Automation is dominating the advertising industry with efficiency, and programmatic advertising is no exemption. It has taken our traditional methods of reaching consumers and optimized them to be more efficient, personalized, relevant, and cost-effective. Forget throwing your advertisements out there for everyone to see and narrow it down to the ones that matter — even in your OTT/CTV campaigns.
In fact, eMarketer says it’s gaining ground in its less-penetrated areas like connected TV (CTV) devices and digital audio ads. Moreover, they predict programmatic ad spending will grow the fastest on CTV, seeing a 52.9% growth within the next year.
Here’s what you need to know, including the 5 major advantages of programmatic advertising for OTT/CTV campaigns.
PROGRAMMATIC OTT ADVERTISING
The fact is, media consumers are moving away from traditional broadcast/cable consumption and opting for OTT (over-the-top) streaming services, usually on a CTV device. According to Allied Market Research, the global OTT market size was valued at $121.61 billion in 2019 and is projected to reach $1 trillion by 2027. That’s a CAGR growth of 29.4% from 2020 to 2027.
Media buyers know this, presenting the opportunity to merge programmatic tactics with OTT/CTV advertising to automate the ad buying process in the OTT/CTV space and optimize the consumer experiences with brands in the media environment.
While it is a relatively unknown term, Programmatic OTT advertising will become a more standardized marketing tactic in the coming years. It has already proven itself incredibly valuable, changing everything in the traditional media buying process for the better.
Likewise, programmatic combined with OTT/CTV will take media consumption to the next level — taking real-time household data and presenting only the most relevant advertisements to the most relevant consumers via real-time bidding.
5 ADVANTAGES OF PROGRAMMATIC ADVERTISING
Out of the many advantages of programmatic advertising, at least five major benefits stand out. They are, without a doubt, the key components of maximizing your advertising potential and reaching your consumers with the right message.
With automation, the programmatic ad buying and real-time bidding process is completed in milliseconds. This automation saves massive amounts of time compared to traditional tactics: requests for proposals, tenders, quotes, and human negotiation. Just think of all the time you would be opening up for skilled employees by letting automation take care of smaller, less significant tasks. And quicker than a blink of an eye, no less.
As the first firm to programmatically place video ads into OTT/CTV Strategus knows the ins and outs of successfully delivering OTT/CTV advertising campaigns better than anyone in the industry — and it includes maximizing the potential of programmatic advertising and its automation capabilities.
Programmatic ad buying uses algorithms to pinpoint when and where to deliver your content to targeted consumers. It is based on collecting and evaluating data from thousands (or more) of individual users that create more in-depth, concrete buyer personas through similarities in certain characteristics, behaviors, and more.
These algorithms are then used to automatically buy media space relevant to the criteria, rather than traditional methods that are less data-driven and more buy-as-many-as-you-can.
Even better, Strategus optimizes and customizes algorithms at the onset of every campaign to ensure you get the best results and win only the most qualified impressions. Following the campaign, algorithms assess the failures and successes to better determine future campaigns and decisions.
3. Audience Targeting
With access to demographics, location, device, operating system, browsing history, and more of the intended ad recipient, you can set your programmatic ad buying algorithm to target your exact buyer.
In advertising, it’s all about what you know (as it pertains to your customers, of course) and how you use that information to reach the right people. Audience targeting is the way to do that. Programmatic ad buying maximizes that targeting potential while reducing ad waste spending that’s lost on anyone other than the right target audience.
Better audience targeting means more demand. In fact, Hubspot reports that ad placement and audience targeting are the top ways that advertisers drive more demand.
4. Real-Time Campaign Reporting & Insights
Programmatic advertising offers real-time data that advertisers can use to optimize and adjust their campaigns on the go, something difficult (almost impossible) to do with traditional ad placement. Arguably the most important benefit of programmatic advertising, this data allows for more informed decision-making throughout your campaign and the ability to make quick fixes when necessary.
It’s no secret how much of a challenge it is to find winners in the media world, but with real-time reporting & insights, advertisers can get reliable data about their campaign in a matter of minutes to suss out the losers before they take up more time than they’re worth.
Traditional methods wouldn’t be able to do so with the same precision and time and would certainly take longer to figure out what’s working and what’s not.
5. Reach & Relevancy
Programmatic ad buying across multiple ad exchanges gives advertisers the ability to expand reach beyond traditional means. This means you have access to more current and potential customers than ever before — on multiple platforms and with a click of a button!
Furthermore, to combat the ad’s over-saturation, programmatic algorithms ensure you optimize reach while still targeting relevant audiences. This means, not only can you expand your reach to various platforms and media channels, but the algorithms match your consumer criteria to only relevant auctions/audiences with little to no effort on your part.
Programmatic OTT/CTV Advertising Capabilities
The combination of being less-penetrated and also the fastest-growing will allow for even more success with programmatic OTT/CTV advertising going forward.
It can be a challenging area, but with the right partner, you can get back to other important matters while still enjoying the major advantages of programmatic advertising in OTT/CTV campaigns, including the speed of automation, customized algorithms, audience targeting, real-time campaign reports & insights, and reach & relevancy. As part of our OTT/CTV advertising capabilities, our team at Strategus helps media buyers reach their full potential with programmatic ad buying — the automated purchase of online advertising impressions. Contact us for more news on how programmatic advertising and OTT/CTV are changing the industry.
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