Programmatic has undoubtedly made a huge impact on the digital marketing world, and it is set to become an intrinsic methodology for mobile programmatic advertising. There are many benefits to be had by purchasing mobile inventory programmatically, but as with all new things, it’s going to take a little while to become the mainstream.
Early Days of Maturation
According to a recent survey of 200 brand marketing executives, while 40 per cent agreed that mobile programmatic would help them reach their target audience, only 27% are purchasing this way. Of those already doing so, 87 per cent were either satisfied or fairly satisfied with performance.
Part of the reason programmatic buying is in the early days of maturation, still, for mobile advertising is that mobile is vastly different from the Web and other core marketing channels. For example, smartphone users check their phones up to 150 times per day, but often for seconds at a time. This means that marketers have to contend with frequent but short user attention, and with no “one-size-fits-all” technological solution. In response to the challenges of mobile display advertising, programmatic technology and data will converge to provide unparalleled insights and campaign optimisations on a real-time basis.
The Mobile Revolution
Smartphone adoption is ensuring that a powerful computer is within arm’s reach of billions of worldwide users. An eMarketer forecast predicted that out of 4.55 billion mobile phone users in 2014, 1.75 billion of those would be smartphone users. Looking to future adoption, the researchers anticipate 2 billion smartphone users by 2016, and over half of mobile phone users to have smartphones by 2018. These consumers have instant information access as well as easy international communication, and the devices they use collect a wealth of valuable data about their psychographic profiles. These traits are what makes mobile such a significant marketing channel, and one for which programmatic is a most fitting approach.
The advent of smartphones within mobile is itself revolutionary, and as such it’s going to be an exhilarating ride as it continues to converge with programmatic advertising. Let’s take a look at the 5 leading benefits of programmatic for mobile advertising.
1. Keeping Pace with Change
As consumers continue to move to mobile en masse, marketers would be well advised to keep pace. Indeed, change in consumer behaviour does not wait for the advertising community to catch up. Users are distributing their attention across multiple screens, and campaigns that fail to address this will miss out. There simply has to be a strong mobile element in campaigns to achieve success. And success is surely the primary benefit any marketer seeks.
2. Increased ROI
Because of the nature of programmatic, marketers pay a fair price for each impression. Advertisers set their own parameters to ensure greater ROI with smaller investments. As one of the primary concerns in mobile display advertising is that there are too many ways to source or buy inventory, marketers can team up with an aggregator like PRGRMTK, who will ensure that ROI is optimised by continuously monitoring campaigns and focusing only on placements driving results.
3. Deeper User Experience
Hand in hand with smartphone adoption is the growth of the app economy. With hundreds of thousands of apps now available, advertisers have the perfect opportunity to reach an engaged audience. The app market enables marketers to advertise through hosted apps, generally via in-app banners or videos. This type of inventory reaches an engaged audience that is more likely to respond due to the deeper user experience that apps provide.
4. Enhanced Consumer Insights
Programmatic is already well known for the rich data that it provides. Because users tend to have their mobile devices with them wherever they go, the consumer insights that can be gained through programmatic mobile campaigns are even more valuable than those obtained from static devices. Marketers can access masses of information relating to users’ demographics, locations and times of interactions, and programmatic technology is constantly evolving to improve the quality of this data. Consumer insights contribute to improved targeting and re-targeting, maximised user retention and increased ROI.
5. Transparent Reporting
With programmatic, marketers benefit from clear reporting on budget allocation and campaign performance. With the efficiencies that automation provides, money is spent directly on inventory rather than administration. The reporting that it provides details this – and much more – clearly demonstrating the value that programmatic mobile advertising brings.