Understanding Programmatic Advertising
By Renata da Silva Ferreira. Published July 17, 2020
What is Programmatic and why do we need to talk about it? When discussing Programmatic, is not about “technology”, but instead about “methodology”.
The “traditional” methods of buying and selling media and inventory are already known. Programmatic is a methodology that connects traditional direct deals and real-time bidding technology in an automated way, allowing for better targeting and larger optimization control over media spend and audience data.
Companies are adopting Programmatic to improve workflow, gain efficiency, save time, money and reduce human error. Its centralized trading system makes it all possible. In 2017, spending in programmatic hit $25 billion and is estimated to surpass $43 billion by 2020. These prospects reveal a decay in traditional methods which are projected to contract from 51% in 2017 to 37% in 2020 (BCG.com).
Am I staying behind? What actual benefits does Programmatic bring to the table?
Traditional platforms are not obsolete. They provide forecasting and spending allocation insights, they also reduce concerns on brand safety and allow creative review. Programmatic methodology, however, offers all these same benefits with increased effectiveness.
A better tracking across metrics allows for enhanced management optimization, including spendings, target audience and insights.
Why does implementation seem risky?
The first obstacle with Programmatic might be getting the systems up and running. About six months to complete setup, hire and train a team can seem like a financially challenging step to pursue in-house. Nevertheless, working with experts and trained staff guarantees high valued benefits. By comparison, on agency fees alone, one can expect a cost reduction between 15 to 30%. Do these numbers seem hard to believe? They may seem that way, but they become a reality when working with a trading system based on transparency.
Long-term benefits:
Programmatic is the master key for independent campaign management, without a third party delaying your access to information. All data is accessed with ease and allows you to have a better understanding of its roots. This level of independence enables a better campaign assessment, (both before it airs and while it is online). Every setup change and update is easily streamlined so the campaign can be rapidly updated and resumed. Having your own data generating program means that all data is internal, secure and within reach. In the long term, this data can reveal unique and intricate insights, which are already adapted to the company’s reality and behaviours, therefore generating greater value.
Future Thinking: Plan to stay ahead
Taking advantage of Programmatic is the ideal step forward. Current and future trends are revealing the increased importance of understanding and reacting to the emotional, behavioural and decision-making factors of consumers' lives.
In-house programmatic can be a hassle for most companies to implement both financially and logistically. The next best solution is to invite a third party that can work from the inside, which works ethic and actions are based on full transparency.
Brands can now benefit from Programmatic by outsourcing these services to a Trading Desk. This way companies will have a specialized workforce managing their campaigns without losing depth on what is going on in real-time. It is crucial to saving time and money while engaging with advertising, it is also crucial to be relevant and deliver impactful ads in their correct spaces. Working with a Trading Desk, therefore, is especially rewarding due to purchase control, ethics and transparency in accessing data quickly.
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