DorisRon
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Algorithmic buying turned into a gluten for advertising industry. Like gluten, "programmatic" became the vogue word, which today is often used by experts, but few people really understand what this concept means. In addition, only a few are aware of the importance of this technology and revolution it caused.
The term "programmatic" covers a wide range of technologies that have laid the foundation for the automation of such processes as buying, placing and optimization of advertising, completely negating the need in such "human" practices as telephone calls, faxes, and "three-martini lunches." Through programmatic technology an advertiser can buy ad inventory similarly easy as buy something at Amazon or bet on eBay.
Many are frightened with programmatic professional jargon, but as they say, programmable media buying is not so bad as it is painted.
WHAT IS PROGRAMMATIC?
In simple terms, programmatic is a mean of automation advertising buying. Many confuse the technology with real time bidding, but RTB is just one of the ways to buy ad inventory programmatically. In fact, programmatic buying is any purchase of an advertisement carried out by robots.
WHY DO EVERYONE TALK ABOUT IT?
Earlier to book a room at the hotel you had to call the concierge or pay a travel agent. And for the purchase of shares you had to personally come to the stock exchange. However, today we can do it not just remotely, but also in the automatic mode.
"What you are seeing is a fundamental shift, not only in the methods of display advertising buying, but also in improving the efficiency of interaction between the advertiser and the consumer," - said Brian Lesser, CEO of Xaxis.
IS IT EXPENSIVE?
Algorithmic buying allows to really save money. After automation, deals become more efficient, allowing you to eliminate the execution of complex, time-consuming and quite expensive operational tasks.
Ideally, automated technology should assume all the most difficult tasks related to data processing, and leave people what they do best - creativity.
"Programmatic is primarily intended to release a particular resource and allow people to be more involved in creativity", - said Todd Gordon, executive vice president in MagnaGlobal Interpublic.
WILL ALL ADVERTISING BE AUTOMATED?
Probably not. "I do not know if there is someone who will buy his entire advertising solely programmatically because content is very important for deep brand integration, and many ranking events can not be realized with the help of programmatic. However, in the future, the main part of ad buying will definitely be carried out in an automatic mode, "- said John Montgomery, COO of GroupM Group, which is a leader in investment management in the advertising.
MagnaGlobal promised that by 2017 about 50% of media advertising buying of their customers will be automated.
"When we set foot on the path of automation, the proportion of programmatic in our business was only 5%. So the progress is being made, "- says Todd Gordon.
Today, many advertisers are developing intracorporate programmatic strategies. Procter & Gamble, Mondelez, American Express, Kellogg's, Unilever, Kimberly-Clark, Netflix, Allstate Insurance and 1-800-Flowers - all of them have relied on programmatic.
IF PROGRAMMATIC BUYING IS SO COOL WHY DOESN'T IT DOMINATE?
This year, the US Association of National Advertisers conducted a survey of 153 marketers. The results showed that only 26% of them use the technology. The remaining 74% hesitate or are in need of additional knowledge about the technology. But even those who use programmatic tools for media advertising buying can not always boast of a clear understanding of what programmatic technology constitutes.
In addition, one of the main problems of algorithmic buying is that many people think that programmatic is synonymous with RTB. But, again, again, you should always remember that real-time bidding is only the first generation of what we now call the technology of programmable buying.
BUT WHAT ABOUT THE FRAUD?
Digital advertising has one huge problem - FRAUD, such as cheating, botnets, and a variety of types of click fraud. Some say that the level of fraud on the market of digital advertising is estimated in the limits of 10%, while others argue that it is much higher.
Most of the fraudsters work exactly in programmatic ecosystem, because there are certain problems with transparency in the market, allowing them to do their dirty work, falsify traffic and fraudulently obtain undeserved fees from advertisers.
Representatives of the digital advertising industry confront fraud with joint efforts and the main weapon in this difficult confrontation is transparency. And while the number of companies that operate in the field of online advertising and programmatic, is growing rapidly, we witness the formation of an ecosystem that simulates the stock market - the economy dictates the rules in which the price is formed under conditions of full and unconditional transparency.
ARE PREMIUM PUBLISHERS INTERESTED IN PROGRAMMATIC?
The answer is unequivocal - yes. But the process is moving at a speed of a lazy snail. The truth is that all publishers have good reasons to being very cautious. If buyers of advertising use programmatic solely as a mean to reduce the cost of buying, sellers of media ads will not have incentives to play this game.
Condé Nast magazine publishers combined departments engaged in programmatic and direct marketing, but even Alanna Gombert, who serves as a general manager of Catalyst Desk (a trading desk owned by Condé Nast), acknowledged that the company only lost by this. But more perspicacious publishers, including The New York Times, The Wall Street Journal and The Time, created their own ad exchanges to plunge headlong into the automation process.
Recently, programmatic direct buying, which allows to buy traffic by direct agreement with the publishers, but with all the advantages of selection of the target audience, which any RTB guarantees, got great popularity. In other words, market participants may continue to work directly, but with benefits of RTB buying. Programmatic direct buying guarantees ad placement on the sites that interest the advertisers, as well as provides the ability to automate all processes in an ad campaign.
Arthur C. Clarke once said that any sufficiently advanced technology is indistinguishable from magic. Well, despite all the pragmatism of the modern world, we have to believe in a miracle, which name is programmatic.
The term "programmatic" covers a wide range of technologies that have laid the foundation for the automation of such processes as buying, placing and optimization of advertising, completely negating the need in such "human" practices as telephone calls, faxes, and "three-martini lunches." Through programmatic technology an advertiser can buy ad inventory similarly easy as buy something at Amazon or bet on eBay.
Many are frightened with programmatic professional jargon, but as they say, programmable media buying is not so bad as it is painted.
WHAT IS PROGRAMMATIC?
In simple terms, programmatic is a mean of automation advertising buying. Many confuse the technology with real time bidding, but RTB is just one of the ways to buy ad inventory programmatically. In fact, programmatic buying is any purchase of an advertisement carried out by robots.
WHY DO EVERYONE TALK ABOUT IT?
Earlier to book a room at the hotel you had to call the concierge or pay a travel agent. And for the purchase of shares you had to personally come to the stock exchange. However, today we can do it not just remotely, but also in the automatic mode.
"What you are seeing is a fundamental shift, not only in the methods of display advertising buying, but also in improving the efficiency of interaction between the advertiser and the consumer," - said Brian Lesser, CEO of Xaxis.
IS IT EXPENSIVE?
Algorithmic buying allows to really save money. After automation, deals become more efficient, allowing you to eliminate the execution of complex, time-consuming and quite expensive operational tasks.
Ideally, automated technology should assume all the most difficult tasks related to data processing, and leave people what they do best - creativity.
"Programmatic is primarily intended to release a particular resource and allow people to be more involved in creativity", - said Todd Gordon, executive vice president in MagnaGlobal Interpublic.
WILL ALL ADVERTISING BE AUTOMATED?
Probably not. "I do not know if there is someone who will buy his entire advertising solely programmatically because content is very important for deep brand integration, and many ranking events can not be realized with the help of programmatic. However, in the future, the main part of ad buying will definitely be carried out in an automatic mode, "- said John Montgomery, COO of GroupM Group, which is a leader in investment management in the advertising.
MagnaGlobal promised that by 2017 about 50% of media advertising buying of their customers will be automated.
"When we set foot on the path of automation, the proportion of programmatic in our business was only 5%. So the progress is being made, "- says Todd Gordon.
Today, many advertisers are developing intracorporate programmatic strategies. Procter & Gamble, Mondelez, American Express, Kellogg's, Unilever, Kimberly-Clark, Netflix, Allstate Insurance and 1-800-Flowers - all of them have relied on programmatic.
IF PROGRAMMATIC BUYING IS SO COOL WHY DOESN'T IT DOMINATE?
This year, the US Association of National Advertisers conducted a survey of 153 marketers. The results showed that only 26% of them use the technology. The remaining 74% hesitate or are in need of additional knowledge about the technology. But even those who use programmatic tools for media advertising buying can not always boast of a clear understanding of what programmatic technology constitutes.
In addition, one of the main problems of algorithmic buying is that many people think that programmatic is synonymous with RTB. But, again, again, you should always remember that real-time bidding is only the first generation of what we now call the technology of programmable buying.
BUT WHAT ABOUT THE FRAUD?
Digital advertising has one huge problem - FRAUD, such as cheating, botnets, and a variety of types of click fraud. Some say that the level of fraud on the market of digital advertising is estimated in the limits of 10%, while others argue that it is much higher.
Most of the fraudsters work exactly in programmatic ecosystem, because there are certain problems with transparency in the market, allowing them to do their dirty work, falsify traffic and fraudulently obtain undeserved fees from advertisers.
Representatives of the digital advertising industry confront fraud with joint efforts and the main weapon in this difficult confrontation is transparency. And while the number of companies that operate in the field of online advertising and programmatic, is growing rapidly, we witness the formation of an ecosystem that simulates the stock market - the economy dictates the rules in which the price is formed under conditions of full and unconditional transparency.
ARE PREMIUM PUBLISHERS INTERESTED IN PROGRAMMATIC?
The answer is unequivocal - yes. But the process is moving at a speed of a lazy snail. The truth is that all publishers have good reasons to being very cautious. If buyers of advertising use programmatic solely as a mean to reduce the cost of buying, sellers of media ads will not have incentives to play this game.
Condé Nast magazine publishers combined departments engaged in programmatic and direct marketing, but even Alanna Gombert, who serves as a general manager of Catalyst Desk (a trading desk owned by Condé Nast), acknowledged that the company only lost by this. But more perspicacious publishers, including The New York Times, The Wall Street Journal and The Time, created their own ad exchanges to plunge headlong into the automation process.
Recently, programmatic direct buying, which allows to buy traffic by direct agreement with the publishers, but with all the advantages of selection of the target audience, which any RTB guarantees, got great popularity. In other words, market participants may continue to work directly, but with benefits of RTB buying. Programmatic direct buying guarantees ad placement on the sites that interest the advertisers, as well as provides the ability to automate all processes in an ad campaign.
Arthur C. Clarke once said that any sufficiently advanced technology is indistinguishable from magic. Well, despite all the pragmatism of the modern world, we have to believe in a miracle, which name is programmatic.