After posting four blogs about programmatic buying in digital advertising, in this last blog of mine I would like to tell you about the future of programmatic in digital advertising. Will it continue?
According to BCG (Boston Consulting Group), digital advertising revenues are forecast to surpass $200 billion in 2017 globally. Which means? Companies are still believe in digital advertising. At least until short future *it’s 2016, so 2017 is only one year away.
Currently, around 80% of U.S digital advertisements are generated programmatically. Real time bidding (RTB) which is part of programmatic buying is still a hot topic as well. The rise of real-time bidding is crucial, it offers a glimpse of how other ad-supported media may change over time. So far, the future of programmatic looks good, right? But they’re quite some points of improvement that need to be done.
According to research released in July 2015 by Econsultancy and Oracle Marketing Cloud, data management platforms (DMPs) *remember my second blog? are playing an increasingly important role in supporting effective, programmatically-driven, marketing and advertising. “As budgets continue to shift steadily towards programmatic, it’s essential that companies implement DMPs as part of an overarching cross-channel data strategy for both digital advertising and marketing to generate maximum value from those investments,” said Alex Hooshmand, VP Product Management, Oracle Marketing Cloud. Hereby are some of the data from the research conducted:
-) 58% of those companies using DMPs have only started using them within the last two years. In Europe, more than a third of companies (35%) using the technology have introduced it within the last 12 months.
-) ‘Centralised control and standardisation of existing first-party data’ is the most popular reason for using a DMP, cited as a major benefit by 53% of marketers surveyed. The next most popular reason is the use of existing data ‘for better email, web, social and content personalisation’ (51%)
So far programmatic is very popular in digital advertising because it is still one of the most efficient way to buy online ads, no dealing with sales person, no fuss in negotiating terms such as price, audience targets, placements, and the number of impressions being bought. All digitally managed and transparent.
Another reason why I think programmatic will continue it’s roar is, programmatic has better ad relevancy in digital advertising. Programmatic only will target the one that is worth targeted due to the fact that they will only target people according to data that matches the ad criteria, unless tv commercial for example.
However bright the future of programmatic may seems to you, marketers are still have a lot of questions about the continuation of programmatic. Questions such as how much ad-sales staff should be paid, and whether they are still needed at all, when machines seem to be doing the work so much more efficiently. Lastly, Adblocks are there to prevent online advertisement and people use it a lot. What do you think about it? Please leave your comment and opinion 🙂