The following post from Aarki highlights the benefits and future of programmatic advertising.
As the mobile market grows and mobile advertising is used on a wider scale, there is a greater demand for more sophisticated technology. In today’s mobile advertising industry, programmatic is one of the hottest buzzwords. However, although most marketers hear about programmatic advertising, many of them are still confused about it.
The Benefits of Programmatic Advertising
So what is programmatic and why should advertisers use it? Programmatic automates the decision-making process of media buying for mobile ads by targeting specific audiences in a real-time bidding (RTB) setting.
The most revolutionary aspect of programmatic buying is that it allows advertisers to serve a specific ad to particular audiences in a certain context. Advertisers can precisely determine which audience gets to see which ad and when. It provides a huge advantage over the traditional segment-based buying, where advertisers can only offer one generic ad to a large and diverse segment of audience. By reaching only the audience you are targeting, you avoid spending the advertising budget on the wrong group of audience.
Another major advantage of programmatic is that it uses automated technology, which improves the efficiency of the media-buying process of campaigns. This means you can gather and analyze data more efficiently in order to develop insights to optimize campaign performance.
As programmatic advertising becomes more and more popular, so does the quality of inventory offered by publishers. While there were certainly some initial hesitations from advertisers in adopting the programmatic approach, programmatic has made its mark in the market, with many publishers now utilizing it as a main source of media
The Future of Programmatic Advertising
Nevertheless, programmatic advertising still has a long way to go and the future is bright. A study by eMarketer shows that this year, more than two-thirds of all digital display advertising will be purchased through the programmatic channel. U.S. programmatic ad spending alone is forecasted to reach $22.10 billion. That’s an almost 40% jump over last year, representing 67% of the total digital ad spend in the U.S. On the other hand, mobile can be credited as the key driver of growth in programmatic. This year, mobile programmatic spending alone is projected to reach $15.45 billion in the U.S.