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What Is Programmatic Buying?

Programmatic buying is the latest media buying strategy to set the online marketing world buzzing. In 2013, revenues derived directly from real-time bidding (an integral part of programmatic buying) hit $1.6 billion and it is estimated that by 2017 34% of display advertising revenue will come from RTB. Programmatic buying is set to become an essential mainstay of all media buyers’ online strategy.

What is Programmatic Buying?

Essentially, programmatic buying automates much of the traditional advertising process. With real time bidding, the media buyer can set parameters as he wishes; bid price and network reach for example. Programmatic buying then layers these parameters with other relevant audience targeting data across the same platform adjusting dozens of variables in real time in order to determine the correct campaign settings to achieve the desired result.

The time-gained advantage of algorithms that filter impressions based on behavioural data cannot be overstressed. Advertisers will be able to spend less time crunching numbers and poring over spreadsheets and more time doing what they do best; being creative.

The Value of Programmatic Buying

The gains to be made through utilising automated media planning are enormous. The pricing model is totally transparent. Buyers are able to use third party data to choose the impressions for optimizing at impression level. The placement process is in effect automated with the target audience being selected based on data considered to be applicable to a particular campaign.

Remnant Inventory

There have been concerns expressed that programmatic buying will merely provide low quality or ‘remnant’ inventory, although this has been disproved. Many premium websites which are accessed through ad exchanges do not classify any of their inventory as ‘remnant’. This is because all the space they have is high quality.

Buying media works best if an integrated approach is adopted and programmatic buying is a vital element of that strategy.

The Future

With the continual advance of technology, programmatic buying can only become more sophisticated and it is pretty much a given that it will eventually have the lion’s share of online display buying. Specialised providers and some of the larger media buying agencies are building in-house platforms to meet the growing demand.

It’s interesting to note that RTB has also been added to social networking sites and new strategies will surely follow that were previously only imagined.

Programmatic buying is certainly the way forward; embrace the change, ignore the skeptics and catch the wave.

Alison Page

About Alison Page

Alison is a small business owner, freelance writer, author and dressage judge. She has degrees in Equine Science and Business Studies. Read her full story at http://www.theladywriter.co.uk

Alison Page

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What Is Programmatic Buying?

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