Programmatic advertising uses algorithms to allow buying and selling of advertising space in real time
So how does programmatic advertising help you get the most out of your investment? It offers a bidding system that automates the buying and selling of advertising space by using advanced software to optimize the transactions. Today, marketing is a lot more complex function with many more elaborate elements forming part of it, than was the case earlier, while launching and sustaining campaigns.
There are many tools available to help you focus your spending on the strategies that you think, will be most effective. AdRoll, a leading retargeting firm, in its 2017 “State of Performance Marketing” report makes some useful suggestions on newer techniques that will prove beneficial for marketers. AdRoll’s findings are quite amazing – over 70% of marketers are running programmatic ads on social media, over 50% use it for campaigns on mobile platforms and close to 40% employ it for video marketing. This kind of advertising running on algorithms, that target specific advertisements to specific target groups, is now the ‘hottest’ thing in the world of marketing especially the world of social media marketing, mainly because it has speeded up the process considerably. Here’s a rundown of how programmatic advertising figures in the advertising spending pattern: Social Media – 77%, Mobile – 53% ,SEM – 38%, Video – 37% and Display – 32%.
As compared to 2013, when just 7% of marketers spent more than 50 percent of their budget on programmatic advertising the figures today are quite exciting. There’s no doubt that the results are better than what most people expected, more so in advertising, where ROI (Return on Investment) has always been the ‘big’ issue. Programmatic advertising has arrived with a lot more purpose and precision about where the money spent on advertising is going and what is it bringing back. AdRoll has proven that effective retargeting requires marketers to understand user behavior much better and pay a lot more attention to retargeting. That’s because users these days switch devices and platforms very fast, and therefore marketers need to be equally smart in utilizing the data they already have access to, particularly the social data.