Defining programmatic marketing and its 5 main benefits

Programmatic simply means automated, so programmatic marketing refers to using technology to automate the process of buying and selling online advertisements. The purchase of digital media takes place via automatic and direct inventory access. Automation allows to limit the contact with the sales department or advertising network, eliminate middlemen from the ad buying process and save a lot of time and money. Additionally, thanks to automation and cutting out complex ad-operation tasks, the transactions become more efficient. Thus programmatic means lower costs and higher efficiency.

 

Buying methods       

One way of buying ads programmatically is real-time-bidding (RTB), which refers to buying ads through computer-run auctions. Other programmatic buying methods are as follows: paid search, PLA or retargeting campaigns.

 

Here’s a list of 5 main benefits of programmatic marketing:

 

1. Specific ad to one single consumer in one single context

 

The most revolutionary aspect of programmatic buying is that it allows an advertiser to serve one specific ad to one single consumer in one single context. Marketers can precisely determine which consumer gets to see which ad and when. It gives a huge advantage over traditional segment-based buying, where advertisers can only offer one generic ad to a large and diverse segment of consumers.

 

Klogg Company, the producer of some of the world’s most trusted food brands, embraced programmatic buying, specifically Google’s DoubleClick Bid Manager, to stay at the forefront of changing consumer behaviour. Klogg Company wanted to gain with programmatic buying a holistic view of the consumer, deliver the right message to the right person and ensure that its digital marketing efforts deliver maximum effectiveness. The result of this was that it has increased viewability rates to over 70% and improved targeting by 2-3X.

 

2. Paying for the consumers you want

 

With inventories which are more and more qualitative and by reaching only the consumers you are looking for, you avoid paying for the wrong kind of audience which may visit a certain content property.

 

A UK based Financial Services Company was using a bid management system to manage complex campaigns. Rising costs per click and shrinking margins motivated the company to re-think its measurement model. It started to use programmatic connector to combine data-driven attribution with Marine’s (bid management system) real-time optimization. It allows to eliminate the double- and triple-counting effects of a single channel view.

 

With this new investment, the company was able to increase click through rates and decrease costs per click. In one search campaign, the company saw CTRs increase by 12% while CPC dropped by 7%.

 

3. Data driven prospects

 

Programmatic buying uses many data points and algorithms to find the right audience and serve highly targeted digital ads or content. Programmatic systems can evaluate millions of real time data features, including clickstream, demographic, psychographic or behavioural data, and decide, if a given consumer is likely to be a prospect. Thus advertisers can run their campaigns as per their targeted audience.

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KLM Royal Dutch Airline, which is at the forefront of the European airline industry, uses a platform for programmatic buying to, among others, organise its first-party and third-party data to empower a differentiated approach to digital advertising. Overall with programmatic buying, KLM has improved the efficiency of their media spend and ROI.

 

The unified platform also helped Kia, one of the world’s largest vehicle manufacturers, eliminate multiple silos of data and develop a holistic view of the consumer. As a result, Kia achieved a 30% improvement in cost per action (CPA).

 

4. Reaching lots of digital properties across screens

 

Thanks to connection with many inventory sources, programmatic buying can reach a large number of websites and digital properties, and match them with the proper client profile. Additionally, with programmatic buying brands can engage with audiences across screens and across channels, so a retailer can for example reach the customers both on their PC’s and smartphones. All in all, advertisers can connect with audiences faster and smarter on any device and on any channel in milliseconds.

 

Nike, an American multinational corporation dealing with the design and manufacturing of sports footwear and apparel, is constantly looking for possibilities to increase engagement of sports fans. During the World Cup, within seconds of a memorable match, Nike delivered 3D display ads across sites and apps in 15 countries. Through a specially designed, real-time delivery tool, ads appeared across the desktop and mobile sites and apps in the Google Display Network within seconds of an event happening on TV. Fans were then able to interact with these moments and share them on social networks. Real-time buying made it possible for Nike to deliver an amazing, mobile-rich media experience with over 2 million engagements.

 

5. Measuring campaign effects

 

Programmatic buying allows for measuring campaign results in real time, which makes it easy to set clear and measurable campaign goals. Optimization algorithms process data and make adjustments when the campaign is live. It allows to make the campaign more efficient and also helps to reduce campaign costs.

 

Brazilian airline Gol Linhas Aéreas wanted to increase its ticket sales. They needed a better understanding of how their online ads were reaching and influencing potential fliers across every channel (search, display, mobile and video). With the DoubleClick Digital Marketing platform, they were able to, for example, measure the overall impact of their digital marketing. The company was satisfied that it could precisely understand which channel had reached its limit and when it should change budgets to achieve better performance. As a result, Gol doubled its return on ad spend.

 

Conclusion

 

Consumers desire message which is personalized and adjusted to their needs. Programmatic buying ensures this and also is the most cost efficient way to deliver personalized content to target audience. With more qualified leads and conversion at lower cost than in traditional purchase, advertisers can expect a better ROI. Predictions for the future are that retailers will spend $3.71 billion on programmatic digital display ads in 2015.

 

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About the author

Monika Filipek

Content Marketing Specialist at Quarticon responsible for a company’s blog and managing social media profiles.


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