The expansion of programmatic advertising into the TV, out-of-home and other channels will only increase the need for reliable, real-time, third-party data.
It’s only natural that programmatic advertising has become the driving force behind digital display ads and is now spreading rapidly to out-of-home, television and other channels.
After all, the ability to put your message in front of a person based on what they are doing that moment has long been the Holy Grail of marketing. We may not be there yet, but we are dramatically closer than five years ago and getting closer every day thanks to the MarTech boom.
Not too long ago, online display advertising remained a labor-intensive process that required a request for proposal (RFP), negotiations back and forth between representatives, and manual insertion orders. Programmatic advertising simplifies the process through an automated process that enables computers to use data to decide which ads to buy and how much to pay for them based on real-time data signals generated by millions of connected devices. Generally, brands or their representatives use what is called a demand-side platform (DSP) to choose which ad impressions to buy and how much they should pay, and publishers use a supply-side platform (SSP) to offer ad space.
Programmatic technology was developed as a way for publishers to sell their limitless online ad space but has rapidly expanded its share of ad spending as buyers and sellers recognized the value in such an efficient and productive system.
Today, approximately four out of five digital display advertising dollars are spent on programmatic advertising. By 2020, it’s forecast that 86.3 percent of digital display ads will be served programmatically. That includes everything from online display ads, to messages on electronic signs and billboards, audible search results and video ads.
In some way, programmatic advertising is just getting started, according to Digilant, which recently published a Top 10 Programmatic Media Buying Trends infographic for 2019. Below we share their list with some annotations of our own.
Voice Marketing: The rise of smart speakers has created a new frontier for relaying brand messages. With over 56 million smart speakers sold in 2018, advertisers who are interested in being the front runner of this new medium are already re-defining their digital strategy.
Programmatic Television: With more people viewing television via smartphones, laptops and smart TVs, programmatic technology is poised to transform TV advertising. According to eMarketer, U.S. advertisers are on track to spend $3.8 million on programmatic television ads in 2019 – a number that will continue to rise as agencies and brands become more acquainted with the process and familiar with the results. Marketers can take advantage of this valuable insight today through BDEX, which has data on the viewing habits of tens of millions of consumers.
Audio Advertising: Weekly podcast listeners listen to podcasts for six hours a week on average and comprise 17 percent of the U.S. population, according to MusicOoomph.com. With 100 percent deterministic cross-device matching from BDEX, you can capture what your target customers are listening to add resolution to your customer profiles and or target them via programmatic advertising.
Social Media Shopping: Making purchases directly through Instagram and Snapchat is a growing trend. Twenty percent of Snapchat users are more likely to make purchases after engaging with a shoppable ad seen on the app.
Digital Out of Home Ads: Electronic billboards, signs, and display boards have been steadily increasing in popularity due in part to the ease of automated ad buys. Targeted Digital Out of Home advertising can help drive ticket sales and store visits, increase app downloads and online engagement, and raise awareness of products, events, and services.
Artificial Intelligence in Media Buying: Using algorithms derived from data and online behavior can help optimize your media buying strategy. Four in 10 advertisers are currently utilizing AI to help target prospective consumers more effectively in a way that increases their return on investment.
Fewer Platforms: Agencies have been consolidating media and DSP partners for ease of use and reduction of the ad tech tax. Using programmatic advertising streamlines media buys in a way that benefits brands and ad sellers alike.
Cost Transparency: Having a full understanding of the cost breakdown is important to ad buyers. Agencies are pushing for more transparency when it comes to fees, which makes it easier to evaluate the risks and rewards of committing to an ad buy.
Adding In-House Talent: More CMOs plans to bring programmatic skills in-house – a sure sign they will be upping their spend.
More In-House Agencies: According to Forrester’s “In-House Agency Forum” survey, more brands will be bringing their media in-house, with 64 percent of respondents stating that they will be using in-house agencies in 2019.
The role of third-party data
Marketers that don’t commit to programmatic advertising risk falling further and further behind a trend that is destined to enhance personalization, improve the customer’s brand experience and increase marketing ROI. Yet many are still resisting the technology because of bad experiences they have had with third-party data and/or because they lack the substantial in-house resources needed to vet, cross reference and use it. These concerns are exactly what inspired the creation of the BDEX Data Exchange Platform, or BDEX DXP.
Thanks to more than 100 partners, BDEX analysts can search more than 900 billion data points on tens of millions of U.S. consumers across 19 categories of shoppers and more than 5,000 other categories to help marketers fine-tune their real-time marketing. The platform has been designed from the ground up to save marketers time and money while supercharging their campaigns.
Dozens of global brands, retailers and agencies have been using third-party data vetted, cross-referenced and categorized by BDEX to power their programmatic advertising for years.
Whether you are looking for help launching your first programmatic campaign or a more reliable source of real-time data for your next one, you owe it to yourself to contact BDEX today to see how we can take your marketing to the next level.