Things You Need to Know about Programmatic Buying
Today, programmatic buying plays a crucial role in digital advertising and allows online marketers to automize media planning, and makes ad space purchasing more efficient. Let us dive deeper into some insights that change the landscape of programmatic media buying. With many wondering what’s going be the next big thing, we will crunch some numbers to justify the rise of programmatic media purchasing all around the globe.
Trends in numbers around the world
With the trend curve going up, a close-up look at prevailing spending patterns predicts a significant rise of programmatic marketing in developed markets.
In 2017, the spending on programmatic ads will grow by 24% reaching almost 27.5 billion dollars among US-based companies. While the United States media buying accounts for a half of world’s industry, some of the advanced European economies, closest to its business culture and traditions of digital ad landscape, significantly contribute to the flourishing popularity of algorithm-driven ad purchasing.
Among EU countries, the ones with the largest expected annual growth of market segment in 2016-2017 are the UK, France, and the Netherlands with ads traded programmatically, increasing in 2017 by more than 50% each. Going East, APAC’s giant - China is likely to add up half of what it spends in 2016 to its programmatic buying capacity in FY2017:
What will impact the digital industry in the short run?
Further, we will explore some factors contributing to the industry growth in upcoming future. Let us disclose the guiding principles that will add up to the new look of programmatic marketing.
Since ad supply chain is becoming more complex, to keep afloat some of the market players are likely to shift to direct interaction with tech providers cutting the ties with intermediaries. A growing demand to have more control over data makes brands think of internal units dealing with programmatic marketing. To what extent it will be done depends on a particular business need of a client: to collaborate with just one single demand-side platform or to assemble a standalone team that will be in charge of in-house programmatic media buying – these are the options.
Since transparency of inventory sources is marketers’ concern, an open real-time auction can be substituted by programmatic premium and deals at the private marketplace. Although programmatic marketing is at the peak of its popularity and keeps on progressing each year, many are not ready to lay their hopes on inventory quality coming to them automatically based on deep machine learning. Blindly trusting robots to perform heavy work and choose a place to put an ad is something not everybody is ready to go for, as study shows.
Shift to Programmable
Artificial intelligence is already centric in media trading. However, it appears it’s not enough. With customers and their buying habits becoming essential for media planning, potential buyers get even more specific about what impressions they are likely to react to. A highly flexible algorithmic environment that will use a powerful API to adjust the ads depending on buyers’ mood swings is the future. Tech companies will offer their own algorithms to those interested in effective media buying to cover those pre-bid micro-moments analyzing the influential factors at a particular moment before the ad is served.
With potential buyers using their phones several times a day for various reasons, programmatic ad serving will bring almost 40% more in revenues to ad tech companies in the US during the upcoming 2017. Viewing ads from smartphones is to skyrocket mobile ad costs, contributing to overall programmatic expansion. Thus, it is not an innovation but a trend to watch and catch up on according to BI Intelligence. Additionally, galloping mobile ad advertising is growing more rapidly than any other ad platform; mobile internet of spending worldwide is to bulk up by 30 billion US dollars on average each year starting from 2017 till 2019.
These are just a few hand-picked ideas atop the driving forces of programmatic advertising offering better targeting options and increased returns utilizing the power of AI. If you still have any questions after having read this article please feel free to ask them at firstname.lastname@example.org!
IRINA KOVALENKO, CMO OF SMARTYADS