In the media technology world, brands are seeing digital media return on investment grow sixfold with this new approach.
That’s according to Forbes editor Brandon Gutman, who reported on the programmatic buying efforts of Kellogg Co. If you haven’t heard of programmatic buying or are only somewhat familiar with it, here’s why it matters: With the right plan, it offers a better return on your media dollars and is a better way to reach your target audience.
Simply put, programmatic buying means using software technology to buy and sell ad impressions. It’s called programmatic because that’s how the online campaigns are booked, flighted, analyzed and optimized via demand-side software and algorithms.
International Data Corp predicts spending on real-time bid display advertising will increase by nearly 60 percent year over year through 2016. If programmatic buying lives up to expectations, it will be the fastest-growing segment of digital advertising for the next two years.
Most major online publishers in the United States now sell at least some of their ad space by using automated programmatic technology, according to research by the Interactive Advertising Bureau and Winterberry Group.
Targeted; efficient; fewer wasted media dollars
With a programmatic approach, ads are bought and sold through an auction-based pricing model (commonly referred to as real-time bidding). You’ll pay whatever price the ad impression is worth at that moment, and the automation handles negotiations and ordering. You won’t need buyers to send out RFPs, negotiate buys and send insertion orders, which makes the process more efficient overall.
Your ads only appear on a website if the person viewing the site fits your established criteria. The goal is to target your audience and let the algorithms optimize the rest.
Get the pros and cons of traditional and programmatic approaches with this chart.
Only spend on what’s working
Programmatic buying gives you instantaneous access to key metrics, so you can make changes at any time during a campaign. This means you can monitor buys against key