Online Advertising: Programmatic Spending Soars
One of the hottest buzzwords in online advertising these days is “programmatic.” Seems like everyone is talking about it, and many people are trying to figure it out fast so they can jump on the bandwagon.
To clarify for those who may not already be familiar with the term: programmatic advertising is an automated approach to buying digital advertising, using tech-based tools and resources to target specific desired audiences and maximize the budget through careful bidding strategies. You might think of it as a sort of “set it and forget it” approach to advertising. You select certain parameters for when and where your ad will appear, choose your targets, supply some text and a few other elements (greatly limited by the constraints of the format), and then put yourself at the mercy of the internet and all of its wonderful mysteries.
While this type of approach to online advertising may be more efficient and easier to manage for advertisers, critics argue that it kills creativity and originality in favor of automation and algorithms. As creative types ourselves, we can certainly understand why this move to high-tech over high-concept is very disheartening to traditional advertising professionals.
However, there is strong evidence indicating that programmatic advertising is quickly becoming a dominant force in the modern marketing landscape, so this will likely be a case where you either adapt or get left behind.
Consider these stats that were just released from eMarketer:
- U.S. programmatic digital display ad spending will grow 137.1% to eclipse $10 billion this year, accounting for 45.0% of the U.S. digital display advertising market
- Spending is expected to increase another 47.9% next year and to double this year’s total by 2016, when it will reach $20.41 billion, or 63.0% of U.S. digital display ad spending.
- Mobile will account for 44.1% of all U.S. programmatic display ad spending this year, or $4.44 billion.
Now that the initial learning and testing period for this form of digital advertising seems to have passed after being navigated successfully (and refined) by the early adopters, it is likely that progress in this area will pick up speed and the popularity will grow at a faster pace.
If you are intimidated or confused by programmatic digital advertising, or online advertising/marketing in general, this may all be leaving you dizzy. Don’t panic. KEO Marketing understands the world of online ads and we can design an online marketing strategy that works best for your business.