Programmatic is one of the fastest growing facets of digital marketing. A research Rubicon Project recently revealed that by making a two-fold investment in programmatic, marketers may achieve as much as a 6% increase in sales, and a 22% increase in marketing return on investment.
Therefore, it comes as no surprise that there has been an increasing amount of focus on this automated process of buying and selling of data analytics. And while in the near future we can expect prices to drop because of the increase in demand, currently price still remains a big factor – especially if a brand is new to the programmatic area.
Steve Doyle, chief commercial officer of InSkin Media, said when many new brands exploring this space are told they have to put in additional dollars for verification and other administrative issues (otherwise known as non-working media), they often deem the spend as an additional cost rather than an investment.
Miranda Dimopoulos, CEO, IAB Singapore and ambassador to SEA, said that the cost of programmatic, and its value, are directly proportional to each other. However, she points out that the industry is still at a stage where it is being educated about the advantages of shifting onto the digital platform.
Therefore, at this point in time, it is challenging to explain to marketers, that they need to invest 30% of the media budget onto programmatic platforms to draw effective results.
Sanchit Sanga, chief digital officer of Mindshare APAC added, 30% of a typical programmatic campaign is non-working media, which is a significant chunk. As such, he added that the cost model is not conducive.
“The ideal cost of non working media should be reduced to 10-15%. This way, advertisers would feel more motivated while investing in programmatic,” he said adding:
Failure to do so would be an obstacle for marketers.
But he added that as investments in the programmatic arena increase, the cost of technology would eventually drop, as it is with any other form of technology. Programmatic is no different.
Creative usage of programmatic
While the common perception is programmatic falls in the hands and duties of the media planners, the truth is, creative minds can gain a lot from this automated process. Multiple segments means multiple tailored messaging based on their needs, wants and behaviors
Sanga, at the panel discussion held by InSkin Media, stated that programmatic arena creates a massive opportunity for brands and agencies to carry out creative projects together. Integration of creative process in the programmatic space is still at a nascent stage but with better integration of the creative and media, specifically on programmatic media, a whole new avenue of creative responses might be created.
The massive amount of data access which enables brands to have “one voice” and “one message”, said Sanga, adding:
To us, programmatic is an opportunity and I see no reason why it isn’t for others.