Continuing along the theme of automated marketing, I wanted to discuss programmatic advertising as it has changed the face of online advertising. As a fairly new concept, I wanted to debunk a few myths that are already surfacing about it.
“Programmatic” ad buying is like using machines to buy ads. Software purchases digital advertising, as opposed to the traditional process that involves human negotiations and manual insertion orders.
Myth 1: Robots are replacing people
Yes and no. Technology is being used to replace some of the more menial tasks that humans have historically had to deal with, like sending insertion orders to publishers and dealing with ad tags, but they’re still required to optimize campaigns and to plan strategies. Programmatic technology will probably mean there are fewer ad buyers in the world, but it could also allow both marketers and sellers to spend more of their time planning sophisticated and customized campaigns instead of getting bogged down in bureaucracy.
Myth 2: Programmatic advertising takes humans out of the buying equation
While it is true that digital ads were bought and sold by ad buyers and salespeople and that programmatic advertising technology has replaced them in this role, the human element in programmatic advertising is in the strategy. Think of it like this – the machines are the brawn and humans are the brains.
Myth 3: Programmatic advertising is the same as real-time bidding
Real-time bidding (RTB) is a type of programmatic advertising but not all programmatic advertising uses RTB. Programmatic advertising refers to the purchase of ads through real-time auctions, but programmatic software also allows advertisers to buy guaranteed ad impressions in advance from specific publisher sites.
Programmatic ad buying is definitely on the rise and some agencies are eager to buy as much media as possible through programmatic channels. Some major brands have also dedicated programmatic ad buying to their in-house teams.
Although it is still mainly online ads that are traded programmatically, it is clear that on the horizon and coming to an agency near you is the opportunity to buy “traditional” media this way, including TV spots and out-of-home ads!
Do you think programmatic advertising is something only for large brands and agencies? Are you currently using programmatic advertising for your company? After reading this blog, will you be considering this for your business? I look forward to your comments.