Programmatic strategy, programmatic marketing, programmatic advertising... These phrases might all sound like the latest marketing buzzwords that will soon be forgotten, but like AdWords and SEO – programmatic strategy is one digital disrupter that’s here to stay. In fact, the Internet Advertising Bureau UK estimates that by 2018, 80% of all digital ad spend in the UK will be programmatic. With so many potential competitors using this automated bidding system to target consumers, including a programmatic strategy in your marketing mix has become essential. But what exactly is programmatic strategy?
Programmatic strategy automates the buying and selling of digital ad space through a real-time bidding system by targeting your ideal customer or audience in the right place, at the right time. Not sure what we mean? Here’s an example:
If you’re in the business of selling luxury SUVs, you probably have a good idea of the type of person you’re trying to target. You know your ideal customer is a high-earning executive living in an urbanised area, with a university education and is currently in the market for a new luxury SUV. You could buy ad space manually by advertising on a business or SUV website, but that would require spending your budget advertising to people who are either not in the market for a new vehicle or are interested in off-road SUVs rather than luxury SUVs.
This method is not an efficient use of your budget or your time. Programmatic marketing, on the other hand, allows you to automatically target individuals at the right time (within a week of browsing for similar vehicles for sale), and in the right place (when the software determines your ad has the best chance at a click-through). Through precision targeting, including programmatic in your marketing mix maximises your budget and your KPIs.
All programmatic strategy takes is three ingredients: big data, machine learning, and your marketing expertise. These days, we spend as much of our time online as we do off. We each leave an anonymous footprint online that’s made up of hundreds of data points. This means that programmatic software has millions of data points, or “big data”, to observe – allowing the software to learn more about your target audience.
Just like how our phones predictive text becomes more accurate the more we use it because it receives more data points, programmatic strategy uses machine learning to predict online behaviours by drawing on big data. Using your marketing and brand know-how, you tell the software what type of person you want to target and what your ideal outcome or KPI is, and the programmatic software does the rest. The programmatic strategy you have in place will automatically bid on digital advertising space in real time, so that your ads are displayed to the right person, in the right place, and at the right time.
Programmatic strategy is essential to your brand’s marketing mix because it improves every aspect of your digital strategy from maximising your budget to identifying a new potential target audience.
Here are just some ways that programmatic strategy can improve your audience:
To read more about how programmatic strategy can benefit your brand, check out Think with Google.