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The Importance of Programmatic Marketing

There is a large shift in media right now, where more and more marketers are taking advantage of programmatic marketing (automated marketing based on a computer algorithm). Starting with ad exchanges, there has been a significant rise in marketers using DSPs to purchase RTB inventory. In tandem with this trend, there has also been a rise in programmatic targeting, programmatic creative and programmatic content.

Programmatic Targeting

DSPs have already been using programmatic targeting technology to score, segment and bid on impressions for advertisers within the exchanges. Instead of relying on what an advertiser thinks its target audience is, the programmatic targeting technology follows conversions to optimize towards the real target audience, building groups of profiled users along the way. This technology is continually adapting and evolving and is an important shift in the way brands interact with consumers. It allows for better insight and customization at a mass scale.

Programmatic Creative

Instead of building one or two creative concepts, marketers are now using dynamic creative to run hundreds of variations. The creative variation served is now dependent upon the programmatic targeting. If an impression is designated as a person A50+, who lives in Massachusetts and is showing behavioral signs that they are getting ready for retirement, an insurance company will now serve a targeted message about ways to best use their retirement savings based on the cost of living in Massachusetts.

Programmatic Content

Programmatic content is a new way for publishers to dynamically adjust the content of a site based on the individual visiting the page. E-commerce sites are already taking advantage of this by dynamically changing the prices and products on the page based on the interest, income and purchase intent data that has been gleaned on that individual. Like programmatic targeting and creative, this too allows brands more customizable communication with its consumers at scale.

So why is this all important?

Programmatic marketing allows for several important things:

  1. Customizable interaction at mass scale
  2. Automated purchasing of media and optimization changes
  3. Better insight into a brand’s target audience
  4. Reach across a very fragmented digital media environment

What do you think of programmatic marketing? Do you think it will help or hurt your business?

Note: this blog post is based off of the following MediaPost article http://www.mediapost.com/publications/article/189212/the-rise-of-programmatic-marketing.html#axzz2ErfZ7DBN

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