Programmatic marketing is relatively new to the World Wide Web and in a brief time it has become one of the most popular modes of digital display advertising. In 2017 programmatic advertising will grow 31% and its growth will be higher than any other form. By 2019 its predicted to compose over 50% of digital advertising. Programmatic marketing is red hot!
What is programmatic advertising and why the hype?
Robert Allen from Smart Insights defines it as “automated bidding on advertising inventory in real time, for the opportunity to show an ad to a specific customer, in a specific context.”
- It is highly targeted- exhibits adverts that consumers will be receptive to, guaranteeing stronger engagement and conversion.
- Advertisers no longer have to pre-neogiate price- only pay for the impression they receive.
- Greater flexibility- with number of impressions, publishers and cost.
- Compatible for mobile marketing– As mobile is now the most utilised device, this is essential.
Manifestly, programmatic marketing has its perks for digital marketers and even for consumers (goodbye impertinent ads?). But like all novel technologies, it still has its quirks-
- Issues with visibility- Despite programmatic adverts being suited to the consumer, they still aren’t always being seen.
- A lack of knowledge- There are many variant options for programmatic marketing, its success depends upon familiarity with its functionality.
- It is insular- There is very little transparency between the media agencies and digital marketers, which creates distrust due to potential for overcharging.
It is likely these hiccups will be resolved as programmatic marketing practices are refined. Its capacities are highly agreeable- it is efficient, cost effective, presents relevant advertisements to consumers and is mobile friendly.
Do you think programmatic marketing will become the dominant form of online advertising? What do you dislike and like about this mode of online advertising?