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Programmatic Advertising – A Data-Driven Thinking

December 13, 2017

Digital Marketing is Evolving

Until recently, digital advertisers were very vulnerable to fraud. Many were misled into paying for bottom-of-the-page ads that no one scrolled down far enough to see. “Click fraud” was also a huge risk.

The central questions in digital advertising today are: Where will people listen? What content will they engage with? How do I reach them? The answers are key to understanding the new trend that is shaping the industry.

What is Programmatic?

Programmatic is buying digital advertising space automatically, with computers using data to decide which ads to buy and how much to pay for them.

Programmatic boils down to the use of data and technology enabling marketers to make decisions in real time about the advert they want to deliver to the consumer. It helps you define the audience demographically and behaviourally based on the individual’s internet consumption habits over time.

Look beyond retargeting. I think, it’s time to be data driven and strategy based that gives you the ability to predict and prospect right from the start to make every campaign better and hit your KPIs with less retargeting

The real-time aspect is only an advantage if you know how to use it. If you’re buying real time, but you’re not looking at the result and you’re not optimising then it’s like when you make a TV booking two month in advance.

Programmatic media buying allows the “owner/brand” to tailor a specific message and creative to the right person, at the right time in the right context – using audience insight from the brand (the customers you want to target) around the kind of audience they want to target. This methodology should deliver far more precision and personalization of messaging and media, resulting in more efficiently targeted campaigns, and less of the “spray and pray” methodology of digital advertising – which is less targeted and based on sheer volume (mainly of impressions).

4 pillars to programmatic success

Data │Inventory │ Technology │Expertise

Most common mistakes by advertisers

Another challenge within the ad industry is that in the rush to roll out programmatic advertising, the user experience has often been put last – leading to frustration among consumers. Many people can relate to being chased around the internet by a product they purchased weeks ago.

The ambition of pushing programmatic forward has led to the balance of monetisation and the user experience sometimes being tipped slightly the wrong way. It’s a very delicate balance, which is why issues like ad blocking are now coming up.

Brands are putting more interesting dynamics in front of people, but all this creative are quite heavy and can interrupt the user experience. These are things we need to think about a lot more. This is key to the longevity of this industry in general, because after all we need to reach the users.

How to use data effectively for programmatic

Try to understand who our target audience is. What do they do, where do they live, what are they interested in? You have a lot of data points that you can look into, from search data and social media listening, to your own data.

There are three tiers of data to consider. First-party data is the advertiser’s own data on their customers, while second-party data is collected by someone other than the advertiser, such as an agency, who shares that data with the brand to help structure the programmatic strategy. Third-party data is available to anyone at a cost.

One of the worst errors in programmatic advertising occurs when advertisers try to develop a single “perfect” ad rather than keeping a few variations on the table. Programmatic advertising programs do better when they start with a few variations of an ad based on the affinity of consumers and the stage they are in.

You think you understand 80%, but it is still 20% to 100%. So, work hard to obtain a thorough understanding of programmatic.

Robin Xavier

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