How Programmatic Is Changing How Ads Are Sold

How Programmatic Is Changing How Ads Are Sold

By: Cortland J. Fondon

Programmatic isn’t just providing new advertising options and opportunities — it’s actually changing the face of advertising itself. Here are a few of the ways the programmatic paradigm is influencing how ads are sold.

A New Breed of Seller

Programmatic gives sellers the ability to see their role beyond simple selling, thanks to the ability to get their hands on tons of granular consumer data, the proliferation of tools for interpreting that data, and the digital environment in which the entire process lives. To take full advantage of this finely-tuned, ultra-competitive environment, sellers must assume a more active and global role as a brand evangelist, customer educator, and audience targeter.

Evolution in TV Media Buying

Programmatic’s infiltration of the TV advertising arena could grow threefold or more by 2015 as marketers and brands get their hands on a greater body of big data. This will cause an enormous shift from ratings-driven advertising to niche-driven advertising. Media buyers will no longer have to content themselves with buying ad time on shows known to be popular with a particular broad demographic such as males 18 to 35. Instead, they can take a highly granular approach based on specific details of their target audience and advertise directly to that crowd instead of hitching their star to a particular show or time slot.

Real Time Hits the Big Time

Real-time bidding has quite obviously arrived, and its adoption by some of the biggest players in the marketing game is establishing a “new normal” for the industry. For example, IPG recently declared their intentions to go programmatic with no less than half of all of its future media buying. Forecasts for 2016 include real-time bidding expenditures of $8.9 billion in the U.S. alone, accounting for up to 27 percent of the nation’s display ad expenditures. Ad networks already account for 81 percent of video sales to advertisers. As an increasing number of advertising and media giants make real-time bidding central to their audience enticement strategies, the world of demand side platforms and trading desks will come to seem quaintly old-fashioned and unresponsive.

Going Mobile

Mobile display advertising via real-time bidding has grown into the most dynamic new form of advertising on the planet. Today’s online consumers have untethered themselves from their computers to an astounding degree, relying increasingly on their mobile devices for all their browsing and purchasing needs. Facebook and Twitter have figured this out and are expected to spend up to $14.5 billion on mobile RTB by 2017. Cross-device mapping (in which a single user sign-on permits data sharing across a wide range of platforms) will allow these and other social media channels to overcome the cookie-less mobile device environment, giving marketers and sellers a holistic “portrait” of their ideal customers. As mobile advertising continues to be refined and improved, you can expect to see ever finer RTB optimization.

 

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