Programmatic Ad Buying and Native Advertising

First of all what the hell is ‘Programmatic Ad Buying’? At the root, programmatic takes multiple data points and make decisions. The data is purchased in an auction similar to how you would purchase a Google search ad. According to Adweek,

“It’s buying specific audiences using lots of data to figure out the right ad, the right person, the right time. It’s the idea that machines will simply handle all of the process involved in buying media—the insertion orders, the paperwork, the trafficking, the spreadsheets”.

Programmatic takes out the human error by using software. No more digital paperwork, combining spreadsheet or trading PDF order documents. Programmatic is all about automation which allows a business to respond in real-time. The technology relies on having access to rich customer data. For example, say you want your advertisement to target women 20-35 years old interest in beauty products. So you decided to display your ad on Allure.com because the site has a similar demographic. However, how do you know you are targeting the right people who will actually buy your beauty product? Programmatic takes the guess work out of the equations. Instead of solely relying on demographic information, programmatic uses human behavior. The automation is driven by algorithms using the data to generate relevant responses. So unlike AdWords  your ad reliant on keywords and phrases, programmatic utilizes technical programs to set up the parameters of your campaign, and then uses algorithms to execute the campaign. There is no more guessing where to place your ad, the program simply does it for you.

In order to gain rich customer knowledge, advertisers purchase 1st and 3rd party cookies. However, with a new world being privacy-obsessed, cookies are becoming endangered making  this a potential obstacle in the world of programmatic buying.  Another current limitation of programmatic is how to figure out the multi-device landscape. People are not just using their phone or just their computer or just their tablet. People have many devices and thus have many information trails.

So how big is the programmatic game really getting? Well eMarketer predicts, “programmatic ad spending would leap to $32.6 billion by 2017, with spending in the US increasing to $16.9 billion”. Large brands and business can use programmatic buying as an equalizer. Targeting the right audience in real-time is a highly competitive quality to have.  Take the largest cereal brand in the world, Kellogg, as success example or using programmatic buying. Kellogg’s goal was to drive awareness and persuasions towards the brand. After embracing programmatic buying, Kellogg’s advertisement view-ability rate increased to more than 70 percent and now is two to three time better at ensuring that its impressions go directly to targeted consumers. Check out Kellogg’s Case Study for further details.

In simple terms, programmatic ad buying makes the lives of advertisers easier. Adweek sums it up perfectly, “It makes advertising smarter”.

Another form of paid targeted advertising is called Native advertising. Native advertising is i short integrating  an advertising message directly into editorial content. The point is to make these ad look and feel like part of the editorial content.

Have you ever seen Netflix hit show Orange is the New Black? To create buzz around the season two premiere of Orange is the New Black, a native ad was placed in the New York Times. The New York Times wrote a story called, Women Inmates: Why the Male Model Doesn’t Work. Look at the advertisement / story photo below.

Screen Shot 2015-05-20 at 5.33.24 PM

The content in the  Women Inmates: Why the Male Model Doesn’t Work is real and does feature real women who have been in prison. But it also is an advertising moment for Netflix.

Native advertising can take many shapes and forms. Consider a native ad on a podcast. Since podcast are story like in nature, listeners attention is high and the ad can be written right into the story line. Blog post are also a great away to get consumers attention. Professional bloggers can write about their personal experience about a product, brand service in there blog. People love to listen to other people, not just what the brand is saying. In order to keep this ethical, bloggers must write this is sponsored post to indicate they are being paid by the brand.

Programmatic buying and Native Advertising are the new trend in advertising. Though many people are skeptical about there presence in the future, I believe they will continue to grow and expand.

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Programmatic Ad Buying and Native Advertising

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