Programmatic buying has been the biggest industry buzzword for the past few years. According to numerous estimates and studies, investing in programmatic buying will skyrocket globally. Why is that? And what exactly does programmatic buying help you achieve in terms of results? We've listed 9 key things every CMO should know about programmatic buying.

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9 things every CMO should understand about
Programmatic buying

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Programmatic buying
has been the biggest industry buzzword for the past few
years. According to numerous estimatesand studies,
investing in programmatic buying will skyrocket globally.
Why is that? And what exactly does programmatic buying
help you achieve in terms of results?
Here are the 9 facts about it
you should be aware of.

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Programmatic buying
revolutionises digital advertising.
In its simplest form, it is automated buying and selling of advertising. This means the
processes on both sides of the table are faster, simpler and much more efficient.
Through programmatic buying you can effectively reach the right person at the right
moment with a relevant ad and it removes all the time-consuming processes that
once gave you headaches.

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You should be doing it.
In Finland, we just witnessed a 350 % year over year growth in programmatic
buying. In US, the share of programmatic will by the end of the year reach over 50 %
of all digital advertising except search.
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It is based on data.
Programmatic buying allows media buyers to evaluate media based on various data
sources, bid on and purchase ad inventory on an impression-by-impression basis.
This means that all actions are based on data and algorithms instead of free
lunches, conventions and gut feeling.
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Real-time bidding (RTB) is the
backbone of programmatic buying.
RTB means that prices change upon each auction held for every single ad impression on
an impression by impression basis. The idea is to only buy the impressions that will most
likely deliver the wanted result – and all this is done in auctions that happen in
milliseconds.
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It is not only about
technological innovations.
Programmatic buying is not just a technological leap and it requires continuous planning,
measuring and optimization. It requires a specialist skill set and a result-oriented
workflow. In practice this means that the results can not be bought, someone has to
sweat for them.
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It helps to reach
the target audience effectively in all
phases of the customer journey.
Programmatic buying enables high level personalisationand targeting by making it
possible to buy ad impressions matching that person’s particular situation in particular
stage of customer journey. By integrating display advertising with all other digital
marketing activities and your own data, it is possible to gain even deeper understanding
of potential customer journeys and generate better results from all your digital channels.
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It enables a 100 %
transparent pricing model.
At its best, you will know exactly what you are paying for and where all of that money
has been spent: through what actions, by which tools, in which exchanges and websites
etc. This is why you can always demand complete transparency from your partners.
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Digital advertising is in chaos –
but it brings you benefit.
Numerous channels, many devices, unlimited amount of data and forever fragmenting
target audiences bring countless new challenges to a marketer. This is not something to
be afraid of but rather something you must accept and utilize all this to your benefit.
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It’s not just display ads –
Soon it is possible to serve ads and content tailored to an individual customer
journey in all digital channel from desktop and mobile to TV spots and giant
billboards.
we are heading from programmatic buying of display advertising
to programmatic buying of OOH and TV advertising.
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Overall, programmatic buying will forever change advertising.
While display ads were once blunt tools, programmatic buying has honed
them into precision instruments with a capability to generate extreme cost-
efficiency and unforeseen results, if utilized properly.

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Author:
Anssi Peltokangas
COO of P+SBD
P+SBD combines digital
strategicexcellence with
programmatic media trading,
marketing automation and
digital design to operate and
continuouslyoptimize our clients
digital execution in real-time,
across all channels. Bought,
ownedor earned.
P+SBD is a member of
Marketing Clinic Partners.
For more information:
Anssi Peltokangas
COO of P+SBD
anssi.peltokangas@psbd.fi
psbd.fi
Catharina Stackelberg
CEO of Marketing Clinic Partners
catharina.stackelberg@marketingclinicpartners.com
marketingclinicpartners.com

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