With each passing week, the roadblocks that have prevented brands from going programmatic are dissipating.
In the past, brands have hesitated about programmatic mostly because of concerns about its reach and accuracy of success metrics. For example, many marketers were worried about bombarding users with the same ads over and over again. And since most users consume and engage with media on different devices, there have also been concerns about click fraud and the quality of accurate product inventory in featured ads.
However, as more insights about programmatic come to light and methodologies for tracking consumers across devices mature, marketers are beginning to understand getting programmatic right is just a matter of doing their due diligence before deploying a campaign. If they are working with the right partners and they are using the right data to inform their programmatic, the returns can be outstanding — particularly for digital video and mobile advertising.
Here are “3 Reasons Programmatic Provides Better Digital Video & Mobile Ads:”
1) Programmatic gives digital video ads greater impact.
As Business Insider reports, mobile and video ads will account for $6.8 billion and $3.9 billion in real-time bidding ad spend, respectively, over the next three years. Coupled with the fact that people now consume media on mobile devices more than on any other platform, brands are sure to get the most out of that spend by merging programmatic audience buying and big data with their mobile advertising and digital video.
With video advertising, measurement and engagement metrics have evolved alongside the customizable features of the videos themselves. Essentially, brands can take a single creative asset and localize it into hundreds of thousands of versions so that a given retailer can show the most relevant, popular products available at each of its thousands of stores across the country. And when you add in the bonuses of overlays and social sharing features, the potential for engagement among high value customers becomes even greater.
2) Programmatic provides stronger performance and less budgetary waste.
Marketers will always require stronger performance and results with the least amount of spend possible. And making this happen can often come down to how well brands can identify, analyze the traits associated with and ultimately, target each and every customer segment. Why? Because each user segment has differing research and buying preferences, digital behaviors and types of interactions that influence purchases across all channels – from online to offline. That’s where programmatic steps in to ‘save the day,’ so to speak, and add precision while lowering costs.
For example, AdExchanger reported that Apple’s new iOS 7 install drove down app marketing costs by 12 percent last September. Video production costs also are decreasing, making ads less expensive to produce. The Media Rating Council’s recent decision concerning viewable impressions for video ads — requiring that 50 percent of pixels be in the viewable portion of an Internet browser for at least two continuous seconds — is also spurring advertisers to be as mindful as possible in minimizing budget excesses on ads that aren’t actually been seen and engaged with by users.
Some marketers are leveraging these improvements already. In its guide to digital video advertising, video ad exchange SpotXchange cites one example in which a luxury snowmobile brand targeted male sports enthusiasts aged 35 to 54 in snowy regions in the U.S. and Canada on premium publishers’ sites. The brand surpassed its targets for awareness and click-through rates so much that it increased its spend by 75 percent.
3) Rich programmatic audience data can propel more profitable brand interactions.
In addition to uncovering the varying consumer segments viewing ads, programmatic allows marketers to accurately and precisely track their digital behaviors, preferences and interactions as they click on and engage with those ads, as well as their past purchase history, demographic profiles and location.
Take the well-known electronics retailer Best Buy, for example. The big-box retailer can gather information on shoppers who have downloaded its app, viewed pre-roll ads on YouTube or even clicked on (and opened) a promoted post on Twitter. By taking any of these actions, Best Buy is able to glean important and insightful information about these shoppers’ product preferences as well as understand what devices they may be inclined to use for research, or even when they’re standing inside one of their retail store locations. It can then use this same information to retarget them with ads specifically tailored to their expressed interests.
Video ads, such as this one on Forbes’ website, can play on a Web page in desktop or mobile browsers.
The core KPI, of course, is sales — and mobile and video ads can improve this metric, particularly when paired together. “Driving foot traffic to a physical store is just one of the things mobile video has the power to accomplish,” Millennial Media’s Chief Revenue Officer Frank Weishaupt told us. “It can also be used to create brand awareness and drive higher social engagement.” And with reports from Videology showing that CPG brands have achieved 35 percent sales bumps from online and mobile video, it’s hard to discount the data power and value programmatic provides.
To put it simply, brands want premium ad placements in environments that fit best with their brand identity and mission, while also creating the types of interactions and engagements that make each customer segment feel informed and valued – be it a first-time visitor, a casual browser or cross-channel loyalist.
Programmatic answers this need and in a multitude of ways. It’s just up to the marketers to deploy it properly.