Where does your advertising budget really go? 23 September , 2016

“All advertising should…connect an individual person’s needs to a business that can offer that individual value.” 

David Ogilvy

Gone are the old days where things were advertised on paper and pamphlets, and in its place, the entire new-world advertising sphere has moved to a space that you could almost touch with your hand, but not quite – the digital space. This is where it has been the last few years and it will only continue to evolve.

So, who are the big players and why is it important to pay extra special attention to it? Let’s get into that.

Programmatic advertising

This is a phrase that – if you’ve been anywhere in an online advertising space – you’d have heard about.  It often gets thrown around whenever there’s a new marketing strategy happening. But what is it, though? Well, according to official definitions, you may hear something along the lines of:

“Programmatic Advertising is machine-to-machine automation of advertising/media transactions. This typically involves machine-learning decision-making on both biddable and non-biddable inventory, but currently relies on human input to create rules for both the buy and sell side.”

Did you understand that? Not quite? Let’s try again:

“Simply put, it’s about targeted and personalised advertising and reaching an audience and individual consumers, not the publisher/media channel. It’s also about serving relevant advertising to the right person at the right time. And best of all, it’s about reducing wasted advertising spend.”

Better? I thought so! Some examples that you may be familiar with include things that you see on a day-to-day basis. I have a feeling you may be going, “Aah, is that it?” after we share a few of these examples:

  • Google search (what happens when you type in two words and the rest is ‘magically’ known)
  • Ad networks (matching your online demands with the supply).
  • Real time bidding (real time auctioning of ad space – buying and selling)

When did this all come about?

So now that you have a general idea of what we’re dealing with, you’re probably wondering when this all came to surface. It wasn’t all that long ago that you were paying people for ad space in the local newsletter or forking out for banners to be printed and pasted in bathrooms, right?

To sum it up, this is how much automated advertising has grown in recent years: 40% in 2011 to 90% in 2016!

That’s fast on any account. Why has the growth been so fast, though? Well for both buyers and sellers, the perks have been great:

  • Buyers:  Access to premium inventory, contextual relevance, operational and media efficiencies, and then flexibility in planning as well.
  • Sellers: Transparency, premium environments, control of scale, operational efficiency and 1st party data usage.

Sounding peachy, yet? It’s pretty simple to make this work for you as either a seller or buyer. There are just a few key things to keep in mind.

Understand and reach your audience.

To get optimal results, segment your audience for powerful targeting and send the right message to the right audience at the right time. Programmatic ad buying effectively helps you to increase the Return on Investment of every Rand you spend on digital advertising, because it reaches a targeted audience and also ensures that the advertising message is broadcast at the most cost effective prices through Real Time Bidding on ad inventory. It’s a win-win all around!

By Zaytoon Petersen

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