Programmatic Advertising: Future Of Digital MarketingSeptember 26, 2018
The digital marketing world is a transient one. Internet adverts have moved on from being just simple click-to-copy displays to unnecessary sales pitches that no longer glue audiences within a few years after the birth of the first-ever clickable banner ad. With a steady expansion in the field of digital media and devices, these digital ad campaigns have become more engaging, in-line with the trend, and targeted. The marketing ecosystem in the internet space has become cut-throat and comprehensive. And this space is only getting more dynamic with the entry of newer technology. Advertising will certainly not be left untouched by these changing times as automation takes over every industry. Programmatic advertising is an automated channel for buying ad space in real time. Automated here refers to being programmed using machines and algorithms. Although this tech has been in the vicinity for quite some time, it is definitely going to rise and change the very face of digital marketing.
Surveys stated that in 2017 alone, programmatic ad spending surpassed USD 27 billion. In India, the digital ad industry is estimated to quickly grow to INR 18,000 crore by 2020, of which mobile advertising will have more than 60% of the market share. The segment is spending incredible sums of cash on mobile campaigns posted on various social media platforms. While most digital media purchases are direct, reports predict that programmatic advertising will contribute to more than 25% of all digital media ad transactions in the country by the end of 2018. Another study expects the industry to grow to a massive sum of USD 84.9 billion.
Why is programmatic advertising so important?
Advertising is moving towards a stance that is more customer-centric and potent. Until a few years ago, the ad space involved manual bookings, which entailed painstaking meetings, hierarchical bottlenecks, and extended negotiations. It has become impossible for advertisers to keep pace with the supply as the number of publishers is multiplying overnight. It only meant that it was time for automation to intervene and take control of things. Programmatic advertising has made life easy for advertisers by:
- Cutting out middlemen and simplifying the process
- Making ads more target-oriented by using data for audience profiling
- Giving a better ROI
In the future, there may be a mismatch between companies still focused on channel separation and audience segments, and those who take on a more consumer-centric view regardless of what communication channel is used. Marketers will develop two important skills: the ability to manipulate new tools for the management, design, and execution of campaigns and skills around the data to analyze, segment, model targets. The industry is also noticing a fall in instances of fraud and an increase in spend transparency all thanks to programmatic advertising. This technique is responsible for changing the way brands buy and create ads for mobile, desktop, television and other media. Although there may be some regulatory challenges, there is no doubt that programmatic advertising is here to stay.
The advance of programmatic advertising represents a critical watershed moment in the era of data and technology. Companies need a vivid insight into what their audience requires and how it feels given that technology without data is of no use. Although programmatic advertising is still at an inceptive stage in India, with the early success of many startups in the ad-tech space, it is clear that this trend will make a mark.