Programmatic media buying is the future. What is it?
Programmatic media buying uses algorithms to dynamically purchase advertising space in real time. During this process, software is used to automate the buying, placement, and optimisation of media inventory via a bidding/auction system
More simply - Consumer data (captured live while those consumers are active online) is matched with other behavioral information (using algorithms) and offered to potential advertisers who bid in real-time to present their ad to that consumer. It happens in microseconds - and can be tightly targeted (from location to demographic, to context, etc.).
Programmatic is highly sophisticated and super smart. In theory, ads are only presented to people who fit precisely with the target profile, making your advertising ROMI exceptionally good. But, there have been many reports questioning the value - some saying that as little as 20 cents from every dollar is reaching the media, the rest being the costs of precise micro-targeting.
We don’t believe that micro-targeting works. The issue here is not programmatic; it’s targeting.
Programmatic is here to stay and can only get better and better. Like all mass media, it requires a solid strategic approach, an understanding of the objectives and a focus on meaningful results - plus a finely attuned and skilled planner/buyer.