Interview with a Specialist: What You Need To Know About Programmatic Advertising

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Unless you have been hiding under a rock for about a year or so, you would have heard programmatic advertising being mentioned by agencies, forums, blog articles and conferences. But what exactly is it?

Programmatic is seen as the future of advertising on the web, with Google targeting 60% of digital advertising budgets spent on Programmatic by next year. According to Forrester, programmatic will account for the majority of all digital advertising spend over the next few years.

At VYNE we like to stay on top of all digital trends and opportunities and share what we learn. We did a short interview with Tyron Zeelie one of our programmatic specialists. In this interview, he answered questions that we often get asked about programmatic. This article shares some key insights from the interview.

What is Programmatic Advertising?

There’s a bit of a mixed opinion on what exactly ‘programmatic advertising’ is. The digital advertising space is constantly changing and terms do get mixed up pretty easily. Programmatic is defined as the automation of buying advertising space across the internet with the goal of serving the right ad to the right person at the right time.

What does it mean to buy advertising space?

Essentially you’re bidding for an advertising placement on a website or app. Everytime a site or app loads where an ad is available, an auction runs and the highest bidding ad wins the impression. This auction is almost instant. If it’s a highly desirable site, people will bid more for that ad space making it more expensive. Traditional bidding requires a human to set a bid amount they’re willing to pay whereas programmatic advertising will determine if it's worth bidding for that impression or not. The decision is based on whether the machine thinks the impression is going to help reach a pre-defined goal like cost per acquisition or click-through rate.

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What are the opportunities that Programmatic brings?

Programmatic advertising has massive opportunities to help businesses grow when set up and run correctly. For example, a client wants to increase subscriptions for a software product. The programmatic campaign uses machine learning to optimize ad spend towards a set goal, in this case maximizing subscriptions. This is far more efficient and accurate than what a human can achieve with manual bidding and gets much better results for the same budget.

What are the key areas you report on?

Different agencies report on different areas, and at VYNE we’re focused mainly on attribution and ROI which carries through in our reporting and optimisations. We always report on the client’s main goal whether it be the cost per acquisition, revenue or conversions. At VYNE, we believe in a holistic approach, we want to grow the client’s business through actionable insights, not focus our reporting on metrics like clicks. We believe that correct attribution with a good setup and optimized campaigns will grow businesses and help them achieve their goals.

Can you give an example of how Programmatic works?

Let’s say a mobile retailer wants to run an advertising campaign. Google can determine if an internet user is in the market to buy a new phone based on things like search history, sites visited, etc. When setting up a programmatic campaign, there are audience targeting options for people in the market for a new phone. Combining this with demographic targeting, geographic targeting, and more, a mobile retailer can advertise their business to the right people and increase their phone sales.

How can it help my business

Machine learning is able to be far more efficient and accurate than a human which means clients can get the most out of their advertising budget. These efficiencies are always aimed at growing our client’s businesses based on their goals. 

How soon can you expect results? It depends on the amount of data available. The more data you have the sooner you can expect results. Acquisition campaigns need a high volume of impressions, clicks and conversions. Whereas remarketing campaigns need audience lists built from non-converters, engaged users, etc. It really depends on the main campaign goal.

Is programmatic advertising the future of ALL advertising?

Programmatic is doing really well and is improving rapidly. It is growing and is continuously being developed to work more efficiently for big and small business so we may not know for sure where it could be in the future, but I am optimistic.

Currently, it still requires a lot of human strategy to set up and optimize. However, it is very powerful and works 24/7 to produce great results.

Programmatic Advertising is a service we provide to businesses at VYNE Digital. As one of the leading agencies utilising programmatic advertising we can work closely with you to help grow your business. Contact us today to book your free consultation.