With new technological innovations coming up in the digital advertising industry people around the world are reaping the benefits.
There is no doubt about the fact that digital advertising is the future. It has already taken over other forms of advertising across the world. With new technological innovations coming up in the digital advertising industry people around the world are reaping the benefits.
What is programmatic
Programmatic advertising has brought about a revolution to the online advertising space. Though not a new word, it is still a mystery to many. Programmatic advertising, also known as programmatic marketing refers to the buying and selling of media inventory through an automated auction process in real-time. Unlike the traditional process where you have to book a slot and negotiate on prices, programmatic acts on algorithms and does not require any human intervention.
While programmatic is automated it’s the data that makes it better. Data Science and Real-time bidding(RTB) are the key components required for programmatic advertising. Both the demand side and supply side depend on user data for a successful programmatic ad campaign. RTB is the auction process through which media is bought and sold between a publisher and advertiser through their supply and demand partners in real-time.
The whole process takes place in less than 200 milliseconds helping advertisers to reach their desired audiences on a publisher web page. Programmatic advertising with its extraordinary capabilities is helping the industry in the evolution of online display, video, native and mobile advertising.
Programmatic display and video advertising are leading the digital advertising industry, along with mobile advertising which is growing faster in the programmatic space. But with the growing challenges, programmatic advertising is helping to change the approach for the audiences.
Native advertising is a preferable channel these days as they are non-intrusive and cannot be easily blocked by an ad blocker tool. They appear within the content as a part of the web page. Viewers are not able to differentiate whether it’s an ad or part of the content. Advertisers report a higher conversion rate when they run ads that look and feel more similar to the web page environment.
In-app ads are also taking over the programmatic advertising market with mobile programmatic advertising leading the industry. Targeting people through apps has helped brands to display ads more efficiently with a scope of higher returns on their investments.
At the same time, mobile video advertising is believed to take on display as people these days prefer watching videos on their mobile as it is less distracting and convenient. The effectiveness of mobile video content is helping brands in enhancing their ad campaigns and to target their desired audience.
Benefits of programmatic
Programmatic advertising is helping to solve a lot of problems for advertisers who want to promote their business and have a greater reach. For publishers, it is making their websites yield more returns.
Globally, programmatic advertising has been remarkable in the online advertising industry. This year, programmatic will account for 63% of display ad spending with the major share going towards mobile advertising.
In India, programmatic advertising may still be a new term, but it has already helped many advertisers and publishers to reach out to the target audiences and maximize inventories. Digital advertising will account for 12.7 percent of all ad spending this year. This provides a lot of for programmatic advertising to grow in the country.
Future of programmatic
The ad buying system has become more efficient and cost effective since programmatic advertising took over the digital market. With better targeting, analytics and performance tracking both the advertisers and publishers are moving on and adopting programmatic mediums for online advertising. Programmatic not only helps the advertisers and publishers, but also programmatic companies like ours to grow.
With new trends in programmatic being introduced making it more intimidating and futuristic, it will change the way people connect for buying and selling media, making it more interactive. In India, it will inspire more and more people to opt-in and try out digital advertising in our country. Brands will soon start embracing programmatic and benefit from it and maximize demand for publisher inventories.
-by Ashish Shah, CEO & Founder, Vertoz Media Pvt. Ltd.