Selling media and ad space have become more challenging as marketing budgets remain static and the number of possible channels increases. Increasingly sophisticated technology is one way for publishers to offset changes in the digital advertising space by making more on each impression. Mobile programmatic advertising allows publishers to easily demonstrate value, improve customer engagement, and deliver higher conversion rates.
What is Mobile Programmatic Advertising?
Traditional media buying involves a long, tedious, and slow process of buying ad space in bulk. This method is costly for buyers and publishers, eating up employee time and reducing the effectiveness of marketing campaigns. Buyers are left with ad spaces that do not drive return, while publishers build bulk packages that combine little-used avenues with their most popular sellers, driving down the return on each sale. With mobile programmatic advertising, an automated system takes care of the buying and selling, streamlining the process from end-to-end. Programmatic advertising comes in a variety of types, including:
- Open Marketplace (RTB): The most popular, and often the most successful, type of programmatic advertising is real-time buying. This method allows marketers to engage with customers based on their current activities.
- Private Marketplace (PMP): This method involves premium ad space that is sold through an invite-only platform. It allows buyers to contact multiple publishers for ad space through a single portal.
- Direct Programmatic: Similar to traditional methods, direct programmatic focuses on where the advertising is located instead of consumer behavior. It pairs publishers with buyers based on a set of criteria and automates posting. There’s no auction for space, just a set price, a seller, and a buyer.
Real-Time Buying for Best ROI
Many people use RTB and programmatic advertising interchangeably since this is the most popular form and offers the best value. Instead of buying direct with upfront payments to the publisher for a set amount of inventory, RTB allows greater flexibility and is particularly effective for awareness campaigns. These types of ads do not require users to leave the app they are using, making it a better retention tool for users and publishers.
How RTB Works for Marketers
Programmatic capabilities allow marketers to deliver their ads to the right consumers, at the right time, with the right message. Essentially, this method tracks user data like content viewing, demographics, industry affiliations, past behavior, etc. Then using that data, shows ads that are relevant and timely to the specific consumer. By tailoring ad offerings based on interest, marketers avoid paying for impressions to uninterested parties and focus on the highest quality leads. It’s people-based marketing at its best. By delivering the right ad content to the right consumer at the best time, publishers can charge more per eCPM and build on-going partnerships with big brand advertisers.
Outcomes and Market Share
Customer acquisition costs are one of the big limits when building a brand, so any method that helps grow recognition without unlimited marketing dollars is a win. Programmatic advertising has the potential to deliver a lot of wins for brands, making it an even bigger win for publishers. By the end of the year, nearly 75 percent of all digital video ads will be transacted programmatically. The conventional methods of media buying simply do not deliver the same value. At the same time, expect to see even more PMP media, as advertisers seek greater control over where and how their ad content is displayed. For publishers, that means an even greater return on their ad space, as they become premium placements for the right niche.
Sandor Jones | Product Marketing