Programmatic advertising has the potential to improve the effectiveness of mobile ads while also enabling a broader evolution of the advertising industry away from campaign-centric strategies towards real-time content, executives at technology platform provider PubMatic state.
In its 2015 Programmatic Advertising Outlook report, PubMatic VP of emerging solutions Heather Menery said programmatic technology is increasingly being used in mobile advertising, as the company predicted the number of mobile ads bought using the technology will grow from an estimated 68% in 2014 to 88% in 2017.
Programmatic advertising technology, the company explains, is the use of technology to automate the buying and selling workflows in media.
Menery argues that the technology can improve the effectiveness of mobile advertising, where the “biggest mistake marketers can make is to overlook how deeply personal mobile technology is.”
Mobile advertising “must do a much better job than other channels of weaving itself seamlessly into the user interaction,” as a result, Menery adds.
Programmatic technology offers publishers the “choice and flexibility to develop mobile strategies that respect the user and monetize well – and to adapt those strategies in real time based on their success (or lack thereof),” Menery said.
When combined with Real Time Bidding (RTB) technology, the approach can help marketers find the right audience and develop a strategy to reach them in “appropriate and impactful ways.” Publishers can also use programmatic to control which adverts are displayed in applications, with RTB allowing “for the more strategic and precise targeting necessary to get the right mobile impressions.”
Rajeev Goel, PubMatic co-founder and CEO, said the move into mobile advertising is just one part of a programmatic push beyond transactions and RTB into new ad formats including “video, native and audio.”
Despite the spread of programmatic technology to new ad formats, PubMatic co-founder and CTO Anand Das said there are still hurdles to achieving the full potential of the technology.
Advertisers and publishers need new tools to help them manage and understand an influx of real-time data and insights that will be provided by programmatic technology, he noted. Lack of such tools is “impeding the ability for advertisers and publishers to understand the performance and potential of their programmatic investments.”
Das says programmatic is the “epitome of ‘big data’” in that the technology generates an “unprecedented amount of detailed knowledge about the reach and effectiveness of media buys.” While the scale of the data is beyond human ability to process it, Das notes it is “increasingly possible for machines to comb through all this data and produce insights and guidance of a quality approaching that of an expert human.”
The CTO predicts that 2015 will see the industry shift from “current information-based reporting and analytics to tools that use artificial intelligence to combine forecasting and recommendations based on past trends – in other words, a shift from descriptive to prescriptive analytics and reporting.”