Take a look at this quick read to see what exactly is programmatic. DONE PROGRAMMATICALLY RIGHT - WITH A DEEP UNDERSTANDING FOR MILLIONS OF CONSUMERS.
Which is programmatic advertisement? Beginners guides for beginners
The programmatic advertisement is developing continuously. To find your way through technical lingo is the first stage in getting to understand exactly what is programmatic. Driven by the display trading council's definition of the use of automated purchasing and sales of multimedia, the program can be applied to everything from displays to digitally out-of-home and TV.
"Programatic began using the remaining stock," says Dee Frew, IAB UK Program Director. In simple terms, a brand or agency decides on a Demand Side Platform (DSP) what to buy and how much to charge, while a publisher uses a Delivery Side platform (SSP) to buy advertising spaces from it.
Both of these plattforms are then synchronized in near real-time. Promoting the program is one thing that guarantees the impression. Using abbreviations such as DSP and SSP as well as DMP (Data Managment Platform) and the API (Application Program Interface) can make the programming seem overly complicated. Programatic purchases automatic advertisements, where computer users use information to determine which advertisements to buy and how much to charge for them.
Ken Kulbok, programmatic EMEA director of LinkedIn Programmatic, says that programmatics are all too often cumbersome and complex. "In simple terms, programmatically buys automatic electronic ad spaces, with computer users using information to determine which advertisements to buy and how much to charge, often in near-real time.
It is Harry Harcus, CEO of the programmatic Xaxis group M, who defined programmatic advertisement as a medium buy via digital technologies rather than a manually operated procedure. "The programme is based on the use of information and technologies that enable distributors to make real-time choices about the advertisements they want to provide to consumers," he states.
Says programmatic marketing specialists have been able to move from a simple medium -buy with a publishing company to performing medium operations on an impression-by-impression base. For example, instead of purchasing one million prints at a single go at The Telegraph and making a commitment to do so over a certain timeframe, a trademark may purchase one million prints, but these may be distributed among several publishing houses or holders of mediums targeting a particular target group sector.
Personalization and the capability to automatize buying appropriate to consumers is the programmatic defining for Sophie Dufouleur, Head of Corporate Finance and Head of Corporate Communications at Nestlé Nespresso. "It is [ programmatic] for me to look at the adaptation of creativity to the different groups in reality.
A better grasp of the behavioral knowledge gained from statistical analysis is the first stage in reaching an effective programmatic approach. Peer-to-peer information is the advertiser's own information about its clients, while peer-to-peer information is gathered by someone other than the advertiser, such as an agent who is sharing that information with the marketing company to help shape the programmatic approach.
Trademarks should view information as clients or prospective clients, says Harcus. In order to surpass this point, he recommends using information to find new leads and looking for an audience similar to the current one. It is a balance act for all makes. P&G CEO Marc Pritchard said in August that the business shifted its spending away from Facebook targeting and said it had become too tight in finding certain consumers.
For the future, Pritchard affirmed that P&G's programmatic approach aims to strike a balance between range and accuracy. Hossein Houssaini, Havas Media Group's'' Head of Programmatic Solution Globally, recommends that brand owners not only concentrate on re-targeting if they want an optimal programmatic approach to their campaigns. A good database and a good strategic approach give you the opportunity to forecast and potentiate from the beginning to make each and every marketing effort better and your key performance indicators with less retargeting," he states.
At present, the most commonly used way to buy programmatically is through news organizations that use a DSP to perform the programmatic action. Concern over visibility and ad frauds, however, is leading brand owners to move from managing purchases to program-driven in-house processes. Unilever, for example, has its own Mindshare entity within its Mindshare office named Ultra, which works exclusively on its programmatic interests.
Reckitt Benckiser, the FMCG firm, has decided in favour of an in-house programmatic group. Kulbok recognizes that a "one sized fit all" paradigm does not work, but that it is about adapting quickly and controlling spending to make purchases more effective. Whereas marketing specialists could theoretically begin to buy programmatically themselves with a debit-card and access to a buyer side site, there is much to consider both in terms of logistics and in terms of ambition, Harcus states.
Knowing how to use the real-time aspects is only an asset. When you buy in cash but don't pay attention to the results and don't optimize, it's like making a TV reservation two month in advance. What you' re doing is like making a TV reservation two month in advance. What you're doing is like making a TV reservation. Harcus sees, however, that more marques are adopting a hybride stance, where the advertisers license an element of the tech for internal use, giving them greater exposure to the processes.
Nespresso mainly depends on its agents to work on the purchase, but Dufouleur knows why some brand names may want to work programmatically in-house. "Many changes have taken place in the attempt to create real visibility into the program, and some brand names thought the best way to handle it was to get an intern staff.
In order to obtain the best results and a high degree of visibility, Houssaini recommends brand names and agents to work closely to gain a deep appreciation of programming. If you go in the opposite way, it could have a greater influence on your editions than you think," says Houssaini. Programatic enables advertisers to monitor the effects of their investments and optimize their advertising campaign in real-time.
Xaxis gives programmatic campaigners a weeks or two before advising them to optimize advertising effectiveness for their unique key performance indicators. Whilst Harcus recognises that the great attraction of the programme is due to the higher levels of advertiser scrutiny, it is important to always be clear about the target.
Because of the real-time nature of the game, where changes are possible at any given moment, it's very important to stay clear about what the advertiser's target is," he states. The Dufouleur company thinks that the real-time benefits of programming are only as good as the marketer's capacity to analyze the results. "if you know how to use the real-time aspects.
When you buy in cash, but don't pay attention to the results and don't optimize, it's like a TV book two month in advance," she says. The programmatic shopping should free brand names and agents to devote more creative thought to customers, Kulbok explains, who has seen how business-to-business brand names and publishing houses are increasingly working programmatically.
Fréw acknowledges that programmatic promotion will ultimately allow the brand to move beyond conventional budgeting to a more customer-centric mindset. Despite the considerable benefits of the program, Frew still thinks that acceptance will never be 100% because automatic purchasing of multimedia is not suitable for every make. "When you have an attraction to the bulk markets, you should definitely work [programmatically], but we're assuming that programmatically-driven implementation will never make it 100%.