Even after reading various articles concerning the nature of Programmatic Ad Buying, it can be somewhat difficult to pin down exactly what it is. Perhaps that is due to marketers using it as sort of an umbrella term for targeted ad buying. While the definition of Programmatic Ad buying is kind of hazy, the direction it’s headed is very clear.
The most agreed upon definition of Programmatic Ad buying pegs it as a way of using automation to bring your ad to the right audience at the right time, using behavioral and intent-based targeting, while also incorporating a real time bidding system much like Google’s Adwords.
Perhaps the biggest push towards this new system of Ad buying is due to the efficiency it would provide marketers. All Programmatic Ad Buying would be carried out by software that ensures your ad is getting to the right person, at the right time, in the right place. This new system would increase marketing productivity far past what a human marketer could achieve, while freeing up that marketer’s time for more traditional marketing efforts, more suited for a human being. In the future we could potentially see this system used to handle nearly all digital marketing efforts.
So where is Programmatic Ad buying headed? In the future, this system might track your digital activity using an automated profile creation system. Instead of cookies on each browser you use, this would essentially follow you to each device you use, meaning no matter what form of digital advertisements you are subjected to, they are relevant to your interests based on your online activity and behavior. So instead of seeing an ad during a YouTube video for some medicine you won’t need for another 40 years, you might see an ad for that car you recently showed interest in.
Programmatic Ad buying has the most potential for media rich advertisements, such as video ads during streaming media. Currently these types of ads are not tailored to the audience whatsoever, they are presented from a preset bank of ads based on whoever is paying that media source at the moment.
While it is not exactly Programmatic Ad Buying, I would like to use this blog to address an advertising patent owned by Sony.
The patent is for a new method of skipping through streaming media advertisements, such as those found on YouTube. Say you are watching a video on whatever device, and an ad for McDonald’s starts playing. Instead of the usual click here in 5 seconds to skip the ad, this patent wants you to stand up and literally shout “McDonalds!” at your screen to skip the ad. Sure you get to skip the ad fairly quickly this way, but the marketers win in the end, by getting you to verbally acknowledge the ad.