Programmatic Advertising Continues Growth
The market dominance of Programmatic Advertising has been rapidly growing over the past couple of years and appears to be on the verge of critical mass. Programmatic ads automate where and how the ads are placed, which eliminates human error and maximizes ROI for the advertiser. Brands are increasingly bullish on programmatic. In the CPG category alone, 63 percent of digital display ads, representing $2 billion, will be purchased programmatically this year, according to eMarketer; which projects that programmatic buying will go from a $15 billion business this year to $27 billion in 2017.
Efficiency is key here, and for many companies programmatic advertising buying has proved to be the best option. Ad buyers can use programmatic buying to fan ads across the web and then, mid-campaign, evaluate what’s working best — which geographies, times of day, audience segments, publishers — to narrow their target accordingly, so they’re paying only for highly effective ads. This is a radical change from traditional ad buying, where a buyer agrees to run a certain number of ads with a publisher and is locked in to the contract. The ability to control and customize is bringing programmatic ads to the center of everyone’s attention – so much so that the overall spend on programmatic buying is expected to roughly double 2014’s spend of $9.33 billion this year. A large portion of this is expected to come during the upcoming holiday season.
So is this automated system going to replace humans in the ad world? Not exactly. While this programmatic system is taking some of the human element out of advertising, right now everyone’s job is safe. The programmatic ads will take much of the lower, menial, and time consuming work out of creating the ads, such as ad tagging and insertion orders. People still need to optimize and plan strategies for the new content, something the robots are so far unable to do. Overall programmatic ads seem to be beneficial for both the advertiser and consumer. The advertiser can target exactly who they want, where they want, this is cutting cost down and improving ROI. On the consumers end it is cutting out non relevant ads and information for a more customized personal feel. Instead of bogging the consumer down with tons of useless content, they are only seeing something they are interested in. For the buyer and consumer programmatic seems like a win/win.