Traditionally, the sell and buy of display advertisements on the internet was done the same way as it is done for print, television, and other mediums that are rather old-school. Interactions and negotiations between the advertiser and sales person were required in the same manner even for online display advertising.
Programmatic advertising, however, is a new concept that has changed the way online display advertising works, essentially by eliminating the need for two humans to speak with each on the subject. Instead, it utilizes artificial intelligence and real-time bidding for the placement of ads, regardless of whether it is an online display, social media marketing, or mobile and video campaigns. Therefore, the ability of an individual to automate the decision-making regarding the purchase of ad space online, by targeting a specific audience, is known as his programmatic advertising skills.
Why is programmatic advertising important
According to eMarketer, the overall spending of organizations on programmatic digital display advertising has increased from $10B in 2014 to $22B in 2016. This jump in spending reflects the importance of programmatic advertising for organizations. Following are some reasons for its growing popularity:
- It allows for real-time flexibility. In case of direct buy, you are bound to let the ad run its course regardless of the mediocre performance you see. Once a purchase is made, no adjustments are permitted. Programmatic advertising, however, allows for real-time changes based on whatever impression you get of the current performance.
- It is cost-efficient. The incredible scalability of programmatic advertising, at volumes that could never be reached by direct buy, is the real reason behind its growing significance. It gives you the power to reach an enormous amount of people all across the internet, regardless of their physical presence.
How to improve programmatic advertising skills
Knowing the benefits and importance of programmatic advertising and hearing all about its success stories, it is understandable if one considers starting his own programmatic campaign. However, before beginning, the programmatic advertising skills must be refined. Here are some tips that can help in the matter:
- Know your audience. You must begin by defining your target audience by parameters backed with data. Sometimes, pinpointing your potential customers may necessarily require additional details, besides the demographic parameters already being considered. For instance, geo-targeting is considered a powerful tool by many people involved in programmatic advertising. As compared to one broad audience, such highly targeted audiences are likely to require multiple strategies and campaigns but the difference they bring to your performance shall be magnificent.
- Adopt varying strategies for different times of the day. The digital space is a true reflection of our dynamic lives. Just as we are more busy at one time of the day as compared to another, internet behavior is also more concentrated at a certain time period compared to others hours of the day. The hours with highest traffic would mean higher bids and greater competition. For improving one’s programmatic advertising skills, it is highly advisable to take advantage of these particularities and adjust one’s strategies accordingly.
- Consider recency of last visit. Whatever retargeting strategy or campaign you wish to go ahead with, considering the time lapse, since your potential customer last visited your website, is extremely crucial in order to obtain the desired results. You cannot recapture the interest of someone who paid attention to your website 2 hours ago in the same manner as someone who visited it 6 hours ago. You must differentiate between such targets and develop separate strategies for each.