tag:econsultancy.com,2008:/topics/real-time-bidding Latest Real-time bidding content from Econsultancy 2016-05-19T11:21:14+01:00 tag:econsultancy.com,2008:BlogPost/67835 2016-05-19T11:21:14+01:00 2016-05-19T11:21:14+01:00 Bringing data into creativity in a programmatic world Glen Calvert <p>Data isn’t sexy, consequently, it isn’t loved by brand advertisers. In their minds, data is the preserve of the far less noble direct marketing realm.</p> <p>The idea of putting data at the core of campaigns, which the direct marketer does, is an anathema to the brand advertiser.</p> <p>A neat illustration of this thinking is through <a href="https://econsultancy.com/training/courses/personalisation-enhancing-the-customer-experience/">personalised advertising</a>. Brand marketers can’t deny that they’d like to connect with us all individually.</p> <p>The “Share a Coke” campaign in which cans and bottles were personalised was a huge brand success.</p> <p>Around 1,000 name variations were available on shelves and over 500,000 available through the online store.</p> <p>So, why do brand advertisers seem reticent to deploy personalisation techniques online – a media tailor-made for such activity due to data?</p> <p>Why do we so rarely see good examples of this type of campaign in the digital environment?</p> <h3><strong>Falling in love with data?</strong></h3> <p>The answer to the previous question is branding’s lack of love for data. However, this mind-set could be changing due to a couple of factors.</p> <p>Brands love TV because it’s a wonderful platform to tell stories at scale.</p> <p>In comparison, online platforms for telling good brand stories at scale using data and creative have been more constrained.</p> <p>With smaller screen sizes and more limited ad ‘real estate’, brand banner advertising is more of a challenge.</p> <p>However, the skills and appetite for meeting this challenge and using data efficiently are increasing.</p> <p><img src="https://assets.econsultancy.com/images/0007/4847/share-a-coke.jpg" alt="Share a Coke Bottles" width="460" height="330"></p> <p>This improvement in the banner format is combining with a growth in other branding-type formats in display advertising, such as video and <a href="https://econsultancy.com/blog/63722-what-is-native-advertising-and-do-you-need-it/">native advertising</a>.</p> <p>The IAB’s latest <a href="https://econsultancy.com/blog/67746-10-action-packed-digital-marketing-stats-from-this-week" target="_blank">digital ad spend figures</a> showed both video and native spend grew around 50% last year to account for nearly half of display ad spend.</p> <p>These two parallel developments in display prove its increasing allure as a branding medium - FMCG advertisers, historically considered the least relevant in regards to online ads, are now the dominant spender on display, accounting for nearly £1 in every £5.</p> <p>We’re seeing this increasing willingness to embrace data manifested by clients taking control of their data destiny.</p> <p>A number of high profile brands are taking on long-term software contracts with data management platforms (DMPs), showing the appetite clients have to both control and exploit the data opportunity.</p> <h3><strong>Programmatic plumbing</strong></h3> <p>Alongside the rise in online branding formats, the other factor changing mind-sets among brand advertisers, rather surprisingly, could be <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">programmatic</a>.</p> <p>Something originally seen as even less sexy than data.</p> <p>The “plumbing”, or logistics, side of programmatic is becoming less of an obstacle to using data and creative to tell a good brand story.</p> <p>The amount of heavy-lifting required is reducing in terms of time, resources and money among agencies and vendors to connect the data, the creative and the inventory.</p> <p>Consequently, there’s a growing sense of enthusiasm about take-up among brands.</p> <p>So, as programmatic matures, many of these growing pains are less pronounced.</p> <p>As the plumbing between creative, data and buying becomes more automated, it means the industry can move more towards programmatic as a creative solution.</p> <h3><strong>Programmatic as creative</strong></h3> <p>In turn, <a href="https://econsultancy.com/blog/67554-2016-the-year-of-programmatic-creative/" target="_blank">programmatic creative</a> has become more advanced and more flexible, without compromising scale and automation, to meet the specific creative requirements and nuances that advertisers have for being able to tell their brand story.</p> <p>Programmatic creative is now flexible and advanced enough to insert dynamic and personalised elements into online ads to enable the idea of “mass personalisation”, which was essentially what the big idea “Share of Coke” brand campaign was shooting for.</p> <p>These developments hopefully thaw the relationship between brand marketers and data, particularly as they open up exciting and innovative brand campaign ideas that can be brought to life in this brave new world.</p> <p>Take, for example, Netflix’s campaign to promote the addition of all ten seasons of Friends to its library.</p> <p>Conceived by Ogilvy Paris, it’s a pre-roll video campaign that responds dynamically to videos watched on YouTube by inserting a clip from Friends that relates to the video topic searched for.</p> <p><iframe src="https://www.youtube.com/embed/K_3uKmLFHRI?wmode=transparent" width="560" height="315"></iframe></p> <p>Essentially, it uses data to relate Friends to almost anything you search for on YouTube.</p> <p>What will be your big brand idea this year that comes alive through data?</p> <p><em>To learn more on this topic, book yourself onto Econsultancy's <a href="https://econsultancy.com/training/courses/programmatic/">Programmatic Training Course</a>.</em></p> tag:econsultancy.com,2008:BlogPost/67654 2016-03-16T14:25:45+00:00 2016-03-16T14:25:45+00:00 Google courts enterprise marketers with launch of Analytics 360 Suite Patricio Robles <p>To do all of this, the search giant has combined six products into a single platform:</p> <ul> <li> <strong>Audience Center 360</strong>, a <a href="https://econsultancy.com/reports/the-role-of-dmps-in-the-era-of-data-driven-advertising">data management platform</a> (DMP).</li> <li> <strong>Optimize 360</strong>, a website testing and personalization solution.</li> <li> <strong>Data Studio 360</strong>, a data and visualization tool that can be used to analyze data collected by all of the Google Analytics 360 products.</li> <li> <strong>Tag Manager 360</strong>, which is based on Google's existing tag management solution.</li> <li> <strong>Analytics 360</strong>, the professional analytics solution that Google previously offered under the name GA Premium.</li> <li> <strong>Attribution 360</strong>, an attribution platform that marketers can use to evaluate the performance of their campaigns across channels.</li> </ul> <p>Google says that Analytics 360 Suite has been several years in the making, and was developed based on feedback it received from enterprise marketers, many of whom complained that their existing marketing analytics tools were not meeting their needs.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/3052/blog_images__62_-blog-flyer.png" alt="" width="470" height="392"></p> <h3>Integration, integration, integration</h3> <p>Google believes it is delivering on those needs, and early customers like L'Oreal Canada, which says it has doubled anticipated revenue with Google's new offering, are already singing Analytics 360 Suite's praises.</p> <p><iframe src="https://www.youtube.com/embed/ETGsJfYb-gw?wmode=transparent" width="560" height="315"></iframe></p> <p><strong>But Google's secret sauce might not be breadth or depth, but rather integration.</strong></p> <p>Audience Center 360 offers native integration with DoubleClick and over 50 third-party data providers.</p> <p>Tag Manager 360 plays nicely with a variety of third-party vendors, including Turn, comScore, Criteo and Marin Software.</p> <p>Attribution 360 is capable of distributing data to DSPs and <a href="https://econsultancy.com/reports/rtb-buyers-guide/">RTBs</a>, can pull in data automatically from DoubleClick Campaign Manager, and offers an Offline Conversion Connector to help marketers attribute in-store sales to digital campaigns.</p> <p>Analytics 360 works with all Google ad products, and can be used to create remarketing lists that are automatically available in AdWords and DoubleClick Bid Manager.</p> <p>Because many marketers are already so heavily invested in Google's ad-related services, all of the integrations Analytics 360 Suite offers could give Google an edge when trying to win over marketers who are currently using competing solutions from a variety of vendors, some of whom only provide one or two of the functions in Analytics 360 Suite.</p> <p>That makes Analytics 360 Suite a threat to many companies, including Adobe, which offers a DMP, Adobe Audience Manager, and Tableau, which offers a business intelligence data visualization solution.</p> <p>Analytics 360 Suite likely won't be cheap – reports suggest pricing will be in the six-figure range – but if Google can lure enough enterprise customers with a one-stop shop proposition, it could prove to be one of Google's most important product launches in some time.</p> tag:econsultancy.com,2008:BlogPost/67554 2016-03-01T15:48:00+00:00 2016-03-01T15:48:00+00:00 2016: the year of programmatic creative? Glen Calvert <p>However, far less attention has been paid to the innovative element of this automated buying and selling of digital media – the creative.</p> <p>And herein lies the seed to the <a href="https://econsultancy.com/blog/67574-has-programmatic-advertising-killed-creativity-in-marketing/">merging of programmatic and creative</a>; which is the next wave of disruption and innovation to impact the digital ad industry – <a href="https://econsultancy.com/events/creative-programmatic/">programmatic creative</a>.</p> <h3>So, what is programmatic creative?</h3> <p>The software powered, automated, algorithmic approach to media buying, enabling pinpoint accuracy of people-based targeting with advanced optimisation is half the story.</p> <p>Programmatic creative is the enabling of intelligent creative, where each person is exposed to a brand’s message that adapts, changes and is personalised to them, regardless of the device or site they’re on.</p> <p>Programmatic creative enables the content of an ad to be programmatically manipulated so it’s more relevant and personal to the person it’s being served to, with a continuous feedback loop for optimisation.</p> <p>The same application of <a href="https://econsultancy.com/blog/64743-predictive-analytics-machine-learning-and-the-future-of-personalization/">machine learning algorithms</a> to decide who to target, when and on what site, will be applied to the creative messaging as well.</p> <p><strong><em>How will Programmatic Advertising impact the role of marketing professionals?</em></strong></p> <p><iframe src="https://www.youtube.com/embed/k93THhdXIIw?wmode=transparent" width="615" height="346"></iframe></p> <p>Programmatic creative optimisation enables the ad elements to adapt from various data points – such as the user’s previous surfing behaviour, their location, the time of day etc. – to change the message, font or colour in an ad.</p> <p>Programmatic creative also (and more interestingly) utilises user-specific data to enhance the messages themselves for that very individual.</p> <p>For example, showing the exact product they may like, and changing the price and offer based on who they are.</p> <p>In short, programmatic creative enables the intelligent manipulation of the creative based on what you know about that cookie ID, and the automated use of live data inside the creative so it’s increasingly personalised for the individual.</p> <p>It’s important not to confuse programmatic creative with serving dynamic ads via programmatic channels or dynamic creative optimisation.</p> <p>Programmatic creative goes beyond serving dynamic ads programmatically, it has the potential to adapt messages to individuals in real time on an on-going basis for true one-on-one communication, compared to delivering dynamic creative that is served to user segments that are predefined by the marketer.</p> <p>The critical benefit of programmatic creative is that it’ll be the only way to truly 'talk' to millions of people individually, and reach that previously mythical land for advertisers of "mass personalisation."</p> <h3>The ramifications</h3> <p>Software that can automatically build ads, optimise and personalise them, will have significant ramifications on the entire advertising value chain. It means traditional owners of marketing communications need to be prepared.</p> <p><strong><em>Has Programmatic Advertising killed creativity in marketing? </em></strong></p> <p><iframe src="https://www.youtube.com/embed/7fEj3_hG5mc?wmode=transparent" width="615" height="346"></iframe></p> <p>It’s not going to be easy. It’s a pretty well-known fact that creatives – the people designing the ad – don’t talk with the programmatic delivery teams and, therefore, don’t know if their work was effective or not.</p> <p>Some of the blame for this lies with marketers who could do more to teach creatives how their work is impacted by programmatic media plans, and the potential benefits ad tech provides without impinging on the creative process.</p> <p>Much of the focus of start-ups and innovation with digital advertising has been focused in the infrastructure, the plumbing hidden beneath that no one sees. However, with the increasing need to thwart <a href="https://econsultancy.com/blog/67076-the-rise-and-rise-of-ad-blockers-stats/">the threat of ad blocking</a>, 2016 will see much more focus on how technology can impact what we actually see, that which is delivered to consumers.</p> <p>Relevance and usefulness, without overstepping the delicate privacy line, is the key to a viable and successful online ad model.</p> <p>The impact on our industry will be huge and creative agencies should be the first to be prepared.</p> tag:econsultancy.com,2008:BlogPost/67574 2016-02-24T15:03:00+00:00 2016-02-24T15:03:00+00:00 Has Programmatic Advertising killed creativity in marketing? David Moth <p>And it’s also commonly criticised for relying too heavily on automation, thus removing the creative element from marketing campaigns.</p> <p>To see whether this is the case, we spoke to two seasoned digital experts, namely:</p> <ul> <li> <a href="https://www.linkedin.com/in/clare-deloford-4694b342">Clare Deloford</a>, Digital Development Associate Director at ‎Starcom MediaVest Group</li> <li> <a href="https://www.linkedin.com/in/janmikulin">Jan Mikulin</a>, Global Head of Digital Marketing at Grayling</li> </ul> <p>You can watch their answers below, or read a brief summary of what they had to say.</p> <p>And to learn more about programmatic advertising, come along to our <a href="https://econsultancy.com/events/creative-programmatic/">Creative Programmatic</a> event in London next week.</p> <p>These videos were created in partnership with <a href="https://wooshii.com/">Wooshii</a> and are the first in a series of interviews we’ve carried out with senior digital marketers from various agencies and brands.</p> <p>Now, on with the show...</p> <h3>People often accuse programmatic of killing creativity. Do you agree with this point of view?</h3> <p><iframe src="https://www.youtube.com/embed/7fEj3_hG5mc?wmode=transparent" width="615" height="346"></iframe></p> <p>Clare and Jan both strongly disagreed with the suggestion that programmatic kills creativity.</p> <p>According to Jan, it’s incumbent upon marketers to think about how the technology can enable them to be more creative.</p> <p>The technology has a momentum around it which in turn creates a need and a desire for more creativity.</p> <p>Clare said that the ability to run targeted, personalised ads actually encouraged greater creativity. </p> <h3>How do you think programmatic will impact the role of marketing professionals?</h3> <p><iframe src="https://www.youtube.com/embed/k93THhdXIIw?wmode=transparent" width="615" height="346"></iframe></p> <p>Clare said that programmatic has been quite difficult for marketers to understand, which creates fear and apprehension, however people now realise that it’s a very important technology.</p> <p>And by automating the buying process, marketers will have more time to invest in content creation and richer experiences which are really important for every brand.</p> <p>Jan suggested that programmatic has seen a similar cycle to other advancements in advertising and communications.</p> <p>There was initially a flurry to understand how it worked, then marketers gradually got to grips with it, now we're beginning to use it as a standard operating procedure, and that process will start again soon when a new marketing technology appears.</p> <h3>How has programmatic affected the relationship between agencies &amp; clients? Are there misgivings over transparency?</h3> <p><iframe src="https://www.youtube.com/embed/eyCkp5Kx6yo?wmode=transparent" width="615" height="346"></iframe></p> <p>Another major criticism of programmatic is that <a href="https://econsultancy.com/blog/65860-13-interesting-quotes-from-our-programmatic-marketing-panel/">the process isn’t transparent</a>, which can lead to mistrust between agencies and their clients.</p> <p>Jan said that things will only turn sour if the agency had a poor relationship with their clients in the first place and wasn’t being upfront and honest.</p> <p>However, he also referenced an IAB report which shows that only 45% of people who use programmatic in agencies actually understand the technology and the concept behind it.</p> <p>That lack of knowledge can potentially impact the entire industry in terms of trust and failure to generate ROI.</p> <p>Clare said that Starcom MediaVest tries to educate its clients to ensure everyone understands how the technology works.</p> <p>For example, it has an online tool where clients can run a dummy campaign and take a look “under the hood”.</p> <p>Marketers are more comfortable with programmatic once they see how it works.</p> <p><em>And finally, to learn more on this topic book yourself onto Econsultancy’s <a href="https://econsultancy.com/training/courses/programmatic/">Programmatic Training course</a>.</em></p> tag:econsultancy.com,2008:BlogPost/67517 2016-02-11T11:08:00+00:00 2016-02-11T11:08:00+00:00 How to embrace creativity in the programmatic age Maeve Hosea <p>These personas include an understated man who wants to look stylish but not fashionable, ‘aspiring fashionistas’ and ‘extreme fashionistas’.</p> <p>Tom Lancaster, senior creative manager at <a href="http://www.topman.com/">Topman</a>, oversaw the development of multiple creative executions, which then ran in parallel media placements online. The one that attracted the most interactions became optimised.</p> <p>“Programmatic allows you to run segmented work that will appeal to all of your audiences – it then optimises the creative to the version that best suits a media channel’s audience,” comments Lancaster.</p> <blockquote> <p>Taking the creative programmatic route gives you a much bigger brief and a lot more work to do, but the benefit is that when you are building that creative you can make it the right kind of thing for each target audience.</p> </blockquote> <p><a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">Programmatic advertising</a> is currently gaining momentum because of the attractive promise to brands of data-led real-time relevancy and accuracy in who they can target.</p> <p>By leveraging the capacities of programmatic display advertising, Topman not only targets people on key demographics such as age and profession but has found a relevant way to reach consumers on publisher and lifestyle sites beyond the usual fashion media.</p> <p>However, although creative programmatic strategy is a part of the ongoing picture for Topman, it has its limits.</p> <p>The first is the cost factor: “You have to think how much of your budget you want to spend on your creative versus your media buy,” explains Lancaster.</p> <p>“And obviously your media buy has to be sizeable enough to want to spend money on all those additional creative executions.”</p> <p>It is not only about the budgets for individual campaigns either: if a brand is taking a programmatic approach, it has to make sure it has a tailored experience to take them through to post click.</p> <blockquote> <p>If you capture someone with quite understated style but then take them to somewhere where there isn’t any of that available to them, then you may have acquired someone but you might not be showing them something that converts them.</p> </blockquote> <h3>Topman</h3> <p>Looking ahead, Lancaster sees a considerable untapped opportunity in the creative programmatic sphere. He would like to exploit the ability to embed live text with an advert, updating the copy for each type of customer and their lifestyle habits.</p> <p>He also sees the potential for serving different creatives in relation to the weather at a given IP address.</p> <p><img src="https://assets.econsultancy.com/images/0007/1698/Screen_Shot_2016-02-11_at_11.02.16.png" alt="" width="800"></p> <p>“It is all the sort of things people have wanted to do for a really long time and if you had this granular level of media buying and creative production then you would do it,” says Lancaster.</p> <p>“However, the challenge is having all those matrix of options at the same quality level: getting that ‘hero creative’ finish lots and lots of times.”</p> <h3>Right Time, Right Place</h3> <p>While some fear the implied threat to creativity that the automated nature of programmatic brings, Nicolas Roope, founder and creative director at Poke London sees it as timely.</p> <p>“It is newly available inventory coming together with concepts that already have personalisation and contextuality built in that makes programmatic exciting now,” comments Roope.</p> <blockquote> <p>Programmatic is a natural extension of storytelling in the digital space: always about some degree of interaction, some degree of personalisation, some degree of contextuality and timeliness.</p> </blockquote> <p>With creative programmatic, those key principals of time, place and context can be applied at scale, giving mass reach to personalised advertising.</p> <p>Essentially, it allows brands to get more relevant and creative and Roope sees that creativity flourishing in the work of Unilever’s Axe brand in Brazil.</p> <p>The brand recently leveraged programmatic adverts to serve online viewers with up to 100,000 variations of its “Romeo Reboot” advert.</p> <p><iframe src="https://player.vimeo.com/video/131929702?color=fcfbfa&amp;title=0&amp;byline=0&amp;portrait=0" width="615" height="346"></iframe></p> <p>Those variations in soundtrack, setting and plotline were part of a personalisation drive that allowed for changes to six out of the eleven scenes in the advert.</p> <p>“Fundamentally programmatic is interesting,” says Roope. “Because it highlights how limp, unintelligent advertising in a digital interactive space just doesn’t make any sense.”</p> <p>If successful, he argues, it delivers compelling creative, connecting people with the brand at the opportune moment. Roope also cites Google’s work with billboards as a valuable example of an inspiring creative approach to programmatic.</p> <p>Google trialled its DoubleClick ad technology last year, allowing premium billboard ads to be bought programmatically and passers-by to see the most relevant adverts for the time of day and location.</p> <p>“The real time quality of weather, sports and travel news was quite a surprise and interesting for people,” comments Roope. “That contextuality can be really powerful.”</p> <h3>Affinity and Desire</h3> <p>The antagonism with programmatic tends to come when you examine the formats used in most programmatic deals, which are currently much more constraining than the formats used in broadcast media.</p> <p>Within creative programmatic, you need to have very quick, low-cost adaptability for the best campaigns to work. This may call for a hundred different versions of a very similar idea and so the construct tends to be more limited and more mechanical.</p> <p>Programmatic has its place for Charles Vallance, co-founder and chairman of integrated agency VCCP, but it shouldn’t be at the expense of building a brand in full view.</p> <p>He argues that brand values and brand affinity are inextricably linked to bigger budget brand awareness campaigns.</p> <p>“We must value the advantages and efficiencies of programmatic,” he says. “But we must not have that at the expense of the colossal value of building a brand and building affinity that is shared and appreciated by a broader audience.”</p> <p>Vallance says that there are two things that communication can do: the short-term goal of selling things and the longer terms one of creating an environment of ‘buyability’ around a brand.</p> <p>“If I only ever communicate to people with the precision of programmatic, I might never make them want to buy,” he cautions.</p> <blockquote> <p>The two go hand in hand: you need broadcast or mass communication to create a collective sense of why this brand is desirable, what this brand means, what this brand stands for, and then programmatic can harness and exploit that.</p> </blockquote> <p>Shared real-time experience will never go out of style and is arguably much more valuable than automised, fragmented ones, however accurate they may be.</p> <p>“There is nothing very programmatic about Star Wars,” offers Vallance. “You don’t want 100 different versions: you want the one version that everyone is talking about.”</p> <p><strong>Creative Programmatic Conference</strong></p> <p>Charles Vallance, Tom Lancaster and Nicolas Roope will be speaking on a panel debate at Econsultancy’s <a href="https://econsultancy.com/events/creative-programmatic/">Creative Programmatic</a> event on 2nd March.</p> <p>The session will examine the opportunities and challenges of harnessing programmatic in the creative process.</p> <p><em>Please note that this article was <a href="http://www.marketingweek.com/2016/02/08/how-to-embrace-creativity-in-the-programmatic-age/">originally published on Marketing Week</a>.</em></p> tag:econsultancy.com,2008:BlogPost/67288 2015-12-07T14:03:51+00:00 2015-12-07T14:03:51+00:00 Programmatic trends in 2015: the big picture Ben Davis <p>And if you want to learn more on this topic, book yourself a place at our <a href="https://econsultancy.com/training/courses/programmatic/">Programmatic Training Course</a>.</p> <h3>Is there a creativity vacuum?</h3> <p><strong>David Carr, Strategy Director at DigitasLBi </strong></p> <p>As we all raced to keep up with the exponential increases in options and terminology, maybe new realism began to creep in. </p> <p>Had media left creative behind? Was programmatic only about cheaper buys and cheaper dynamic creative optimization with production efficiencies, real-time price updates and maybe a “personalized” colour-way and call to action based on someone’s browsing history?</p> <p>When you asked around the industry for great creative examples the same ones would come back: Axe Brasil’s Romeo Reboot with its 100,000 dynamic videos, Diesel Decoded’s 400 bespoke copylines and the Amanda Foundation’s digital “Pawprint” work. </p> <p>Yet programmatic is not just about direct response and CPAs. Programmatic is people. Programmatic allows creative to build a tailored story arch for the individual.</p> <p>This makes brand ideas and human truths more important than ever to stimulate and organize the work making it consistent, relevant and distinct.</p> <p>It means rethinking storytelling through a lens of data and technology to give personalization at scale and enable a brand relationship that learns – not just buying on a DSP.</p> <p><em>Axe Brasil’s Romeo Reboot was an example of dynamic video.</em></p> <p><img src="https://assets.econsultancy.com/images/0006/9737/romeo_reboot.jpeg" alt="romeo reboot" width="366" height="205"></p> <h3>Brands seek transparency and control</h3> <p><strong>David Carr, Strategy Director at DigitasLBi </strong></p> <p>It is this technology lens that means new ways of organizing an agency are needed along with new client-agency relationships.</p> <p>Creative, media and technology need to be re-integrating or at least work far more closely together. This way savings from spend can be used to create more effective work and technology can give greater transparency.</p> <p>When at most 45 cents in the dollar reaches publishers and even an in-house or managed service on a shared platform leads to unknown ad-tech, DSP sell-side, reseller SSP and primary SSP fees plus data leakage to competitor algorithms, transparency is vital.</p> <p>Taking a brand-first approach where clients control the bidding strategy AND the tech roadmap while not being lumbered with platform development and management might be a solution here?</p> <p><strong>Chris O'Hara, VP Strategic Accounts at Krux Digital (author of Econsultancy's <a href="https://econsultancy.com/reports/programmatic-branding">Programmatic Branding</a> report)</strong></p> <p>More and more, we are seeing big marketers decide to “take programmatic in house.”</p> <p>That means hiring former agency and vendor traders, licensing their own technologies, and (most importantly) owning their own data.</p> <p>This trend isn’t as explosive as one might think, based on the industry trades - but it is real and happening steadily.</p> <p>What brought along this shift in sentiment? Certainly concerns about transparency; there is still a great deal of inventory arbitrage going on with popular trading desks.</p> <p>Also, the notion of control. Marketers want and deserve more of a direct connection to one of their biggest marketing costs, and now the technology is readily available.</p> <p>Even old school marketers can license their way into a technology stack any agency would be proud of.</p> <p>The only thing really holding back this trend is the difficulty in staffing such an effort. Programmatic experts are expensive, and that’s just the traders!</p> <p>When the inevitable call for data-science driven analytics comes in, things can really start to get pricey! But, this trend continues for the next several years nonetheless.</p> <p><em>Only app development is outsourced more than display advertising (source: <a href="https://econsultancy.com/reports/digital-marketing-organisational-structures-and-resourcing-best-practice-guide/">Organisational Structures and Resourcing Best Practice Guide</a>)</em></p> <p><img src="https://assets.econsultancy.com/images/0006/9541/Screen_Shot_2015-11-27_at_17.15.05.png" alt="outsourced disciplines" width="615"></p> <h3>Users suffer (especially on mobile) without union of creative, data and tech</h3> <p><strong>David Carr, Strategy Director at DigitasLBi </strong></p> <p>As all media continued to go mobile in 2015 the underbelly of programmatic was exposed. Hundreds of competing cookies on a page with javascript that bloated page weights above 1mb – if they even allowed the page to render at all – became a too common occurrence.</p> <p>In this context programmatic became not just the future of ad buying but perhaps the best advert for <a href="https://econsultancy.com/blog/67076-the-rise-and-rise-of-ad-blockers-stats/">Adblockers</a> you could have. </p> <p>Creative, data and technology consolidation for a mobile world is one potential solution but ultimately the only way that programmatic can live up to its promise is for all three to work together.</p> <p>That way we can get back to people. Where do they go, what are they interested in, how do they respond to content and messages and how do we offer them something useful, usable and delightful? </p> <h3>Targeting with purchase data improves segmentation</h3> <p><strong>Chris O'Hara, VP Strategic Accounts at Krux Digital</strong></p> <p>Remember when finding the “household CEO” was as easy as picking a demographic target?</p> <p>Marketers are still using demographic targeting (Woman, aged 25-44) to some extent, but we have seen them shift rapidly to behavioral and contextually based segments (“Active Moms”), and now to Purchase-Based Targeting (PBT).</p> <p>This trend has existed in categories like automotive and travel, but is now being seen in consumer packaged goods.</p> <p>Today, marketers are using small segments of people who have actually purchased the product they are marketing (“Special K Moms”) and using lookalike modeling to drive scale and find more of them.</p> <p>These purchase-defined segments are a more precise starting point in digital segmentation - and can be augmented by behavioral and contextual data attributes to achieve scale.</p> <p>The big winners here are the folks who actually have the in-store purchase information (such as Oracle’s Datalogix, 84.51, Nielsen’s Catalina Solutions, INMAR, and News Corp’s News America Marketing).</p> <p><img src="https://assets.econsultancy.com/images/0006/9738/archery.jpeg" alt="archery targets" width="354" height="235"></p> <h3>Programmatic direct as a route through complexity</h3> <p><strong>Chris O'Hara, VP Strategic Accounts at Krux Digital</strong></p> <p>For years we have been talking about the disintermediation in <a href="https://econsultancy.com/reports/the-new-mobile-display-ecosystem">the space between advertisers and publishers</a> (essentially, the entire Lumascape map of technology vendors), and how we can find scalable, direct, connections between them.</p> <p>It doesn’t make sense that a marketer has to go through an agency, a trading desk, DSP, an exchange, SSP, and other assorted technologies to get to space on a publisher website.</p> <p>Marketers have seen $10 CPMs turn into just $2 of working media.</p> <p>Early efforts with “private marketplaces” inside of exchanges created more automation, but ultimately kept much of the cost structure.</p> <p>A nascent, but quickly emerging, movement of “automated guaranteed” procurement is finally starting to take hold. Advertisers can create audiences inside their DMP and push them directly to a publisher’s ad server where they have user-matching.</p> <p>This is especially effective where marketers seek an “always on” insertion order with a favored, premium publisher. This trend will grow in line with marketers’ adoption of people-based data technology. </p> <p><em>For more on programmatic in 2015, see other <a href="https://econsultancy.com/reports/search/?q=chris%20o%27hara">blog posts and research by Chris O'Hara</a>.</em></p> tag:econsultancy.com,2008:BlogPost/67287 2015-12-07T11:32:47+00:00 2015-12-07T11:32:47+00:00 Eight ways to improve the real-time bidding ecosystem Fiona Salmon <p>Certain agencies are going further, with a goal for 100% of the digital ads they buy in 2016 to have some form of automation.  </p> <p>But while this is a huge change for the industry, more is yet to come. Currently programmatic ads are sold in a four stage priority, very neatly <a href="http://www.iab.net/media/file/IAB_Digital_Simplified_Programmatic_Sept_2013.pdf" target="_blank">set-out by the IAB</a>.</p> <p>First come the “automated guaranteed” or “programmatic direct” systems, which use technology to replicate the favourable pricing and certainty of placement of the industry’s non-programmatic direct relationships. At the bottom of the priority are the open <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">Real-Time Bidding (RTB) auctions</a>.</p> <p>While the US has seen some use of automated guaranteed deals, the UK hasn’t quite been so keen, and few trading desks are demanding it.</p> <p>Moves to integrate the industry’s established ad booking systems with automated platforms could breathe more life into the automated guaranteed market.</p> <p>However, with the greater adoption and improved technology in the RTB markets, we’ve got to wonder – how long will this priority last?</p> <p><em>The real-time bidding ecosystem</em></p> <p><a href="https://econsultancy.com/reports/real-time-bidding-ecosystem/"><em><img src="https://assets.econsultancy.com/images/0006/9732/rtb_ecosystem.png" alt="" width="344" height="383"></em></a></p> <p>RTB systems have already improved to emulate some of the automated guaranteed channel’s benefits in private marketplaces.</p> <p>The more sophisticated RTB platforms are affording ad buyers far greater levels of control over campaign effectiveness, new abilities to define the requisite performance of their chosen ad inventory and great value prices.</p> <p>In fact one of the primary differentiators of the automated guaranteed marketplace is its utility when booking campaigns using non-standard ad creative.</p> <p>Yet RTB systems are also introducing <a href="http://mobilemarketingmagazine.com/vibrant-takes-in-text-programmatic/" target="_blank">more unique formats</a> which challenge even that benefit. Consequently the value of the automated guaranteed deals could be under threat, and they too may fall out of the ad buying priority.</p> <p>Much depends upon which performance criteria are made available through the RTB systems.</p> <p>Here is my wish list, and to learn more on this topic download <a href="https://econsultancy.com/training/courses/programmatic/dates/2797/">Econsultancy’s Programmatic Branding Report</a> or book yourself onto the <a href="https://econsultancy.com/reports/programmatic-branding">Programmatic Training Course</a>.</p> <h3><strong>1. More effective limits on bot fraud</strong></h3> <p>Realistically bot fraud will never be solved regardless of the channel through which the ad space is sold.</p> <p>However, it’s imperative that the fight against fraudsters continues, and the cleanest programmatic platforms should win-out. </p> <p><a href="https://en.wikipedia.org/wiki/Rutger_Hauer"><img src="https://assets.econsultancy.com/images/0006/9733/blade_runner.jpg" alt="" width="399" height="309"></a></p> <p>The simplest tactic to follow is to opt for programmatic platforms that give access to a premium network of reputable publishers.</p> <p>However, greater reporting on the legitimacy of inventory sources, instances of malware, fake impressions and masking of domain names will help the entire industry to end the scourge. </p> <h3><strong>2. More guarantees of brand safety</strong></h3> <p>In terms of brand safety, the minimum requirement for programmatic systems must be to enable ad buyers to select ad space verified by the <a href="http://www.jicwebs.org/current-priorities/brand-safety-online/161-dtsg-seal-press-release" target="_blank">JICWEBS Digital Trading Standards Group (DTSG)</a>.</p> <p>Programmatic platforms that can distinguish ad inventory that both complies with and goes beyond these standards would be extremely helpful.</p> <h3><strong>3. Combinations of targeting data</strong></h3> <p>Certain ad technologies already enable targeting based on a combination of <a href="http://www.vibrantmedia.com/en/new-large-scale-private-ad-exchange-moves-out-of-beta/" target="_blank">audience and contextual relevance</a>.</p> <p>However, easier compositing of brands’ own (“first party”) data, publishers’ (“second party”) data, behavioural targeting companies’ (“third party”) data, search string data, and the user’s precise and favourite mobile device location data will bring hyper-targeting to RTB systems.</p> <p>As so many publishers are making more ad space available programmatically it should become increasingly possible to combine targeting techniques without compromising the scale of campaigns.</p> <h3><strong>4. More native ad formats</strong></h3> <p>The functionality of ad formats directly impacts campaign performance. Currently most of the ads available through programmatic systems are the ubiquitous and indistinctive IAB banners.</p> <p>Everyone has been using these standard IAB banners for years despite complaints of banner blindness, their inherent lack of creativity, and intrusiveness.</p> <p>As more ad buyers are seeking the best performing ad formats there is a growing demand for non-standard formats which outperform IAB banners – primarily the ever improving programmatic native ads.</p> <p>However, at present most native ads find it difficult to scale across thousands of online publishers to achieve a campaign with sufficient reach across the mobile and desktop web.</p> <p>Even the automated guaranteed deals can struggle with programmatic native ads. There’s just too much offline negotiation and constant customisation for most of these formats to be involved in a truly automated marketplace.</p> <p>However, the choice of scalable, truly native ad formats available programmatically is growing.</p> <p>These are being made available through RTB systems, offering more creative and native placements to positively surprise and engage consumers. There’s no reason to think that other non-standard formats will be excluded from RTB marketplaces in the future.  </p> <h3><strong>5. Deliver viewable ads</strong></h3> <p>Comscore has verified that <a href="https://www.comscore.com/Insights/Blog/Viewability-Benchmarks-Show-Many-Ads-Are-Not-In-View-but-Rates-Vary-by-Publisher" target="_blank">the majority of digital ads never actually have a chance to be seen</a>.</p> <p>This has resulted in viewability becoming one of the fundamental performance criteria upon which ads are now being selected. Organisations such as <a href="http://www.mindshareworld.com/news/groupm-and-unilever-push-better-online-ad-viewability" target="_blank">GroupM and Unilever</a> are leading the way, with the most stringent viewability demands in the industry.</p> <p>There are whispers that certain agencies <a href="http://www.iabuk.net/about/press/archive/iab-lifts-advisory-against-trading-on-viewable-impressions-for-display" target="_blank">will start trading on viewable impressions</a> as early as Q1 2016.</p> <p>Platforms that are trialling viewability performance campaign options have sometimes seen advertisers compromise on the number of impressions they buy, and even the media titles their ads appear on, in return for premium viewability.</p> <p>However, publishers expecting to develop a higher yielding product line from “viewable cost per mille” (VCPM) campaigns in the future are likely to be disappointed.</p> <p><img src="https://assets.econsultancy.com/images/0006/9734/Screen_Shot_2015-12-07_at_11.26.31.png" alt="" width="700"></p> <p>Brands buying ads expect all of them to be seen, and don’t want to pay more for them.</p> <p>What’s more, those platforms trialling viewability performance criteria often do so on a binary basis – i.e. either the ad formats pass the Media Ratings Council’s definition of a viewable ad (“half an ad for one second”) or they don’t.</p> <p>However, that performance criteria and method devalues the performance of a great many ad formats that frequently display far more than 50%+ of every ad.</p> <p>Those ads should not be marketed as being on a par with the lowest acceptable industry standard.</p> <p>If programmatic platforms want to adopt such a binary method for identifying viewable impressions, it’s better to focus on whether 100% of the ads are viewable or not, and back it up by a service level agreement. </p> <p>Alternatively, programmatic platforms could incorporate viewability score data from providers such as Moat, which will show the full spectrum and degrees of viewability, giving essential insight to ad buyers.</p> <p>At an absolute minimum, programmatic platforms have to move away from predicted viewablility scores.</p> <p>The technology and research providers are out there to deliver precise metrics on viewability. Soon there will be no excuse not to guarantee viewability through programmatic platforms. </p> <h3><strong>6. Precise page positions</strong></h3> <p>The precise positioning of an ad impacts its value. Currently, as long as ads are displayed above the mythical fold, most advertisers will be happy.</p> <p>However, an ad placed further down a page can actually have just as much value or more if it displays within contextually relevant editorial at an appropriate point in the consumers’ engagement with the content.</p> <p>Right now, it’s likely that above the fold ad space will command higher prices than those below the fold.</p> <p>However, programmatic platforms that enable ad buyers to choose a range of page positions to display their digital ads will have an important additional control on their campaign budget as well as performance.</p> <h3><strong>7. Optimum site depths for ads to appear</strong></h3> <p>Loyalty to particular publications is dropping due to the ubiquitous sharing of deep-links on social media that take consumers directly to media titles’ articles.</p> <p>Many people will view just one page of a media title before returning to what they were previously doing, or moving onto a different site.</p> <p><img src="https://assets.econsultancy.com/images/0006/9735/Screen_Shot_2015-12-07_at_11.27.45.png" alt="" width="700"></p> <p>This signifies that it’s less important – and arguably less valuable – for ads to appear high up in the media title’s page hierarchy, such as on the homepage.</p> <p>Programmatic platforms enabling advertisers to select the site depth at which their ads should be displayed will give enormous control to marketers.</p> <h3><strong>8. Optimum session depths are different</strong></h3> <p>Just as it’s essential for an ad to appear at the opportune page depth and site depth, it is also important to calculate the timing of an ad’s display within the user’s session.</p> <p>Many ad buyers will typically pay more through direct deals with publishers to have their ads displayed early in a user’s session, implying that they are the premium slots.</p> <p>However, the more engaged consumers are with a particular subject matter generally indicates that they are more valuable to relevant brands.</p> <p>It will depend upon the ad campaign, of course, but it’s very possible that the later an ad is delivered to the user, the more that user has qualified themselves as being valuable to the brand.</p> <p>This could well mean that the ads will be displayed to fewer people, but the fact that they are displayed to a targeted user can in turn qualify those ad impressions as better value for money to the advertiser.</p> <p>If programmatic platforms offered page, site and session depth controls we’d soon find the campaign sweet spots – where ads are displayed at the precise points in users’ sessions to be both qualified and most open to engaging with an ad.</p> <p>Ultimately the programmatic markets will be rationalised into unified platforms. How quickly depends upon how fast new performance criteria and KPIs are made available through RTB systems.</p> <p>Once ad buyers can make ad campaign choices based on more solid data and the actual performance criteria of ad inventory, so RTB systems will enable the purchase of the most premium inventory. </p> tag:econsultancy.com,2008:Report/3926 2015-10-16T15:52:00+01:00 2015-10-16T15:52:00+01:00 PPC Bid Management Technology 2015 <h2>About this guide</h2> <p>This buyer's guide is aimed at those who are investigating the global market for paid search bid management technology. The report, which has a global focus, looks at the market trends within this sector, with profiles of eight leading suppliers, a detailed analysis of market trends and guidance about how to select the right technology. </p> <p>The guide also includes insight from experts within the PPC bid managment industry.</p> <h2>Content</h2> <p>The report starts with an introduction to the different forms of PPC Bid Management, followed by a look at the recent trends in the industry, as well as an assessment of its strengths, weaknesses, opportunities and threats (SWOT).</p> <p><strong>Trends covered in this guide include:</strong></p> <ul> <li>Bid managment technology continues to reap investment</li> <li>Mobile's rise fuels further bidding strategy evolution</li> <li>Changing habits force break from pure-play bid management</li> <li>Changing landscape keeps pressure for fresh approaches</li> </ul> <h2>Who is this guide aimed at?</h2> <p>This guide is primarily aimed at organisations looking for a PPC Bid Management Technology provider, or are reviewing the capabilities of their current provider. The report is also relevant to anyone interested in understanding the current state of the marketplace. The content of this guide is relevant globally. </p> <p><strong>Download a copy of the report to learn more.</strong></p> tag:econsultancy.com,2008:BlogPost/67018 2015-10-07T02:02:00+01:00 2015-10-07T02:02:00+01:00 Programmatic advertising in APAC: An Introduction Jeff Rajeck <p>Everyone is talking about programmatic ad buying, but with all of the unfamiliar systems, strategies, and acronyms it's a bit difficult to understand what people are saying.</p> <p>And it's even more tricky in Asia-Pacific as programmatic advertising is a new concept in the region and APAC countries are all at a different stage of adoption.</p> <p>So, in order to understand programmatic in APAC, we need to first go through what the term actually means, and then later go through where we are at in the region.</p> <h3>Webinar announcement</h3> <p>But before we start, I'd just like to highlight that Econsultancy will be hosting a webinar on the subject, <strong>Programmatic: Trends, Data and Best Practice (APAC)</strong>, on 15 October at 10am Singapore / 1pm Sydney time.  </p> <p><a href="https://econsultancy.com/events/programmatic-trends-data-and-best-practice/">Click here to book your spot.</a></p> <h3>Programmatic Overview</h3> <p>Trying to figure out what's going on with programmatic ad buying in Asia is tough. Few industry overviews are available, and the ones which do exist offer statistics which presume that you already know something about the area.</p> <p>For example, Campaign Asia-Pacific and Ipsos announced a <a href="http://www.mediaquark.com/programmatic-in-the-apac/">great headline figure</a> earlier this year: Seven in 10 marketers in Asia-Pacific use or plan to use programmatic.  </p> <p>This tells us, sure, that programmatic is becoming more popular but what does that mean?</p> <p>Well, here today we're going to start from the basics and try to unpack it. We will first look at what programmmatic ad buying is and then in a follow-up post have a look at what this means for APAC.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7735/60331596-blog-flyer.jpg" alt="" width="470" height="461"></p> <h3>First, a definition</h3> <p>Before we get into any details, it's best to start with a definition.</p> <p><strong>The term 'programmatic' typically means an ad buying process that relies on software, or programs, to buy and sell advertising space.</strong></p> <p>And that definition lets us know that programmatic uses algorithms instead of human judgement for pricing ads. But what does programmatic look like in practice?</p> <p>Well, <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">a previous Econsultancy post</a> offers some help. 'Programmatic... is like Google AdWords, only it's for display ads rather than search results'. And I think that is both a useful explanation and a little bit misleading.</p> <p>Useful in the sense that if you know <em>nothing</em> about programmatic, but you know AdWords, then it helps to put it in context. </p> <p>But it's misleading because Google AdWords is fairly limited compared to a true programmatic solution, as you will soon see. </p> <h3>Next, the systems</h3> <p>To understand programmatic a bit better, we have to get beyond a high-level definition and get into the details about what makes the whole programmatic ecosystem work. </p> <h4>Advertisers and Publishers</h4> <p>First off, we have the things we all know and understand - advertisers and publishers.  These two act as you would expect.  The advertisers buy ads and the publishers sell ad space.</p> <p>It's fundamentally no different than how we operate today, but it's how the advertising is bought (i.e. programmatically) where things get interesting - and where the acronyms start.</p> <h4>Demand-side platform (DSP)</h4> <p>Any serious discussion of programmatic should include a relatively new type of ad buying system, a 'demand side platform.'</p> <p>Simply put, a DSP is a system which advertisers, or the 'demand-side', use to buy ad space. It's a 'platform' in the sense that you don't directly buy the space on the publishers, but instead input parameters (typically who you want to reach) and the DSP then, programmatically, buys the ad space for you.</p> <p>And in this way, a DSP is like Google AdWords but with the added bonus of also managing your ad buying. But AdWords is limited to using Google search traffic and a few other factors as targeting parameters. </p> <p>DSPs, however, are connected to many different networks (not just Google) and they offer targeting options beyond what single-platform publishers could offer.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7737/targeting-blog-flyer.jpg" alt="" width="470" height="282"></p> <p>These parameters can include things we are familiar with such as time of day, age ranges, or even interests. But they can go much further than that and offer new targeting options such as life events (just married or retired), recent purchases, or even the emotional content of the video they are watching.</p> <p>And DSPs also learn about the effectiveness of your targeting and can change your targeting subtly and dynamically to optimize results. </p> <p>To really benefit from the options available, though, you need another system. And we need to learn another acronym...</p> <h4>Data management platform (DMP)</h4> <p>The name 'data management platform' sounds simple, but DMPs are arguably the most complex, and most important, part of the programmatic ecosystem.</p> <p>'Data management' does sounds like something quite basic like, say, a database with an admin screen.</p> <p>But there is much more to a DMP than just managing data. DMPs also typically include data organization tools, audience builders, analytics, an optimization engines, and APIs to get data in and out.</p> <p>And with all those features, they are quite difficult to configure and manage. In fact, even sophisticated brand marketers may use a specialist agency with a media 'trading desk' to help configure and manage the platform.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7736/programmatic-ad-buying-blog-flyer.jpg" alt="" width="470" height="250"></p> <p>And proper configuration is just the start. More importantly, your DMP blends first-party (your customer data) and third-party data (from data providers) and lets you build ad audiences that you could never build before.</p> <p>For example, your first party data may be email addresses of customers who have made a big purchase at your store.  </p> <p>A DMP, with third party data, can take that data and blend it with demographic data from another vendor.  </p> <p>Then you can advertise specifically to customers who have another characteristic which you don't know about, say high disposable income, so you can target your ads to the right micro-audience.</p> <h4>Supply-side platform (SSP)</h4> <p>So now we know that the advertiser buys ads using a variety of data sources in their DMP using the capabilities of a DSP. But where do the DSPs buy the ad space?</p> <p>Let's go back to the AdWords comparison. If programmatic is like AdWords, then the DSP (AdWords) buys the ad space from Google search. So Google AdWords provides the demand and Google Search provides the supply.</p> <p>In the world of programmatic buying, there isn't just one supplier, there are millions. But with so many different publishers available, how can DSPs know where to buy?</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7746/news-blog-flyer.jpg" alt="" width="470" height="269"></p> <p>In order to make it easier for DSPs to buy ad space, publishers sign up, typically via an Ad Network, with a supply-side platform (SSP) which then manages both the ad content delivered to the site, the audience data, and paying the publisher for the use of their ad space.</p> <p>How this works is beyond the scope of this post but as, we will cover in the next post, the programmatic industry now has billions of dollars in revenue so you can presume that it works very well indeed!</p> <h3>How it works: Real-time bidding (RTB)</h3> <p>Now that we know who is involved in the programmatic ecosystem, we can now say how this all works in practice.</p> <p>The overwhelming majority of programmatic buying is transacted through a method called 'real-time bidding' (RTB). </p> <p>The way RTB works is that when someone browses a publisher's web page, they tell the SSP that new ad inventory is available. The SSP then informs the DSPs and provides some information about the person who is viewing the page. An auction then commences between the various DSPs connected to the SSPs.</p> <p>The DSPs then bid, in real-time, for that ad space according to a bidding strategy determined by the parameters set by the advertiser. The advertiser who wins the bid, via their DSP, is then given the space to show their ad.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7738/oil-span-blog-flyer.jpg" alt="" width="470" height="202"> </p> <p>What this means in practice, is that a DSP will, programmatically, determine a bid price on behalf of the advertiser so that they are likely to win the ad space for the people they want to reach and lose the bid, thereby not spending ad dollars, on the people they don't care to reach.</p> <p>Note that this all happens in less than a second so that the person viewing the publisher's site will typically receive the ad before the page is even loaded.</p> <p>Of course there are other nuances and complexities to the RTB process, but essentially this is how billions of dollars are now spent on advertising online.</p> <h3>So...</h3> <p>So now you know the participants, the systems, and the acronyms involved in programmatic ad buying, you can see how this all fits together rather nicely in the diagram below.</p> <p>And now that we have covered what exactly programmatic is, we are ready to tackle the stats, trends, and outlook for the programmatic industry in APAC in the next post!</p> <p><img src="https://assets.econsultancy.com/images/0006/7747/programmatic-ecosystem.png" alt="" width="808" height="310"></p> tag:econsultancy.com,2008:BlogPost/66930 2015-09-16T13:50:00+01:00 2015-09-16T13:50:00+01:00 Five things marketers need to know about programmatic Patricio Robles <p>Here are five things marketers should know about the state of programmatic today.</p> <h3>It's still confusing</h3> <p>The number of programmatic platforms has exploded in recent years and the terminology can make a marketer's head spin. RTB, SSP, DSP, DMP, and so on and so forth.</p> <p>In short, programmatic is acronym hell, necessitating <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb">programmatic glossaries</a>. Given this, it's not surprising that a 2014 Forrester study <a href="https://econsultancy.com/blog/66639-the-boom-of-the-programmatic-gong/">found that only 23%</a> of marketers understood programmatic buying. A year later, more than half of marketers <a href="https://econsultancy.com/blog/66759-10-fascinating-stats-about-the-programmatic-advertising-space/">still rate</a> their programmatic knowledge as very poor, poor or average.</p> <p>While many marketers are working to get up to speed, the pace of change and innovation means marketers can never assume that they have programmatic figured out.</p> <p>For example, with programmatic increasingly being used to transact video inventory, marketers are being challenged to learn the nuances between buying display inventory and video inventory programmatically.</p> <h3>Data is critical to making it work</h3> <p>If programmatic is a car, data is the fuel that makes it run. Having enough quality data can make or break a marketer's programmatic efforts and data comes from a variety of sources.</p> <p>Second and third-party data can be very useful, but for many marketers, collecting and putting to good use first party data - the data they gather from their own websites and online platforms - is absolutely critical to taking advantage of the programmatic opportunity.</p> <p>Because of the importance of data, <a href="https://econsultancy.com/reports/the-role-of-dmps-in-the-era-of-data-driven-advertising">data management platforms (DMPs)</a> are taking on an increasingly prominent role in the programmatic space as well over half of marketers believe DMPs are key to future of programmatic marketing. </p> <p><img src="https://assets.econsultancy.com/images/0006/4592/programmatic.png" alt="" width="900"></p> <h3>Programmatic inventory is increasingly diverse</h3> <p>While most programmatic inventory was remnant display inventory in the early days, that's no longer the case. As noted above, programmatic is being extended beyond display to video. And through <a href="https://econsultancy.com/blog/66226-prominent-news-publishers-band-together-to-sell-ads/">a growing number of private exchanges</a>, select marketers can programmatically purchase publishers' best inventory.</p> <p>For marketers, this means one thing: it's more and more difficult to ignore programmatic because so much inventory, and so many different kinds of inventory, are available through programmatic sources.</p> <h3>It can be expensive</h3> <p><a href="https://econsultancy.com/blog/66495-62-of-marketers-use-programmatic-for-brand-campaigns-report/">Marketers expect programmatic to deliver greater efficiency and reduce costs</a>, but as AdAge's Alexandra Bruell recently <a href="http://adage.com/article/print-edition/inside-hidden-costs-programmatic/300340/">discussed</a>, there are a number of hidden costs frequently associated with programmatic that eat up all of the savings marketers can realize on programmatic inventory itself.</p> <p>These costs include labor, agency and platform fees, R&amp;D and errant ad buys. Depending on the marketer and agencies or platforms used, programmatic can, according to Bruell, make programmatic "more expensive than ordering print ad pages or TV commercials through insertion orders and other routine methods."</p> <p>Obviously, this doesn't mean that programmatic isn't worth additional cost in some areas, but as marketers get more sophisticated and realize that programmatic is not a panacea, they are increasingly looking to ensure that unnecessary costs are minimized or eliminated altogether.</p> <h3>Programmatic is the present and future of online advertising, sort of</h3> <p>Tens of billions of dollars of ad inventory are now bought and sold every year through programmatic platforms globally. It's virtually impossible to find a major publisher, ad tech firm or agency that doesn't have some programmatic product or service on offer.</p> <p>Clearly, programmatic is already a very important part of the modern-day online ad market, and arguably it still has a long way to go before it realizes its full potential. But that doesn't mean that programmatic is <em>everything</em>.</p> <p>There will continue to exist a market for non-programmatic online advertising and while programmatic will likely shrink the size of that market over time, it's still going to be large enough that marketers will need to look beyond programmatic to be successful online. </p> <p><em>You can learn even more about the future of marketing at our two day <a href="http://bit.ly/1M8uMOA">Festival of Marketing</a> event in November. Book your ticket today!</em></p>