Programmatic media gets inside people’s heads and learns what makes them click.
Programmatic media relies on software to purchase digital advertising, as opposed to the traditional process of human negotiations, insertion orders and tear sheets. It’s using machines to do what humans have done for decades. But why?
Why use programmatic advertising?
Efficiency. Theoretically, the programmatic machine can process data faster in a nanosecond that will distribute the right ads to the right people at the right time for less money. This is called efficiency.
Is programmatic media more efficient?
It can be, but there are a lot of variables to be considered when buying programmatic media. Like any computerized functionality, the old adage “garbage in / garbage out” describes the challenge facing programmatic media today.
Is it worth the investment?
If the cost investment is low, the answer is yes. The days of large budgets and mega commitments are long gone now and many suppliers, including Google, enable marketers to explore programmatic media with relatively low investment. Our goal is to generate new customers for our clients. With programmatic, we simply test it against our benchmarks. If it proves to be cost-effective, we increase it. If it is not, we tweak it and continue until it either proves itself worthy or drop it.
Programmatic advertising technology promises to make the ad buying system more efficient, and therefore cheaper, by removing humans from the process wherever possible. Humans get sick, need to sleep and may come to work hungover. Machines do not.
Are machines replacing people?
Yes and no. Technology is being used to replace some of the more menial tasks, but using it can require more time planning for sophisticated, customized campaigns instead.
What is real-time bidding vs. programmatic direct?
RTB refers to the purchase of ads through real-time auctions. Programmatic software also allows advertisers to buy guaranteed ad impressions in advance from specific publisher sites. This method of buying is often referred to as “programmatic direct.”
What is the future of programmatic media buying?
Programmatic media is definitely on the rise. At the moment, it’s mainly online ads that are traded programmatically, but increasingly, media companies and agencies are exploring ways to sell “traditional” media this way, including TV spots and out-of-home ads.