Programmatic Advertising is buying digital media that leverage technology and data to automate purchasing ad space to reach targeted customers. It enhances the targeting, dividing targeted customers to ensure ads are not lost on sites their target audiences are not visiting.
Introduction to Programmatic Advertising
In technical terms, Programmatic advertising is buying and selling of ad inventory through an automated bidding system. It helps brands and agencies to buy ad impressions on publisher sites and apps with the help of a sophisticated ecosystem.
While the traditional way includes requests for tenders, proposals, negotiations, and quotes, programmatic buying uses algorithm software to purchase and sell online display space.
The main motto of Programmatic Advertising is to replace human negotiations with AI optimization and machine learning. The objective is to increase transparency and efficiency for the publisher and advertiser.
When did Programmatic Advertising Start in India?
Programmatic advertising started in India in 2014. Since then, India has raised its share of display ad buying, up to nearly 25% of the ad spend in online ads in 2019. By 2019, the online ad market had collected 1.93 billion US dollars in revenue.
80% of Indian advertisers have experienced an increased reach and brand efficacy with Programmatic Advertising. Statista states that Programmatic Media Buying included 41% of India’s expenditure on online advertising.
The number will increase up to 74% by December 2022. Thus, the ad impressions created by Programmatic Advertising will make considerable changes in the advertising industry in the coming two years, ultimately leading to plenty of career opportunities.
Benefits of Programmatic Advertising
Flexible and scalable spending- Programmatic ads are scalable in how much is spent on different ad campaigns, making it the correct form of advertising for small and big businesses.
SMBs with restricted budgets can put a monetary ceiling on campaigns to avoid overspending.
For instance, Google Ads lets average regular budgets for campaigns.
It will control when to utilize the budget regularly based on factors influencing the campaigns’ ROI.
Due to this, brands can use their budgets efficiently, and the scalability of ads that run through programmatic advertising is flexible. As a result, companies reduce or increase the budget whenever required.
Massive reach- Programmatic advertising offers huge reach to marketers as the marketplace for publishers exceeds all other things.
With millions of websites and the ad space sold by them, programmatic advertising provides an opportunity to reach a diverse audience based on the needs of the purchaser.
It is unmatched by any other form of advertising and offers programmatic advertising a significant advantage in this context.
Transparency- Programmatic ads offer transparency for marketers, giving them total visibility of their campaigns. For example, marketers can see on which sites their ads are placed, what type of audiences are visiting them, and their ROI.
It makes it much simpler for marketers to track the success of their campaigns and how to move forward to improve their campaigns.
For instance, they reach out to their target customers by seeing what websites are currently in use and whether the messages reach the right targeted users.
Efficiency- Access to the efficiency data in real-time signifies that the marketer can make alterations wherever required and optimize the style and placement of digital ads to make conversions efficient. The data-driven approach to programmatic advertising makes it an excellent tool for advertising.
Different Types of Programmatic Advertising
Programmatic advertising now covers a wide range of formats. Earlier, there was a time when it was Display ads, but now the options in Programmatic advertising have increased.
Display- It is the oldest form of programmatic advertising. However, rather than staying static, these ads are dynamic. Continuous technological development, mobile optimization, and improved data use have seen new opportunities emerging.
With the advent of modern technology, many marketers have adopted creative programmatic strategies that target customers with the correct offer at the right time.
Video- Buying and serving digital video programmatically- in different channels is now an essential strategy for marketers. There are two distinct types of programmatic video ads. These are out stream and instream.
Social and Native- These are programmatic ads combined with the content on a social network, website, or any other application.
For instance, it could be for sponsored content, so setting up contextual targeting and customizing your ads play an important role.
DSP advertising allows advertisers to purchase programmatically across significant social advertising networks.
Voice- The discovery of Amazon’s Alexa and the growing popularity of streaming apps like Spotify have observed the emergence of another format, i.e., voice. This format provides a rich source of both user-focused and contextual targeting.
Digital out-of-home- Programmatic has entered the world of out-of-home advertising with digital signage. But unfortunately, the production procedure of the advertiser, media seller, agency, and printer is ready for destruction.
Television- Currently, programmatic television ad spending is insignificant (it accounts for around 2.5% of total ad spending in the US).
Yet, prominent industry players, like SKY, Netflix, and Google, are constructing the infrastructure required to support the shift to programmatic TV. However, the format requires more development from the programmatic structures discussed.
Growth of Programmatic Advertising
The Pandemic has resulted in several changes in the world of Programmatic Advertising. It is currently experiencing a change while escalating to new heights.
Programmatic ad spending moved past $150 billion worldwide by 2021 after reaching heights of nearly $129 in 2020, as per Statista. Keeping the statistics in mind, if there was a time to be aware of the recent trends in the ad space, it is now.
By 2025, the US digital ad market will cross $300 billion, making up over three-quarters of all media spending.
Why is Programmatic Advertising a Boon to Indian Marketers?
Indian marketers have embraced Programmatic media buying with open arms as Programmatic ads help Indian Marketers advertise their brands online within an adequate budget. But next, to do any online advertising, you require users to get engaged through any of their devices.
India has the maximum number of smartphone users compared to any other country. Indians spend about 180 to 210 minutes on their smartphone watching online content or playing online games.
This user behavior supports Programmatic advertising to convince Indian Marketers to embrace it to advertise their brands online. Because of this, programmatic ads are growing yearly at a rate of 70% in India.
Programmatic Display ads will rule the US ad market
Programmatic contributes a large share of display ad spending. In 2019, over 86% of US display ad spending was executed programmatically, and that percentage will increase by almost 91% in 2023.
The dollar volume of Programmatic displays will double in that time, from just over $61 billion to almost $142 billion. Walled gardens will run profits in CTV, retail media networks, and social media platforms.
Google, Amazon, and Facebook ads are by default programmatic, and their share of total US display ad spending is rising compared with the other non-triopoly publishers.
It is happening mainly because these tech giants rule the areas where the digital ad budgets are increasing, like social, eCommerce, and CTV.
Job opportunities in Programmatic Advertising
Industry experts believe that with the surge in Programmatic ads, brands and agencies are having difficulty getting the expert workforce at the earliest.
Programmatic advertising is rising considerably and will have reached 42 percent in 2021. According to the Pitch Madison Annual Report, it was around 12 scale points more than 30 percent in 2019.
However, AdEx in India is also expanding by surges and bounds and has crossed Rs. 74,000 crores in 2021 with a 34% share in digital.
There is a shortage of resources in Programmatic advertising at all levels in India. Talent exists, but because of the opportunities offered by India, some of the top global companies prefer outsourcing talent from other places.
Therefore, getting the right people who can do the work correctly and on time is difficult.
The reach of these Programmatic ads to tap customers of specific interests, demographics, behavior, etc., makes it clear to obtain improved derivatives.
For example, during the Pandemic, Programmatic was poorly hit as brands could pause their campaigns instantly-but its flexibility allows it to rebound instantly.
Currently, India is one of the fastest-growing advertising markets worldwide. According to the OpenX & ExchangeWire report published on “The State of Programmatic in JAPAC, 2021, more than 35% of Indian advertisers are assigning nearly 40% of their ad spend to the Programmatic strategy.
To cope with the demand and supply gap, brands adopt a multi-thronged approach. As a result, several intelligent minds within the brand were interested in participating in the increasing programmatic association.
In addition, freshers, and digital marketing graduates, prefer to begin their careers with Programmatic media. Last and most important thing, most companies are upskilling their employees by encouraging them to learn Programmatic advertising.
Why is now the right time to learn Programmatic Advertisement?
Nobody can ignore the situation that 2020 had for us. The Covid-19 Pandemic will keep challenging the advertising industry as consumption habits and marketing budgets keep changing.
There is no need to repeat the point that has been making headlines for a long, but if you are reading this, we hope you have understood the storm and are excited about what is coming.
According to predictions, the total spending on Programmatic Display advertising in the United Kingdom will continue to expand annually.
The point to consider from this is that Programmatic buying will come out positively from this disaster and continue to rise.
The infrastructure of the digital industry is vast, and advertising budgets can take different forms ranging from sophisticated secured buys with various publishers or a systemized approach to a direct reaction within the demand-side platforms with a lot of inventory to join in.
It means that a career in Programmatic Advertising allows communication and innovation with different partners and a situation where no two weeks will be similar.
You’re mistaken if you think you cannot influence other marketing channels by specializing in Programmatic Advertising.
All parts of online marketing are linked as we focus on putting our customers and their online journey before anything. Therefore, repeated thought leadership in this field is essential.
So, if you also want to learn Programmatic Advertising and build a career in this field, then now is the right time.