaigns. However, while programmatic advertising is an effective tool, it is still in its early stages and far from flawless. In reality, major sponsors withdrew their advertising from YouTube in 2017 due to fears that the video platform couldn't ensure that adverts wouldn't appear alongside extremist content. Verizon, for example, was included in extremist clerics' videos, prompting the company to quickly take its ad initiatives—and spend—from Google and YouTube.
Is Programmatic Digital Marketing successful? And why?
Yes, it is, to put it straight. Because it is cost-effective. In 2015, 62 percent of marketers were using programmatic advertisements to fulfill fundamental brand objectives, with an average budget increase of 37 percent expected over the next two years. And, by the end of 2019, a significant 65 percent of digital media will be programmatic, with a predicted market expenditure of $45.94 billion – a testimony to the medium's rapid expansion:
According to Lauren Fisher, lead analyst at eMarketer, this rise is primarily due to private exchanges giving purchasers greater choice over their spending.
"Buyers and sellers have more control over their automatic purchases with private setups."
They may have started out as a way to attract hesitant buyers and sellers, but today private settings are driving a lot of the change and energy in the market, as both buyers and sellers seek more control over their programmatic efforts. Because it is an efficient use of both time and resources, the system works and is used.
As CEO and creator of SEO firm Ignite Visibility, John Lincoln, said on Inc: "The goal of programmatic marketing is to eliminate the old-fashioned, hit-or-miss campaign design.
That method has a reputation for wasting a lot of money for marketers."
You may now rely on an algorithm to determine how best to spend your advertising dollars. All you have to do now is give your programmable solution some campaign data as well as key performance metrics, and you're ready to go.
“Not only will the system launch your campaign, but it will also track your ad budget to identify opportunities for improvement.”
Tim Webster, one of The Exchange Lab's co-founders, agrees. He wrote on AdExchanger, saying: “The efficiency of programmatic marketing or advertising is undeniable. We can now better understand the media journey and have one-on-one discussions with individuals because to programmatic.” It's apparent that programmatic advertising has great promise for modern companies trying to succeed in the digital era in terms of ad spend optimization, ROI, and the ability to engage with your target audience.
How does beverage company do Programmatic Marketing?
Generally the beverage companies follow these 5 principles for their programmatic digital marketing:
1. Know the marketplace:
The first step is straightforward: come to terms with what you're doing. As someone who is entering into a new field of advertising, you will be confronted with a slew of new concepts and terminology; take the time to familiarize yourself with them.
Unruly provides a complete collection of programmatic ad terms that will help you distinguish between your SSP and your DSP at any point in your journey.
2. Set Goals:
It's critical to have your goals defined from the start when it comes to digital marketing. To do so, you need analyze your current data to identify the sort of advertising awareness you require and devise a strategy that is appropriate. This will enable you to set short- and long-term objectives.
If you're not sure why you're doing it, don't leap into programmatic advertising.
3. Human Touch:
The fact that programmatic advertising is based on algorithms and robots does not negate the necessity for human involvement. There are several platforms available, some of which provide completely or partially managed services. Others merely give technological tools that allow you to manage your own programmatic buying.
Following that, you'll need to assign experienced personnel to plan, control, and optimize your purchasing. The key is that, in order to achieve maximum success, you must discover the ideal balance of technology automation and intelligent human interaction; thus, don't rely only on the algorithm to deliver the greatest results for your campaign.
4. Protect the Brand:
One of programmatic drawbacks, as previously mentioned, is that its dependence on algorithms might result in advertising appearing in inconvenient places.
To avoid this, make sure your demand-side blacklist is always up to current and being checked for inappropriate sites. Some platforms enable you to exclude whole categories from ad spending, which may be quite useful.
Another approach is to utilize a whitelist, which is crucial if your product is sensitive. This will provide a list of sites that have been allowed (rather than rejected). It will limit your ability to reach your target demographic and perhaps increase the cost of your ad, but it will assure that no unpleasant content is connected with it. If you're working with an agency, be sure they're doing everything they can to keep your advertising off of low-quality and sensitive sites.
5. Watch for fraud:
Programmatic advertisements are typically viewed between 44 and 55 percent of the time, but Meditative believes that bot fraud will cost digital marketers $6.5 billion each year.
Programmatic advertising, on the other hand, have a fraud rate of 16 percent, which is lower than other types of display ads. Even if the risk of fraud is smaller in programmatic advertising, you should keep an eye on it across all of your campaigns and projects.
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Author - Mohit Jain
MSc. Digital Marketing, Dublin Business School
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Focus Keywords: #ProgrammaticDigital Marketing #BeverageIndustry #DigitalAgency #SocialMediaReserach #webdevelopers #Ecommerce #Agencyforbeverageindustry #ResearchSocialMedia #SocialMediaCommnity #DrinksCommunity
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There is so much in digital marketing that I was not aware of. This article has provided me lot of information on programmatic marketing and how it changes the whole landscape of marketing in the new world.
ReplyDeleteVery well presented!
ReplyDeleteThat's so amazing to see the way use of Programmatic Digital Marketing is increasing and I agree with your point definitely PDM is very cost efficient and at the same time result oriented.
The 5 principles you wrote about is very true as we also follow some of them.
Overall its worth reading. I appreciate your work Mohit, well done.
Well Explained..!
ReplyDeleteYes programmatic advertising is a way to automatically buy and optimise digital campaigns, rather than buying directly from publishers or website.
It’s designed to replace human negotiations with machine learning and AI-optimisation. The goal is to increase efficiency and transparency for both the advertiser and the publisher.
This is done through real-time auctions where ads are bought at the same as a visitor loads a website and as you have said that "Buyers and sellers have more control over their automatic purchases with private setups." this will be the actual scenario when we start implementing in our system.
Very well explained, we have seen in the more than 15 years since its inception, programmatic marketing has truly delivered on its original promise of being the future of web advertising. But what exactly is programmatic marketing nowadays? Programmatic marketing, which is now an essential component of most omnichannel marketing plans, is a word used to describe the intricate use of data and machine learning to enable hyper-segmentation based on your consumers' behaviour. The fascinating aspect of programmatic marketing is that as technology advances, marketers are exposed to an increasing number of options to locate and engage their core customers.
ReplyDeleteGreat explanation, Mohit! Programmatic advertising is a new era for digital marketing, and it has been changed the way brands talk to customers.
ReplyDeleteA short time ago, all the adverting negotiation was made by a human, in other words, going on a one-by-one website to buy some space there. To make this process more efficient and successful, Programmatic advertising was created to optimize the process of buying advertising on the internet. Using it can save some time thinking more about strategy than doing something that machine learning can do.
Another advantage is delivering a personalized message to users as long as the ads are customized according to the channel and users that have been received the message.
Very clearly described. The wonderful thing about programmatic marketing is that as technology advances, marketers will have additional chances to locate and engage their target customers. So, to stay on top of the latest trends and innovations, programmatic marketers will need to stay on their toes.
ReplyDeleteProgrammatic marketing is here to stay in today's digital environment. In reality, global programmatic ad spending has nearly doubled in the last four years, and is expected to reach $155 in 2021. Although programmatic advertising has been slowly developing for over 15 years, many people credit its current quick growth to post-pandemic marketing methods.
Nicely written and well explained!
ReplyDeleteYou've provided quite good information here. This is fantastic since it expands our knowledge and is also beneficial to us. Thank you for sharing this piece of writing.
ReplyDeleteDigital Programmatic Advertising