The role of mobile in the programmatic landscape

If you work in media and marketing, you will have definitely come across terms like programmatic, real-time bidding (RTB), demand-side platforms (DSPs), and trading desks.

This is a result of a fundamental shift in advertising from traditional to digital. Automated advertising is revolutionising the industry, and mobile in particular is a leading area of opportunity for programmatic. This form of marketing is fast replacing the days of RFPs (request for proposal) and I/Os (insertion orders), and is proving effective and efficient for advertisers.

According to a recent Millennial Media survey, expenditure on mobile programmatic has also led to increased investment in rich media ad formats with 40% investing in native ads, 64% in rich media, and a massive 74% in mobile video. This indicates that mobile programmatic campaigns have evolved from the “testing” phase to an “investing” phase, triggering significant growth.

Take a look at these stats from the same global survey, wherein of the programmatic buyers 63% are located in America, 26% in EMEA and 11% are from Asia Pacific.

  • Of all programmatic campaigns, 78% are targeted in North America, 19% in Latin America, 39% in EMEA and 24% in Asia Pacific
  • 91% of buyers who invested in mobile programmatic last year continue to increase investment in 2015
  • The share of buyers spending over $15m grew three times year-over-year

Mobile video advertising has found its place in the programmatic arena as well. The use of video ads skyrocketed 23% last year, and is still on the rise. Programmatic video ad requests grew 1.5% per day in Q1 2015, according to programmatic buyers in Millennial Media’s survey.

So whether it’s video or native advertising, publishers can now maximize the value of their ad space. Moreover, through programmatic buying advertisers can strategically purchase impressions that reach the right audience, placement, or content category to increase their campaign ROI.

A great example of this would be Kellogg’s that saw tremendous results through programmatic buying. The ROI increased as much as six times by utilizing digital programmatic media buying process across Kellogg’s. This is just one example of how advertisers are achieving their brand objectives by increasing expenditure within the mobile programmatic space. Consequently, brand marketers cannot ignore the rapid expansion and dramatic growth in the world of programmatic advertising.

Typically, programmatic advertising platforms use real-time and third-party data to identify the best online audience for campaigns. Consumers can be identified by multiple data points including demographics, geography, interests, behaviors, time of day, weather and the kind of device they use. By further breaking it down to these details, advertisers can tailor messages get closer to the elusive “sweet-spot” that converts leads into sales.

Although there is undeniably a lot to get to grips with still, we do know that there are three key considerations in the programmatic landscape that will help drive digital ad spend – collaboration, clarity and education. By working together as both the technology and the industry evolves, we will reach a stage where programmatic will serve as a critical component of not just mobile advertising, but for all digital advertising.

Take a look at the insights on the latest trends in programmatic buying: "The Growing Investment in Mobile Programmatic".