Though I provided a basic outline of programmatic buying in a previous blog post, I recently stumbled across a few interesting infographics compiled by Altitude Digital explaining more about the programmatic marketing process and providing some key insights. The graphs are useful in helping to fully understand the programmatic buying concept. This is part one in a two-part series looking at these informative images.
This 2013 infographic from DataXu gives some insight into issues marketers are having that might be leading to the acceptance of programmatic. I've provided some summarizing commentary on the right.
It is no surprise that consumers are actively using technology to help them shop. Consumers are using digital technology even when shopping in-store and are using technology to interact with brands online.
Marketers are setting aside dollars for real-time bidding. Remember, real-time bidding is not the same as programmatic buying. Real-time bidding is selling online ad impressions through an "auction" that happens in the amount of time it takes a webpage to load. Programmatic can use real-time bidding, but not all RTB is programmatic. Get it? Got it? Good.
However, setting aside dollars toward this technology means nothing without data to help drive it. "Data" may be a buzzword in advertising, yet it's extremely important, and this graph shows that many marketers are struggling to know how to properly use it.
Many organizations have tons of data, yet much of it is not analyzed or formed into effective plans. Additionally, they struggle to show proof of plans that are effective.
Using consumer insights to build plans, and taking ownership as a company of this intelligence, is essential—not only for the company, but for customers. Relevance is always important.
Programmatic is perhaps being accepted as a way of buying online ads because its allows automation and ease for marketers in the right areas where they need it. Programmatic can utilize consumer data efficiently, finding the correct, relevant viewers for an ad and not potentially wasting ad dollars. It can show ROIs and metrics, and makes the user experience for consumers more comfortable and pertinent. In an article in Forbes, Ben Arnold, Associate Director of Digital Strategy at Kellogg, summarized programmatic in such a way, saying that, "the most interesting aspect of this (programmatic) ecosystem is a DSP (demand-side-platform)'s ability to ingest a client’s digital media plan—brand, budget, success metrics, etc.—while layering on other data sources and decisioning algorithms to find the impressions that deliver the right consumer when they are most receptive to the message." In other words, some of the things marketers are struggling with, including metrics showing ROIs, budgets, and consumer data, are all executed through a more efficient process in programmatic.
Are there any other reasons why marketers are picking up on programmatic so quickly? Share your thoughts below!
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