The drivers for the broad adoption of programmatic are simple to understand, and similar globally. Brands and agencies use programmatic to increase marketing efficiency, helping them get more out of their budgets.
In the latest in our series covering the new Digital advertising ecosystem we look at best practices and emerging trends as programmatic goes global in Advertising Age’s Global Programmatic Survey, conducted for DataXu.
We talk to Matt Ware, Commercial Director APAC, at MediaMath about the three M’s – Mad Men, Math Men, and Maroon 5. Plus a little bit about programmatic.
DIA Hi Matt. How are you?
MW Hi Digital in Asia! Very well thanks.
DIA We’re big fans of Mad Men here at DIA. Can you explain how we got from the Mad Men era, to the Math Men era, and the key differences?
MW To the world’s first advertising agencies, the technology now available to help marketers would have seemed like something from a fantastical science fiction novel.
In reality, the latest technology is proving to be an essential business tool in delivering what has long been promised but never realised – true customer-centric marketing.
While these tools and new ways of working can seem complex and intimidating even to experienced agency hands and marketers, grasping the fundamentals and understanding how programmatic can help business is surprisingly simple.
DIA What are the most compelling benefits programmatic trading can offer advertisers?
MW The three key business advantages that programmatic can deliver are improved targeting, scale, and relevancy. Combining these elements with real-time decision-making across millions of ad-serving opportunities means a brand can lower its marketing costs while boosting its return on investment.
At the heart of the matter is data. Consumers are becoming more sophisticated in how they use devices – from desktops to tablets and mobiles – and when they want to research, review, and buy goods or services. Marketers can now access more data than ever before about this increasingly complicated consumer path to purchase.
DIA Tell us more about data driven advertising. We know that data is THE key component of marketing moving forward.
MW Data Driven Marketing and Advertising (DDMA) – a common acronym among agencies and networks – is powered by technology that analyses vast data sets and provides the algorithms that underpin programmatic buying. This approach to marketing strategy is attracting more and more investment.
According to research conducted among 3,000 marketing practitioners across 17 countries, almost two-thirds (63%) increased their investment in DDMA in 2014, and nearly three-quarters (73%) expect to increase their DDMA budget this year.
It is vital that companies invest in technology that can analyse their consumer data because without this information, their competitors will simply leave them behind. The technology enables data to be qualified and mined for insights that can help with audience segmentation and contextual targeting. Engaging ads can then be created to serve to potential customers. Finally, these ads must be tracked, measured, adjusted and tested again and again to achieve optimum performance.
DIA How can advertisers take their first steps into programmatic?
MW Many brands are now testing programmatic buying on small projects so they can learn more about the systems, before using the results to help convince the CEO or the board that more budget should be invested in automated trading. Some brands such as Mondelez and Procter & Gamble have already announced that a large chunk of media spend will now be traded programmatically.
DIA What does programmatic advertising mean for consumers?
MW Ultimately, programmatic trading allows clients to serve relevant advertising to the consumer via the appropriate channel or platform, and at the right time. It is customer-centric because it prevents the shopper from being bombarded with meaningless messages for products in which they have no interest. The idea is to create a truly personalised shopping experience.
The brand, client, and agency benefit from efficiencies of scale and accurate targeting, and there is less money wasted on trying to reach the potential consumer. A consumer who is happy with the messages he or she receives is more likely to buy the goods and services on offer. It’s a win-win all round.
DIA Thanks Matt. Finally, has anyone ever mentioned your resemblance to Maroon 5 lead singer Adam Levine?!
MW Thank you. The rock and roll stardom wasn’t enough for me, I find a career in programmatic far more exciting.
2015 promises to be an exciting year for Digital Marketing and Media in Asia. The core metrics won’t feel that different from 2014, but there will be increased focus in a number of areas, alongside raised expectations as Asia expands and matures from a Digital perspective.