Programmatic advertising is an efficient, data-driven way to buy highly relevant audiences at scale. It's the most efficient way to buy digital ads and get your ad served in today's advertising landscape. In New Zealand, 95% of Kiwis use the internet every day, showing that businesses need to have a strong online presence.
According to the IAB New Zealand Digital Advertising Revenue Report 2020, almost $ 413 million was spent on digital advertising during the fourth quarter of 2020 alone. This is 18.9% growth over the previous year. The full year 2020 reached more than $ 1,341 billion and a growth of 6.6% over the previous year.
Thanks to the information that programmatic provides, brands can make smarter decisions than ever. However, marketers and creative agencies still have no idea what is possible in programmatic. This is a great missed opportunity.
The programmatic industry is going to solve the problem for our clients of being better marketers, and we are going to solve the problem for consumers of avoiding ad blocking.
What is programmatic advertising?
Programmatic advertising refers to the use of software to purchase digital advertising, as opposed to the traditional process involving RFPs, human negotiation and manual insertion orders. It is the automation of decision making and placement, all achieved in real-time, targeting specific audiences and demographics. It’s the right message to the right people at the right time.
How does programmatic advertising work?
Programmatic automates the buying and selling of online ad space across a vast number of websites across the world.
In a competitive market, buyers are bidding on impressions that fit within their budget and targeting parameters, while publishers are looking to fill 100% of their ad space at the pace dictated by the market.
Programmatic algorithms use real-time data to identify the best online audiences for each individual campaign and bid for each individual impression across multiple devices.
Programmatic advertising bridges the gap between publishers and advertisers by making the buying process easier, while automation makes the transaction more efficient.
Programmatic algorithms analyse audience data, enabling real-time campaign optimisation and helping advertisers target potential customers who are most likely to convert.
The programmatic advertising fallacy
Some marketers and media agencies have the perception that programmatic advertising is only associated with buying low-cost inventory (also known as remnant) that no one wants. While this may be how programmatic began years ago, it has now become a completely transparent and multifaceted tool that is capable of implementing multiple strategies and optimising performance across many platforms. Programmatic uses the latest technologies available to deliver the best performance and reach the right audience at the right cost.
Why embrace programmatic advertising?
Programmatic buying is one of the fastest growing segments in media. Higher efficiency is the obvious advantage, although it has several deeper and long-term ramifications:
• Makes ad buying highly targeted
• Opens new environments for companies
• Improves results and efficiency
• Automates ad buying, making life easier for marketers.
• Create value, efficiency and performance
• Facilitates better monitoring of campaigns
• Helps marketers connect with audiences faster and smarter.
• Promotes qualitative inventory
• Provides an opportunity to scale
• Measurable ROI to predict future investment results
The benefits will become more apparent as technology develops and as marketers and publishers gain more experience in programmatic.