Digital digest 2- Programmatic Advertising
- 1. Digital Digest 2: Programmatic Advertising • Name: Vasu Puri • Student ID: 122227192 • Email:vpuri3@myseneca.ca • Course: Digital Marketing • Section: Seneca@York(LEC SEE) • Professor: Christopher Briggs • Date:09th February 2022
- 2. What is programmatic advertising? • It is the process of purchasing digital media space for marketing without the intervention of a human. The process is done based on preferences, interpretations and algorithms. • It is broadly divided into three different types. o Real time bidding(RTB)- It is an auction based media advertising where a publisher purchase a space based on bidding. o Private marketplace(PMP)- It is similar to RTBs. However, only the publishers with special invites are able to participate in the bidding process. o Programmatic direct- The publishers display ads at a fixed rate and there are no auctions in this method.
- 3. The process behind programmatic advertising. • The shown steps indicates the standard process of programmatic advertising. However, for PMP and programmatic direct, the process will be slightly different based on the nature of purchasing. • The highest bidder is the one who is able to receive the auctioned ad space. • The biddings are pre- programmed based on the compatibility of the space with the goals and preferences. • This process saves time of manual labour involved in the manual buying of the advertisements, as well as, the cost of the same. • This form of advertising is only limited to the paid media and does not include personalization or email marketing. • The number of conversions are proportional to the reach of the media. Courtesy of Single Grain
- 4. Latest trends in programmatic advertising. • The brands are making programmatic advertising in- house. The worldwide figures show that 21% of the surveyed brands have moved to in-house programmatic buying. Doing this improves accuracy and helps the companies in reducing costs as it eliminates the dependency on agencies. • Programmatic advertising is becoming more interactive. The ads are now not only limited to images but have now moved to video advertising and game based interactive advertising for increased involvement of the viewer. • Chrome’s phasing out of third-party cookies in 2022. The brands were dependent on third party cookies to find relevant customers based on their interests. However, marketeers will now have to find other ways to target the audience. • Rising investments in programmatic advertising. Advertisers who spend more than 41% of their display budget on programmatic increased from 55% in 2019 to 70% in 2020. • New format such as Connected TV and Digital-out-of- home media have emerged in the recent years.
- 5. Brands using programmatic advertisement. In 1995, the first central ad server was established, allowing salespeople to sell advertisements across multiple websites. Programmatic advertisements maintains the equilibrium of demand and supply for the advertisements as it enables the brand to advertise on the specific channel based on their needs. In 2014, Google discovered the importance of programmatic advertisement when the reach their ad campaigns increased by 30% with reduced costs. The brand awareness was also enhanced by 50%. The earlier a brand adopt this technology, the better it is for that brand to improve their awareness among the desired audience.
- 6. The intercontinental hotel group(IHG) • IHG realised that users were using third-party-websites to do hotel bookings due to which customers were paying extra as compared to directly making the booking through the hotel. • In order to cater to this gap IHG launched a series of programmatic advertising based on the browsing history of the users showing them the price if they directly book from the hotel website. • By doing so, IHG was able to attract many users to book hotels directly from the hotel website instead of using the third party applications.
- 7. Kellogg's • In 2014, Kellogg's too realised the power of this form of advertisement. • The company decided to partner with doubleclick to boost the sales through offline channels by enhancing the viewability. • The campaign was a success and the company saw 70% increase in the viewability rates. • There was 2x to 3x better targeting of the audience as well.
- 8. Point of view In my point of view, the reason behind the growing popularity of programmatic advertising is due to the convenience and low cost involved in this method. The brands which have adopted this technology for marketing have seen significant differences in the sales and awareness, both in short term and long term. With rising internet users throughout the globe and increasing time spent by users on internet, brands need to enhance their viewership over the internet media. On the other hand, with increasing competition and demand, the advertising is becoming more and more expensive and hence brands must take advantage by entering in this form of marketing as earliest as possible.
- 9. Sources • NIDHI DAVE, “38 Digital Marketing Trends You Can’t Ignore in 2022”, Single Grain, https://www.singlegrain.com/digital-marketing/digital-marketing-trends-2022/ • “The Adjust Mobile Measurement Glossary”, Adjust, https://www.adjust.com/glossary/programmatic-media- buying/ • Dave Chaffey, “What is programmatic marketing?”, 22 Dec 2021, https://www.smartinsights.com/internet- advertising/internet-advertising-targeting/what-is-programmatic-marketing/ • “5 key programmatic advertising trends you need to know | 2021”, BannerFlow, https://www.bannerflow.com/blog/5-key-programmatic-advertising-trends-you-need-to-know-2021/ • “What is Programmatic Advertising? The Ultimate 2022 Guide”, 14th Jan 2022, Match2one, https://www.match2one.com/blog/what-is-programmatic- advertising/#:~:text=A%20brief%20history%20of%20display,featured%20a%20banner%20from%20AT%26T. • “9 Programmatic Advertising Examples Worth Your Attention”, WebFX, https://www.webfx.com/digital- advertising/learn/programmatic-advertising-examples/