Programmatic Marketing Is as Some Will Say

Programmatic marketing is as some will say the next best way to advertise. In digital marketing, new techniques are being developed to effectively and efficiently target a broader audience through online and the web. The amount of smartphone and tablet users are growing by the day which means companies and organizations need a more cost-effective and faster way to advertise to them. Any types of events can trigger programmatic marketing. Accordingly, it can also be deployed through the use of a set of rules applied by algorithms and software.

Human skills are not needed to deploy the marketing aspect of this innovative technique, however human skills are still necessary for software and algorithm development as well as programmatic campaigns since the rules necessary to start the automated process require pre-planning beforehand and proven by marketers. This means that although human labor will be to some extent lessened, it still requires some human involvement to get started.

The most common forms of programmatic marketing on digital channels are: programmatic site retargeting, (A more progressive version of Site Retargeting permitting brands to display presentation ads to their most valued site visitors to perhaps convince them to change their minds) shopping cart abandonment email campaigns, product recommendation, and dynamic creative optimization (makes it possible for marketers to post an appropriate message visible the targeted consumer). Additionally Digiday was the first to use the term "programmatic marketing".

In an article by Olenski, one of his interviewees explains what programmatic marketing/advertising is. "Programmatic Advertising is the automation of the buying and selling of desktop display, video, FBX, and mobile ads using real-time-bidding. Programmatic describes how online campaigns are booked, flighted, analyzed, and optimized via demand-side software (DSP) interfaces and algorithms." (Olenski) Olenski's interview details how programmatic marketing/advertising can help a real world business.

He continues with stating the massive main stream of publishers and enterprise marketers have commenced engagement in some type of programmatic marketing because it has become a relatively easy and effective way to market to the public. People want convenience. They want something that they can do at home and not have to go through too much effort. Why not place advertisements in these key areas like within e-commerce sites like EBay and Amazon.

"Among advertiser panelists, for example, 85 percent said they're actively buying some media through automated "real-time" auctions (while 72 percent of publishers said they support the same process)." (Olenski) The predictions for programmatic's sustained development are solid. Over 90 percent of advertisers and over 80 percent of publishers have time and time again states they will follow such methodologies to managing media within in the near future. Olenski's interviewee additionally states Bob Arnold, an Associate Director of Digital Strategy at Kellogg, shared his experience with media buying and programmatic.

Arnold states he saw amazing results through programmatic buying because of the ease of use and fast implementation. Moreover he states, dependent on the brand, companies saw an increase of six hundred percent. The success means advertising plans on making "now moments" the vehicle for marketing and advertising. Things like hashtags used in Facebook and Twitter promote things quickly and easily. "We launched our innovative hashtag targeting technology back in Q4 of last year with great success.

We found that people are already engaging in online brand conversations on social channels like Twitter, but to date, no one had found a way to monetize this form of social interaction" (Olenski) Using monetization with google ads on YouTube as well leads to higher rates of promotion and advertising and leads to efficiency in cost regulation as advertisers pay based on clicks not just streaming.

"We are the first-to-market for this targeting technology to allow brands to purchase hashtags like keywords are purchased in search advertising, and then serve ads to the people who are explicitly using these terms." (Olenski) Programmatic buying just like programmatic marketing utilizes technology to systematize the consumption of media making it highly efficient and effective. Programmatic marketing just like programmatic buying can reach those heavy online users who need constant streaming advertisements to buy something or see something of interest.

An article by De Lombarede suggests programmatic marketing will continue to expand and reach other countries much like e-commerce did and has today. "Programmatic marketing will continue to gain momentum this year and is on track to become the main engine in digital trading...ad spend has grown 15.2% in the UK in 2013 on a like-for-like basis and the industry is measured at Pound6.3bn." (De Lombaerde) In today's programmatic marketplace, the demand for automation and cost-efficiency is paramount. Along with the need for automation is the need for security.

Programmatic marketing cannot succeed if incidences of fraud plague consumers and companies. IAB and other third party services have developed RTB platforms, to defend against fraud by presenting clear red flags in any suspected areas. Along with use of RTB platforms, other actions such as regular reports and site lists in order to further improve optimization. De Lombarde continues with programmatic partner criteria. "An established and quality-focused programmatic partner should be a constant and reliable resource for you.

Once you've found a good match for your brand, you can start to reap the benefits that come with proactive programmatic media campaigns." (De Lombarde) Programmatic partners are an important facet of programmatic marketing. It allows for effective management of marketing as well as makes room for regulation and transparency. Business deals and partnerships thrive on trust and efficacy. If a programmatic partner provides that, programmatic marketing will continue to subsist and advance. Another article explaining programmatic ad buying explains the automation process.

""Programmatic" ad buying typically refers to the use of software to purchase digital advertising, as opposed to the traditional process that involves RFPs, human negotiations and manual insertion orders. It's using machines to buy ads, basically." (Marshall) Time is money and many business do not want to waste time spending money in meetings and business calls to meet their aims. They want to do things as quickly as possible without sacrificing quality.

Programmatic ad buying, an important part of programmatic marketing, allows for digital ads to get sold and bought without the need of sales people or human ad buyers. Without programmatic ad buyers, programmatic advertising technology would not be as effective. Efficiency is what makes programmatic advertising technology such a huge selling point. Efficiency promotes cheaper prices and less use of valuable resources. Programmatic process are efficient because machines never tire. Human need sleep, they need breaks, they need food and water.

Machines don't need any of that brining the costs of spending down. Instead that money can go into other areas to improve the overall business. This does not mean however that machines are fully replacing humans. It just means it provides a cost-effective alternative to traditional methods. Furthermore, technology needs humans to perform the task of inputting the code and developing the software and hardware to create these automated machines.

Technology, especially in the case of programmatic marketing is mainly used to remove the use of humans for menial, repetitive tasks. Some of the menial tasks associated with traditional marketing include: directing insertion guidelines to publishers and handling ad tags, nonetheless they're still mandatory to augment campaigns and to design approaches.

"Programmatic technology will probably mean there are fewer ad buyers in the world, but it could also allow both marketers and sellers to spend more of their time planning sophisticated, customized campaigns instead of getting bogged down in bureaucracy." (Marshall) What Marshall means is, the jobs for buyers and advertisers will decrease, however other jobs to maintain and build these systems will increase. People will then be used for complex, original tasks instead of simple, repetitive ones.

In an article by Cameron, the writer discusses why programmatic advertising has become so popular. The reason being is advertisers see the heavy and increasing use of smartphones and tablets and the need for ongoing convenience. People are no longer looking at televisions and computers as their main source of entertainment. Advertisers see mobility and convenience as the new environment for advertisers. "Hunt claimed advertisers were becoming more familiar with mobile and tablet video advertising formats and increasing their budget allocations as a result.

He also said advertising agency desks were upping their focus on executing programmatic mobile and tablet video ad campaigns."(Cameron) Cameron uses an example from a book suggesting video RTB usage will expand throughout the country due to mobile network demand.

"The State of Online Video Programmatic and Real-Time Bidding in Australia and Southeast Asia also called for supply-side platforms (SSPs) and demand-side platforms (DSPs) to work more closely together to ensure video RTB usage continues to grow across the region." (Cameron) Additionally it is without a doubt a key marker in how effective programmatic marketing it as it needs RTB platforms for fraud prevention. Looking at programming marketing as a process that assists companies in building an audience is another way to understand the true capabilities of such a technology.

Programmatic marketing is a controlled, multi-layered technique generating need for the software design of an organization. In order to produce such need, one must prepare the following: a good understanding of what a customer need and the ability to adapt and modify a product to meet those needs. (Kaiser & Egan 24) Profit producing companies can easily change their products to suit the needs of a customer. However non-for profit organizations differ. This is where programmatic marketing may have its weak points. However programmatic marketing in general has many benefits.

Programmatic marketing has the ability to position itself to consumers in a way that can help non-for profits like art organization to build their platform and attract people to their organization. "Online gaming, social networking, and on-demand programming are drawing customers away from presenting arts organizations. It is for these reasons, nonprofit arts organizations need an online brand presence with strategically positioned messages to attract customers and continue to succeed." (Cable) Programmatic marketing allows for better brand creation and brand presence.

It allows organizations to develop and formulate a professional identity and that can help them gain trust and dedicated followings. Still, as great as programmatic marketing can be for both the profit and non-profit sectors, most companies still go for traditional advertising as their bulk spending. "Currently, the majority of advertising dollars are not being directed to online practices.

They also state that "over the next three years, brand marketers expect nearly 40 percent of their ad budget to be spent on integrated, 2cross-platform campaigns" (Cable) That doesn't mean however that the budgets toward advertising will remain the same. Continual success seen in programmatic advertising will lead to more and more companies opting for spending on software and hardware that integrates programmatic processes. From an ROI perspective programmatic marketing offers automated buying decisions and zero hassle in regards to sales.

No longer do people have to manage the sales process nor handle humans putting in orders. Automation means less and less marketing costs for labor meaning higher budgets for quality and quantity of advertisements and marketing approaches. Along with automation, programmatic marketing efficiently targets consumers. With programmatic marketing, the objective is to eradicate unexploited clicks and impressions. Therefore, a company only shows ads to users who possess intention and are more likely to produce the anticipated action, like buying. Another key aspect of programmatic marketing are personalized ads.

Personalized messages spark consumer curiosity and subsequently consumer action. Customized call-to-actions constructed from their current browsing comportment, allows for directed marketing to be made appealing just for the one consumer versus traditional methods of appealing to everyone. As previously discussed, there are numerous forms of programmatic marketing.

"In the display world, programmatic marketing often takes the form of dynamic retargeting on Real-Time Bidding (RTB) exchanges." (Ranadive) Ranadive examines why RTB has become a platform for programmatic marketing: RTB is one of the fastest growing parts of digital marketing, and it holds significant promise to increase marketer's ROI. According to eMarketer RTB Digital Display ad spend, will grow from a $1.9B market in the US in 2012 to a $8.5B market by 2017, a growth rate of 35% CAGR.

As a percentage of total digital display ad spending, eMarketer predicts RTB will grow from 13% in 2012 to 29% by 2017. (Ranadive) For digital marketers, the goalmouth of every marketing campaign is to influence the exact audience at the exact time, bring a convincing and persuasive message, and then enhance based on the outcomes. This objective can be disintegrated into the background of Creative, Targeting, and Measurement. Targeting meaning reaching the target audience at the best time. Creative meaning delivering a persuasive message and enhance based on the outcomes.

To further understand the dynamics of progressive marketing, one must examine dynamic search retargeting on RTB display exchanges within the context of targeting, creative, and measurement. (Ranadive) Ranadaive use for his analysis on the topic a theoretical instance involving a user named Rebecca and Costco Travel, a marketer. Rebecca wants to plan a vacation to Hawaii. Costco Travel wishes to match their services to users who wish to vacation to Hawaii.

Through some anonymous data they project an ad specifically customized to target the needs of Rebecca as she goes and browses the web. She clicks the ad and is then taken to the website where she can make plans to go to Hawaii. The company gets Rebecca's business and the ad has fulfilled its job. RTB is user driven. Much like with Rebecca's desire to plan a vacation to Hawaii, everything in relation to the marketing is target to this desire versus other methods that involve content.

With old-fashioned digital advertisements, a media buyer would purchase advertisements centered on the content of a publisher or company's website, as a substitution to influence a preferred audience. For instance, previously, a travel marketer would procure advertisement catalogue on the travel segment of a portal's website to encourage vacation bundles to Hawaii. However in RTB, instead the advertiser will target an individual user they think will most likely buy. As the RTB interchanges and runs an auction for each ding, marketers then.