Programmatic buying of media is set to explode within the next few years. According to Zenith’s Programmatic Marketing Forecasts, it is estimated to grow nearly tenfold in three years for this simple reason: it saves everyone money, time and allows you to target your audience much more effectively than was previously possible. Another major advantage would also be the ability to fully track, see the results and progress of your campaign whilst being able to fully optimize and maximize your results.
Back in the old days, it was the endless lunches and the phone calls that were the trademarks of how marketing deals were settled. Nowadays, advertisers from big to small are all looking to automate this whole process to save a significant amount of time and money for their businesses. Who wouldn’t want to free up their time and make use of a system that is better at targeting their intended audience and saves money at the same time?
Some buyers are still going for the old way of working directly with the publishers to ensure correct placement and to get things exactly how they want it to be. This has its benefits, but it is undoubtedly more expensive and more time consuming as you would have to sit with your agency to discuss every single minute detail before publishing your ad.
Spending time to discuss all the small details on ad placement costs money. Targeting a broad audience range that is beyond your intended target audience also costs more money than you need to spend.
So you may be asking: which one is right for me or my business? Do I need to choose between the two or can I strike a balance between both?
The answer may not be that simple. Most major companies now use a blend of RTB (Real Time Bidding) and direct sales tailored specifically for each of the campaigns they run. Some campaigns may be more suitable to be done programmatically whilst others would benefit from the fine tuning that the direct approach provides. Some larger companies even do both as certain approaches may work better with some of the products or services they sell.
Adomic, a company which provides analytics products to the online display advertising industry, contends that 23% of the advertising run online by the top 1,000 advertisers is using RTB. This number is growing exponentially every year. BMW has for instance, over 30% of its ad units running over RTB.
It makes perfect sense. Programmatic buying offers extensive targeting tools, as well as a more efficient process for placing ads at a large scale. If your target audience is wealthy suburban moms, it’s likely you’ll be able to reach them with programmatic buying at a significantly lower cost than purchasing slots directly from publishers.
Programmatic also includes retargeting of adverts which, as the name suggests, targets a user to be shown an advert more than once. This method of targeting can also be used to show people who have already seen the initial advert, the second stage/phase and onward of the campaign that is being run. This is an incredible tool as you can slowly bait in customers who may not have changed their mind after just the initial advert. This is called a customer journey as it you slowly take in and lead a targeted audience member from being clueless on the product to becoming fully versed and ready to indulge in the product or service that you are trying to sell.
Now of course, RTB is not suited for everyone. For instance, the Disney Corporation is an example that is often used to show a company which cares, above all, about its image and ad placement perhaps more than anyone else. They instead use something known as programmatic premium, this type of media buying combines many of the advantages of RTB (efficiency, analytic insights, cost effectiveness etc.) with the absolute comfort of knowing exactly how and where your ads will run. A middle ground that saves time for the most conscious.
It’s clear programmatic buying is the way forward for most cases. If you have the money and the drive to move your business forward, why not give it a shot?
If you’re interested in the benefits that programmatic buying can bring to your company (which, of course, you will be if you’ve made it this far down the article) then feel free to contact us at GreenWhite Marketing for a consultation session to see how we can bring your firm into the 21st century.