Back to the boring stuff – A brief introduction to how Tech is changing the Media market – by Thiago Ricardo Da Silva

Posted on November 17, 2014

Context, that is how traditional digital media buying engaged with prospects. Advertisers pay a premium publisher for relevance but that relevance comes with waste in form of users who don’t match on the advertisers’ target. But what if there is a way to advertisers to reach just the target audience no matter where they may be? Traditionally, brands have been achieving the three R’s — the right message, to the right person, at the right time – using generic audience segments and disconnected systems that make it difficult to deliver insight-driven campaigns across channels. Nowadays with programmatic buying technologies this scenario is changing. But what is programmatic? For marketers and agencies, programmatic buying is a way to make campaigns more effective at a greater scale, it’s the using of technology to facilitate and automated media buying and applying data to target users based on where they are, on specific site or across the web. This video made by Lab UK, launched in 2012, is still the best way to understand the first level of the programmatic ecosystem and how the players are linked each other: http://www.youtube.com/watch?v=1C0n_9DOlwE The positive effects of programmatic Media use A survey by Advertising Age and analyzed by DoubleClick in his article “Programmatic Revolution” shows how marketers and agencies are seeing the effects of the Programmatic Media on their business. An interesting point shown in this article was about the improvement of the click-through rates – which is still one measure of effectiveness: Almost half of the respondents (44.3%) believe that click-through rates have been positively affected by programmatic, and slightly more than half think this rise will continue in the future (51.5%). Other interesting thing that the Ad Age survey shows is the factors influencing programmatic buying decisions.  According to the respondents, segmentation most important of them,  by using programmatic technology to buy online media they are able to get a fine-grained segmentation and targeting, improving the relevance and performance of campaigns. Following target options with 76.5%, there are reporting/insights (73.3%) and performance/ROI (71.9%). Programmatic has gained significant traction and shows strong momentum but is still representing a fraction of the entire advertising environment.  With the growth of this model, several trends will shape the way programmatic is viewed. Programmatic is getting a fast start with many newer marketers with few legacy investments. At the same time, large advertisers are long time consumers of sophisticated programmatic strategies, making it clear that the technology has reached the mainstream.  Within five years, the ad Age survey respondents estimated that about half of their buys would take place this way. Programmatic Media is getting important for the online market and we need to be able to use this technology efficiently, extracting all the potential that it has.

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