Saturday, November 23, 2013

Programmatic Advertising - The Change of Digital Marketing

If you have not yet encountered agencies telling you they are shifting ad budgets toward programmatic buying, you will.

Technology is allowing agencies to place ads on digital properties based on specific audiences, with a specific ad, at the right time, to the right person...all in real time.

That's why it started out being called Real-Time Bidding (RTB) which pretty well explained it, but didn't sound sexy enough for the ad industry. Thus, programmatic buying is the term more typically being used.

It still takes people inside agencies to establish criteria that computer programs will use to automatically place buys in a fraction of a second, but certainly less people are required. Sure, there are people required to analyze metrics and twist the knobs to adjust buying criteria to get the most effective results, but again, it is less people.

Those overseeing programmatic buys are being referred to as the people at the "trading desk." References from keynoters and speakers at the Online Media Marketing and Advertising conference on RTB this week commonly referred to commodity buying at the trading desk. All media have been bought on a commodity basis to a degree. This is the ultimate in commodity buying.

Will this technology move to traditional media? Dan Ackerman, SVP of Adap.tv, speaking at the Streaming Media West conference early this week, says much of online video and display is already being purchased using programmatic buying and he expects it will creep into broadcast TV as technology evolves.

That would indicate the same could be in the future for radio. So is this the end for radio salespeople? Certainly not.

There may be a percentage of advertising dollars moving to programmatic buying in traditional media when systems are in place some years from now, but there will always be a need for people to handle many types of advertising transactions. Ackerman agreed, saying creative advertising ideas, sponsorship campaigns, and human interaction will be required by agencies and advertisers for much of their buying.

The key for radio salespeople to remain relevant is providing agencies creative solutions supporting advertiser objectives; developing turnkey integrated campaigns consisting of on-air, sponsorship, and digital; and building professional relationships with all levels of the agency.

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