5 Ways Programmatic Advertising Will Change the Future of Marketing

Posted by | June 29, 2015 | Programmatic Advertsing | No Comments
Programmatic Will Change The Future Of Marketing

Since its emergence in 2007, programmatic advertising has already revolutionised the trading of display and video inventory.  It enables marketers to reach consumers based on a target demographic, rather than websites directly relevant to their products and services.  This means marketers can engage with potential clients across multiple platforms, whether via desktop, tablet, mobile or even TV.  The approach has also vastly increased the number of variables available for analysis when purchasing digital inventory, allowing a much more precise understanding of audience segments.

These revolutionary changes have occurred ‘with only 20% of digital advertising already gone programmatic’.  The rise in spending on programmatic will see it account for more than half of all digital advertising transactions by 2017.  There’s no doubt that programmatic has already made a huge impact, however, it doesn’t stop here.  Let’s take a look at 5 ways programmatic advertising will change the future of marketing:

  1. Financial-Style Markets

The rise of programmatic marketed has resulted in a decline in traditional buying methods.  In the past, marketers would scrutinise 10 to 20 buying opportunities per week, whereas ‘automated buyers of online advertising often analyse millions of ad buying opportunities a second’.  Each of these impressions is qualified against up to 100 variables, and this deeper level of analysis has led to a commoditisation of inventory.  Hence, the move towards marketplaces that trade in a way similar to financial markets is inevitable.

  1. Increased Display Channels

Programmatic has proved itself as a versatile advertising vehicle that has grown from a method for trading remnant digital inventory to one that serves premium inventory across a multitude of devices.  Marketers can currently reach consumers on desktops, tablets and mobiles through programmatic, and although in its infancy, its scope also extends to TV.  This diversity of platforms will continue to grow, with every advertising channel poised to become an addressable medium.  As well as TV, programmatic is extending to out-of-home displays and print.  Marketers can expect programmatic to encompass other media, such as radio, in the near future as it continues to bridge the gap between online and offline channels.

  1. Mar-Tech

There has been a virtual collision between Mar-Tech, short for Marketing Technology, and Ad-Tech.  However, the omni-channel benefits of Mar-Tech are seen by many to outreach the branding and traffic orientated engagement of ad-tech.  Mar-tech is the technology that underpins programmatic advertising, and as the software continues to develop, it will be possible to manage ROMI with a new level of rigor.  It has been cited that what is impressive is the degree to which the digital advertising industry has only dipped its toe in the automation sea.  As Mar-Tech evolves, marketers can expect programmatic to be brought to other areas of the media process and should look out for new technologies such as programmatic analytics and programmatic attribution.

  1. Marriage of Creativity and Science

A hugely exciting way that programmatic will change the future of marketing is through its marriage of creativity and science.  Through the evolution of Mar-Tech, ‘CMOs and CFOs will be united more closely than ever’.  The technology behind programmatic will create a new marketing model that blends the artistic and the scientific, joining together the power of human creativity with split-second precision.

  1. Emphasis on Message Customisation

A further development that will stem from Mar-Tech is an emphasis on message customisation.  As programmatic software allows deeper campaign insights than ever before, marketers are now able to customise messages to their consumers.  Because ‘the mechanics of buying and selling inventory become automated and commoditised, more emphasis can be placed on making the messages themselves more personal, targeted and effective’.  This will mean ads can increasingly be adapted in real time to improve relevance to each individual, enabling marketers to target members of the same buying segment that have different buying motivations.

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