Blog : SEM

The ability to present the right advertisement, to the right person, at the right moment is priceless. Computers have forever changed the advertising landscape. They have brought together all of the key stakeholders in a place of efficiency and finesse. This is called programmatic media buying (sometimes simply referred to as ‘programmatic’). Its simple beauty is founded in highly complex math. This is the computerized, mathematical purchase and sale of advertising space in real time. Fluid and seamless; it presents seemingly effortless connections between the consumer, publisher, and advertiser.

It is more than just the computerized buying and selling of ad space. It’s an interactive relationship between all of the players in the online advertising world. One definition is “the automated method of buying digital advertising in which supply and demand partners make decisions on a per-impression basis and adhere to business rules as provided by the operators of each platform”. Defining the inter-relationships between the stakeholders can be difficult. A group of industry experts offered their insights to help define the process for the layperson.

Simply stated, this process levels the playing field for companies of all sizes. If two companies have the same amount of funds for advertisements, ‘Bob’s Key Shop’ can have the same market reach as a ‘Target’.

This process provides an established pathway allowing all parties to reach highly focused goals. Companies can focus their advertising budgets on an exact audience. If they need assistance in defining their target audience, they system provides the support and data to bring the parties together. Long gone are the guesses of “how do I get my audience to notice my business?” A focused approach delivers data-based results.

Programmatic has dramatically changed the marketplace for everyone. For clients entering the marketplace for the first time, the system is tremendously beneficial. “Programmatic buys are a good thing for our clients when it comes to paid media campaigns, (meaning SEM, display banners, desktop, and mobile marketing) along with traditional tv campaigns. It allows us to get inventory which normally wouldn’t be available to the client, at an affordable rate. It’s definitely a good thing for paid media campaigns.” – William Belle, Chief Colure Advisor.

The system hasn’t always been embraced by everyone in the marketplace. This response is from a blog posting from just five years ago:

“Sounds like another thing for large companies to spend more on staff figuring it out than they’ll ever make/save on ROI, and another thing for scammy marketing companies to sell contract services to small businesses. In 3 to 5 years, the fad will have passed, some lessons will have been learned and the smart businesses will come and implement changes and software then. My ROI is not a beta test.”

Over $46 billion will go to programmatic advertising in the US this year, according to eMarketer’s latest programmatic forecast—about $10 billion more than last year (2017). That means 82.5% of all US digital display ads will be bought via automated channels in 2018.

Some of the concern is based on who the end consumer may actually be. “There is some skepticism of Programmatics because we don’t truly know if a real human is absorbing the content,” says William Belle, Chief Colure Advisor. The focus and delivery are there, but it’s impossible to gain a definitive assessment of the message consumption. The fact that a human is still the ultimate consumer leaves a variable in the equation. The true level of message absorption can never be accurately measured. Like they say, ‘you can lead a horse to water, but you can’t make ’em drink’.

Despite voices of concern, the marketplace performance of programmatic purchasing has been well established. The significant growth in market share has provided the viability that few question.

If you want to discuss entering the marketplace with your business, contact Colure’s project managers to see how programmatic media buying can assist your company.