Programmatic Advertising and The Rapid Transformations of 2016
The programmatic industry is evolving fast, so how exactly can brands keep up the pace with new platforms for programmatic display, budding technology to purchase and place adverts, and the changing roles of agencies? In this blog, we will reveal the most inscrutable topics in programmatic and explore the upcoming programmatic trends, the technology routing these advances, and the brands showcasing them.
With all the rapid changes happening in the digital advertising space, especially around the exploding growth of programmatic advertising, we need to understand the course of it. Demystify the buzzwords to really understand the programmatic landscape. Develop more advanced programmatic strategies to build a personalized customer journey. Network with like-minded brand-side marketers, agencies and technology providers.
Changes That Took Place In The Programmatic World In The Year 2016
Programmatic Helped In Targeting The Right Person At The Right Moment:
There are various types of customer attributes programmatic can consider when displaying your ads. List of attributes includes behavior, interests, demographics, actions taken on your site, earlier purchase activity. Cross-channel advertising campaigns have always been difficult to execute due the sporadic of advertising channels. In the year 2016, we have seen the rise of programmatic not only on the desktop but also on mobile and TV. Advertisers found that cross-channel programmatic campaigns will be more successful in 2017, as they are planning to increase their budgets for this area.
Header Bidding Became More Accessible:
Header bidding is one of the most advanced and technically sophisticated examples of programmatic advertising. Publishers are gradually dumping the traditional waterfall setup for header bidding. Header bidding still faces a lot of challenges, mostly concerning usability. However, in the year 2016, it overtook these as advertisers, as well as publishers and made them realize the benefits of this technology. New reports state that 82% of marketers are planning to increase the usage of the data generated from their customers and brand properties. Publishers using header bidding experience a significant knock in revenue; on average publishers, can predict to earn 10% to 30% more income from header bidding.
Increased Conversions With Retargeting:
In the year 2016, retargeting in social advertising was the best practices. As per our observation, the average rate of shopping cart abandonment in 2015 was 68%. This means that online retailers have been watching nearly 7 out of 10 possible customers get close to completing a purchase cycle. Retargeting selections like Dynamic Product Ads (DPAs), Website Custom Audiences and Facebook Exchange help retailers do more than winning back those drifting customers. It can also gear up discoveries of similar products, cross-sell products or increase buying frequency among your top customers.
Everybody Thought Outside The “Banner Ad” Box:
Currently, banner ads are the prevalent ad choice within programmatic advertising. Reports state that by the end of next year, banner ads will start to losing their supreme status. The video, rich media ads and sponsorships, which are still sold through traditional sales methods, will become feasible options. E-Marketers predicted that programmatic video ads will account for more than 40 percent of digital video ad spending in the year 2016. It is expected these innovative options started out in the programmatic direct pitch, where online spots are purchased in advance for a specific price along with the auction process of real-time bidding.
Programmatic Spending Was Remarkable:
An upsurge in spending will also mean an increase in the competition. Programmatic providers must deliver a better experience for both advertisers and publishers to overcome many of the challenges that were vital to the conversations and sales in 2015. One of the vital arguments is that the programmatic advertising is complex. Therefore, making programmatic advertising less complicated for advertisers may be the key to help the marketers to increase the programmatic spend further. However, with a continually expanding ad tech space which includes advanced programmatic techniques, this won’t be easy. For example, in 2016, programmatic spending on video ads crossed 5.5 billion dollars, accounting for 56% of all digital video ad spending. Investment in programmatic TV ads is projected to experience incredible growth in the next few years growing from 1% of total TV ad spend in 2016 to 6% in the year 2018.
Programmatic has redefined the way we buy display ads today, but advertisers shouldn’t be muddled by it or feel that it’s too tough to implement in their accounts. Think of programmatic as having your personal assistant to help and assist you automatically for your tasks so that you can focus on the imperative things, like strategy and reporting. In 2017, we will witness more trends emerge, many of these focusing on making the programmatic platform better for marketers and their viewers.
However, for marketers and advertisers, it is significant not to get dazed, however, focus on their overall goals. They need to keep looking out for innovative technologies that can help them to reach out for correct audiences, rather than letting technology command the way they work. A few continuing trends from 2016 bleeding into 2017 and looks like an exciting year ahead for all of us in the programmatic world.
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