Programmatic Advertising: The Future of the online advertising landscape

  • Nandita Raman
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  • Published Date : 23 September , 2019
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  • Updated Date : 24 May , 2021
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    • 8 min read

Programmatic advertising is considered to be one of the biggest digital marketing trends in 2019 and Google has predicted that 60% of its advertising budgets will be put towards programmatic by the end of this year. Although programmatic advertising has taken over a fair share of the digital advertising space, there is still a level of uncertainty among many marketers. The main reason for this is the lack of information when it comes to programmatic advertising and the reluctance in letting go of traditional advertising methods. So how can programmatic advertising help Indian brands take their customer reach to the next level?

What is programmatic advertising?

Today, two important factors that play a crucial role in the success of a business is its marketing techniques and digital advertising tools. Earlier many companies were dependent on offline mediums of advertising, but in recent years digital advertising has become the primary means of marketing for many businesses. Programmatic advertising is taking centre stage when it comes to this type of marketing. 

‘Programmatic’, as the name suggests, is the use of a program or software to buy digital space/inventories. Not only is this process more cost-effective but it is also incredibly efficient. There was a time when the process of advertising involved numerous sub-processes and human negotiations that resulted in a lot of delays. But with the use of artificial intelligence, programmatic advertising has made ad buying in the digital space easier than ever. 

How does programmatic advertising work?

In its simplest form, programmatic advertising is an automatic bid on advertising inventory which happens in real time. This is known as real-time bidding. It gives the owner of the ads the freedom to create and optimise the adverts to their liking. However this type of programmatic advertising is just one type, there are other programmatic types that guarantee impressions from specific websites. This is referred to as programmatic direct. 

When a person engages with a programmatic ad, the website publishing the ad bids for an impression in an auction of the ad in the marketplace. This auction is run among the different advertisers who want their ad to be displayed on the webpage. The brand with the highest bid wins. 

Although this auction process may seem time-consuming in theory, the system is automated and the entire auction can happen in milliseconds that it takes for the web page to load. The bids of each of the competing advertisers is pre-programmed into the system. When the customer clicks on the ads, the advertiser will convert this into a sale.

To learn more about programmatic advertising check out our video on how can it help your brand scale your digital marketing efforts. 

Types of creative formats for Programmatic advertising

When it comes to programmatic advertising, there are many different ad formats that companies can use so that they can create the largest impact and scale using creatives. 

Here are a few:

Native video

Many brands prefer native ads because they can be customised to meet the look and feel of the publisher’s page. This can result in better visibility and higher engagement with the ad. Native ads also allow you to reach the market quicker because a set bundle of assets are used to fill in the ad templates.

Youtube ad

In today’s mobile-first world, it can be hard to grab the attention of the audience. Bumper ads a quick and efficient way to give the viewer snippets of your product or service while they are on the go. Insteam ads, on the other hand, can be skippable or non-skippable, based on the objective of the advertiser. These ads are optimised with the help of AL and ML for better traction. They also have the added advantage of tracking post-view floodlight activity conversions for a specified attribution window. 

Lighbox ad

Lightbox ad comes under responsive ads which have the ability to fit to any ad space depending on the display screen. Lightbox ads typically contain galleries with images and videos that enable the customer to effectively engage with the ad. Moreover, lightbox ads streamlines the ad engagement which can be done by clicking or tapping on the ad that is displayed. This way it prevents any accidental engagement.

App Promotion ad

The app install platform helps you to create an ad that helps in increasing the number of app downloads. You can promote your app by creating an interstitial ad containing images or youtube videos, catchy title and suitable description. App Install ads are designed to create awareness about the app and also allows users to directly install the app by engaging with the ad.

Parallax ad

Parallax ads helps you create a distinctive and creative ad display. By utilising the parallax animation effect, you can display different images in layers with description. Users can view the entire ad only if they scroll down screen. Unlike other types of ad, the engagement is measured with the number of users scrolling down for complete information, even if they do not click on the ad.

Audio ad

Audio ads helps in brand awareness for reaching to a wider audience thereby increasing the number of leads. With the availability of different platforms like spotify, Apple music, google play and many more, leveraging audio ads will be a potential ad strategy to improve brand reach.

Flipbook

Flipbbok is a unique way to grab the attention of users with a short video on the mobile screen. This video is as short as five seconds and if the user is interested to learn more about the video, they can tap on the clipping to view the entire video. The video clipping plays  while the user is scrolling down and and while scrolling up the video plays in reverse. Similar to parallax ads, the engagement rate is measured by number of users scrolling, even though they do not click on the ad.

How can your business do Programmatic advertising?

Many consider Programmatic advertising to be the future of digital advertising. A report by Magna global stated that by the end of 2019, 50% of all advertising will be Programmatic. 

So how can your business do Programmatic advertising? Like traditional advertising, there are many factors that a business needs to consider before they implement this. They include:

Set goals

Once you know how and where you are going to implement the programmatic ads, the next step is to set goals. You need to know what you expect to get out of programmatic advertising such as the conversion rate or the click rate and set goals accordingly.

Study the market

As with any medium of advertising, the first step is to study the market. Programmatic ads appear on webpages, apps and audio-video content, to name a few. So, you need to know what type of web pages your customers are visiting as well as what competitors in the same space are doing. This will give you a better understanding of what webpages to target based on the audience personas identified.

Take up a full-funnel approach

Programmatic advertising is a great way to put your brand name out there, hence, it is crucial that your ad appears in the right places to the right audience. It is a good idea to take up a full-funnel approach and target the audience based on the consumer's journey. Pick out the information that brings out the essence of the brand in the ad.

Select your audience

DV360 provides comprehensive targeting options in order to fulfill the campaign objectives. Advertisers have the option of choosing Google-provided audiences for no extra cost, along with first-party audiences or purchase third-party audience, based on the campaign goals. 

How to use your company’s data to your advantage?

With the help of data available on the market, the brand needs to gather behavioural insights to run a successful programmatic campaign. There are three types of data that come into play when thinking about programmatic advertising. The first would be the data collected by the marketer on the customers. The second would be the data gathered by an advertising agency who would use the information to help the brand build its programmatic advertising strategy. The third type of data, also known as third-party data are reports that can be purchased by any company online. 

Brands need to pay close attention to the data they collect as it can give them valuable insights into customer patterns and behaviour. Programmatic advertising can then be targeted based on scale and accuracy. If the target audience is small, the accuracy can be intensified on a small scale or vice versa if the target audience is large. 

When it comes to retargeting existing customers, it is important to use programmatic advertising to give them a story behind the brand rather than information about the product or service as you would with a new customer. But don’t focus solely on retargeting, your programmatic advertising campaign needs to be optimised from start to finish to keep the customer engaged at all times.

Challenges of programmatic advertising

There are many challenges for online advertising and programmatic is no exception to these challenges. Although programmatic advertising is slowly gaining traction, the concept is still in its nascent stage. This is mainly because of lack of information about the concept, where and how to use the technique. 

The next big challenge is , having invested money in ads, it is a natural expectation for brands to reap maximum benefits. But what if your ads are viewed by bots and not real audience? This is called as the AdFraud where your investment on advertisements yields no results. Here is where research and knowledge plays a key role in displaying your ads to the relevant audience. You should make sure that your ads are displayed on reputed and trusted websites, for which you should be sure of the website. 

Brand safety plays a prime role in securing your ads on the webpages. Here are some brand safety methods that you can incorporate for your programmatic advertising.

Brand safety measures

One of the key concerns for many marketers today is brand safety. In recent years many brands have become more vigilant about safety measures which were spurred by the many ads being placed next to political and violent content that often took the focus away from the brand’s message.

Here are a few important tips advertisers can use to ensure that their programmatic ad buys to protect the brand name. 

Invest in private marketplaces

It is recommended that advertisers leverage their relationships with publishers and run ads in the private marketplace (PMP). This is an effective way to purchase programmatic ads because you know exactly who you are purchasing the ads from and where the ads will be placed.

Opt for premium placements

It is crucial for advertisers to escape the vicious cycle of posting their ads in fraudulent and irrelevant websites. Your advertisement should protect the brand’s reputation by making sure you place your ads on premium and trusted web pages. Using brand safety you set a platform for the right audience to engage with your ad.

Whitelists

In contrast to blacklisting certain websites, you can also whitelist them. This is a list of sites that are safe to run your ads on. This may seem like a time-consuming task but there are many exchanges that require websites to complete an intense inventory approval process.

Make use of exclusions in your targeting

Not only do you focus on targeting relevant audience, you should also be aware of your negative targets. Under brand safety tools, you can exclude certain web pages from showing your ad, considering the site to be unsafe for your ad to be displayed.

Ad fraud verification services

Advertisers can use the services of third-party vendors to prevent ad fraud. This feature is present under the "brand safety" tab where you can choose between leading providers like Integral Ad Science, Double Verify and Adloox to prevent your ad from being showing to fraudulent websites while saving up on advertising dollars. 

Is programmatic advertising the future?

Programmatic advertising is definitely on the rise in India in 2019 largely because of the efficiency it provides. Traditional ad campaigns require a lot of iterations and can either be a hit or miss. But with programmatic ad campaigns, brands don’t need to worry about their ad expenditures. The program ensures that money is spent in the best possible way. All you need to do is enter the required information into the software and you are all set. 

Programmatic advertising uses customer’s data and company goals to create and set ads to effectively target the customer base. This type of ad buying frees up more time from brands and agencies that they can use to think more creatively about the customer and how programmatic advertising can be leveraged to engage with India’s next billion Internet users.

Google offers their programmatic solutions only to agencies and not to brands - but there are agencies like Social Beat that offers a self serve option to brands and other agencies where they can use the existing DV360 access to run campaigns. This is known as Self Serve programmatic advertising.




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