Future of Digital marketing is constantly growing, with more media consumed through digital devices. So, it is quite right that the digital marketing ecosystem has come a long way since the foremost banner ad came out in 1994. But, perhaps, no area has witnessed more growth than Programmatic Advertising.
What is Programmatic Advertising?
Programmatic was introduced in the late 90s to help publishers find a simple way to sell their unsold inventory because demand was not. Before the invention of Programmatic, nearly 40% to 60% of publisher inventory would most of the time go unsold, as demand could not keep up with supply.
As this inventory would not have made any money for publishers, it was available at much lower rates than traditional direct purchases. And as demand for this remnant inventory increased, so did the total number of publishers who wanted it, and this competition meant costs remained low.
Since its invention, Programmatic Advertising has allowed brands to reach targeted customers in real-time. As a result, the ad buying experience is faster, cheaper, and more straightforward for companies that run online advertising campaigns.
Provided that Programmatic uses algorithms to position an ad better, it saves advertisers money and time and allows better campaign optimization.
The innovations around the field of Programmatic include mechanisms that focus on enhancing targeting and immediately notify the advertisers of the demands of their customers.
Programmatic advertising is growing beyond the online banner to include new digital marketing channels like wearables and interactive TV networks.
Let us see the benefits of Programmatic in depth, where it holds value for marketers and the future of Programmatic Advertising.
Benefits of Programmatic Advertising
If we look at the essential impediments that advertisers faced before the invention of Programmatic, it won’t be hard to acknowledge the profits of Programmatic Advertising.
The online ad market is undoubtedly very innovative yet has many inefficiencies. Programmatic Advertising handles these inefficiencies and makes it much simpler for digital marketers to do their tasks efficiently.
Advertisers do not need to call the publishers and negotiate charges, email orders to and forth, and wait for the signatures to be noticed.
Currently, an advertiser can start to engage in what is known as “Programmatic Direct” or “Programmatic Guaranteed,” where using their Demand Side Platform (DSP) and by clicking a few buttons, they can reserve the specific media space directly.
Surprisingly, this unique technology has shifted beyond standard display ads. Indeed, Programmatic Advertising is now embracing video and mobile ad formats and innovative media channels. Let us find out below.
Programmatic Advertising hits TV networks. However, one of the interesting things about the future of Programmatic Advertising is “Addressable Television.”
For instance, Dish Network in the US checked systems on a trial basis in which the customer’s set-top box could be examined or questioned. Accordingly, they are being conducted offline but moving towards online and even real-time.
When the ad comes in between a television program, data from a user’s set-top-box can be sent to the ad exchange to help purchasers make an informed decision in real time, depending on the analysis of this user’s behavior.
Depending on this, they can narrowcast rich media video content immediately to a specific set-top box. It was not available to marketers before, but with the invention of Programmatic Advertising, the set-top box of customers could be reached immediately with directed content.
It has an apparent effect on the efficiency of the campaign.
It is one of the most exciting developments in programmatic. Sky TV in the UK started to do this in a restricted format, and this will be growing. Programmatic Advertising has helped marketers perform efficiently throughout various online media channels.
The Future of Programmatic Advertising
One of the significant developments for Programmatic will be improvements dedicated to wearables. Soon it will happen that you are walking down the street and you cross a shop. The moment you cross the shop, they will send you a personalized ad if you carry their loyalty card, for instance.
Programmatic Advertising will make it feasible for such retailers to target these loyal consumers directly, keeping their approval pending and the respect of privacy rules, and persuade them to the store more often or at a specific period. However, there are some instances that this advertisement will lead to fraudulent cases. Good thing, Anura can help you with this by maximizing their programmatic ad solution program.
In conclusion, technology has enabled marketers to enhance their targeting skills dramatically. As a result, it is probably clear that Programmatic Advertising is unavoidable to be ahead of the competition.
Programmatic Advertising Plays a Significant Role in Future of Digital Marketing Strategy
Programmatic Advertising is going to grow in the coming years. The idea provides a far more efficient and effective way of purchasing and selling online ad space. The limiting factors for Programmatic Advertising are the technologies themselves. However, these are only going to enhance as time flies- as mentioned above, you must look at what the Programmatic ecosystem looked like ten years ago to understand how refined, and influential the world of Programmatic is.
