Programmatic media buying

Despite the decrease of the media buying budgets from the giant advertisers, the part of the digital communication budget is still increasing. This information demonstrates that the conventional media channels such as television, radio, cinema and outdoor are kept going down while the budget allocated to the digital media keeps skyrocketing. The most important and revolutionary point in digital communication is programmatic buying. The programmatic buying is a newly established platform where advertisers and publishers meet online. The platform helps the advertisers to find the most suitable and the cheapest place for their ad. As for the publishers, the platform helps to match their digital inventory with suitable ads.

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programmatic media buying

The big advertisers have already seen the opportunity behind the digital channel so they are allocating more and more budget each year. However, when the programmatic buying term comes up, they get sceptical very easily. The programmatic buying will be the new trend for the upcoming years. The difference between conventional digital buying and the programmatic buying is simply the performance. When buying with conventional methods all the estimations with the budgets are defined previously to the campaign launch and it isn’t the most suitable method for optimizing the campaign. However, the programmatic buying is happening simultaneously with the each opened ad space online which results with economy around 30% of the budget and which gives the marketers the opportunity to optimize their campaigns more efficiently.

The problems with the programmatic

The main problem for advertisers is that they don’t allocate 100% of their budget on programmatic buying. As this is a quite new way of purchasing media spaces, there isn’t a lot of benchmarks and data available on the programmatic buying. This makes the advertisers very shy on the programmatic buying. Because of this uncertainty, the advertisers allocate on average 30% of their budget on programmatic while they put the other 70% of the budget on the conventional buying.

The efficiency of the programmatic

However, the programmatic buying results in a very useful way for the advertisers. Thanks to the programmatic bidding platforms the budget optimizes itself and brings on average 20% more performance with the same budget compared to the conventional methods. And for optimizing the budgets for the top performer artefacts is very easy and quick. So programmatic buying brings economy, productivity and rapidity to the campaigns, thus to the giant budgets.

The recommendation for the advertisers is to invest more and more on the programmatic buying to help develop more efficient platforms.

You can read more on State of Digital.

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This Post was created by:
 Anne Barbotteau; Marina Selim;  Harini Srinivasan; Berke Berberoglu ; Hugo Baumier; Claudia Chalandon.