Now is the Time for Advertisers to Reach Consumers through Digital Channels

Consumers love online content. Not only are they spending more time at their computers, but targeting methods are becoming more advanced each day. The industry employs some of the world's brightest minds and competition between advertisers is cut-throat. Companies are desperate to understand their consumers' needs and many are looking for new advertising channels. Programmatic advertising is an exciting development. According to econsultancy.com, 62% of marketers use programmatic for brand objectives. In 2018, it is estimated that programmatic advertising will account for over $18.2 billion in U.S. digital advertisement revenues, a dramatic increase from $3.1 billion in 2013.

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Why is Programmatic Advertising so Exciting?

Programmatic essentially means automatic. Programmatic buying refers to advertisement space that is bought on a web page by an automatic service. This can be achieved either through bidding for the space or by purchasing it directly. What this provides is efficiency. Before programmatic buying, digital advertisements were bought and sold by real people. Humans, by their nature, cost money to hire and can be unreliable. By removing the human capacity for error, laziness and wages from the equation, programmatic advertising technology increases the efficiency of ad buying exponentially. This makes the process smoother, more reliable and more cost effective. It's a win-win situation, unless you're a soon-to-be-unemployed human ad buyer yourself.

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Is Programmatic Buying Different to Real-Time Bidding?

Real-time bidding (RTB) is a form of programmatic ad buying, but there are many other types as well. RTB is the buying and selling of online ad impressions through real-time actions that take place in the time it takes to load a webpage. Previously, advertisers used websites as proxies for the advertisements. For example, if they wanted to target movie fans, they would purchase advertisements on a movie-related website. In contrast, RTB enables them to target their ads to specific users instead of across a whole site. This method is called "programmatic direct."

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Is Programmatic Advertising the Future?

Most likely. Although there are no concrete figures revealing how much of advertising is traded programmatically, its use is clearly spreading fast and wide. With shifting priorities, many companies are changing the focus of their marketing budgets and are now keen to buy as much media as they can through programmatic channels. Meanwhile, major brands have become so interested that they are hiring in-house teams to oversee their programmatic ad buying. Currently, it's mostly online advertisements that are traded programmatically, but media companies are increasingly investigating exciting and potentially lucrative ways to sell traditional media this way, including TV commercials.

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5 Reasons Why Your Business Must Use Programmatic Advertising

  • Clear Pricing

    Programmatic advertising stands head and shoulders above other marketing channels for its benefit-cost ratio. Advertisers pay a fair price for any impression resulting from an auction process. Therefore, it is quick and easy to see how much advertising costs and how much profit it makes. Resultantly, advertisers are able to efficiently manage their inventories by disabling placements that are not producing sufficient results in order to prioritise those that clearly are.

  • Native Ad Formats

    When referring to advertising, "native" means ads that blend in and make sense within the context of the content that surrounds them. Consumers greatly appreciate this too; when obtrusive ads are incongruous with their surroundings, they instantly seem less relevant and trustworthy. A consumer is much more likely to interact with an ad that seems part of the content they are engaged with. Programmatic advertising works perfectly with native ads, improving the contextualisation of the most effective websites.

  • Better Targeting

    Targeting is where programmatic advertising truly excels. Advertisers are able to isolate placements that provide suitable content related to a specific consumer group from across the entire world. Based upon a website publisher's information, this process can be further isolated down to individual pages within a site. For example, Dun & Bradstreet's data has over 30,000 fact-based sources and this can be used in combination with other insights for even more precise targeting.

  • Consumer Insights

    Understanding consumer behaviour is one of the most important factors in advertising, and programmatic advertising gives enormous insight and control. Traditional marketing channels make it difficult to associate consumer behaviour with exposure, but programmatic advertising helps reveal which inventory is performing well and the details of consumer types who respond at certain times of the day. This not only gives invaluable information on current sales but can be used to guide future ones as well.

  • Ideal for Mobile

    With half of all media content now consumed on mobile and tablets, mobile is a superb opportunity for advertisers, particularly when using programmatic advertising. Mobile has been revolutionised by the introduction of apps. One key benefit for advertisers and developers is being able to advertise through other host aps but utilising in-app banners or videos. The targeted nature of programmatic ads means that users are much more likely to interact and, potentially, make a purchase.

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