Programmatic channels are growing, both in terms of investment and digital maturity. Programmatic channels for the big brands account for 41% of digital media investment around the globe, compared to 16% in 2016, according to the World Federation of Advertisers and IPONWEB.
Proven by the rise in Programmatic trading desks and in-housing, brands have shifted the conversations from adopting Programmatic to learning how to utilize Programmatic efficiently. So how best should your brand use Programmatic? Here are 3 things to consider when embracing Programmatic to drive incremental performance.
Programmatic is a much more effective and efficient way of buying digital media, through the use of data. Not only can you consolidate digital channels to efficiently measure and allocate marketing budget but you can also scale your potential reach across emerging advertising formats such as audio and connected TV.
Programmatic enables brands to use and empower their first-party data in order to drive incremental reach and scale. Programmatic empowers marketers to amplify their marketing mix through data driven audience and targeting strategies.
You may be familiar with David Ogilvy’s famous quote, “Never stop testing and your advertising will never stop improving”. This golden rule is timeless, but evaluating the effectiveness of advertising is not an easy task.
A/B testing has existed for a century and as technology evolves, Programmatic has involved more scientific models and control groups to find out what works and is important no matter if you’re comparing audience, creative, bidding tactics or strategies. You should think about the statistical significance with these considerations and have they been incorporated into Programmatic solutions to measure incremental performance for media optimization. This is available for brands to leverage due to scalability, data richness and granularity brought by advertising technologies.
To further measure ad effectiveness, some Programmatic partners have developed proprietary technologies to deliver AB testing at scale without the additional costs involved. This allows an apple-to-apple comparison for users who were legitimately reached by the advertiser’s campaign and measure the incrementality of advertising.
An average person is exposed to around 4,000 to 10,000 ads per day. Needless to say, that is a lot! It also implies the difficulties for brands to capture consumer attention and influence consumers to take action.
To quantify digital campaign effectiveness, an Integral Ad Science (IAS) research study has shown viewability strongly ties to outcomes. A significant lift (from 67% to 83%) in conversion rates were observed within the viewable group. In addition, optimal settings in frequency of viewable impressions and time-in-view contribute to incremental lifts in performance.
Programmatic buying should be customized and never off-the-shelf. Each brand and each campaign requires a unique formula of success through data, measurement and most importantly the people or partners involved.
If you are looking to drive optimal incremental performance for your brand, get in touch with our team today for a consultation!