5 Lion Experts’ Bytes
5 Key Programmatic Advertising Considerations for Rapid Growth in 2020
1. Artificial Intelligence in Marketing
Artificial intelligence in marketing is a rapidly growing space. The abundance of data enables marketers to target the right people with the right message, on the right channel and device, at the right time. Artificial Intelligence and Machine Learning process massive volumes of data to recognize patterns, predict outcomes and recommend the best course of action for each individual customer to drive them further down the road to purchase. Along with scale and speed unmatched by humans, AI also brings intelligence to the marketing process.
Marketers will use AI to analyze consumer behavior in real-time across multiple data points, such as demographics, location, behavior, device, browsing history and more. AI maps this data with ad metrics to identify where to place ads for optimum results. This leads to higher overall ad effectiveness, reducing the cost of acquiring customers.
2. The Power of Digital Out of Home
One of the oldest advertising channels, Out of Home advertising is slowly being overtaken by digital OOH (DOOH). When combined with mobile geolocation data, it enables marketers to drive conversions in the offline world.
Major players in the market are already able to estimate audience sizes for reaching relevant audiences with ads at places these people are likely to be present in. Programmatic planning of DOOH will enhance efficiency in the OOH buying space, providing measurable outcomes for marketers.
3. Personalization in Advertising
Millennials and Gen Z are currently two of the biggest demographics for advertisers, and both love customization. As this audience becomes larger, personalization in advertising becomes increasingly important along with more segmenting, targeting and audience management tactics.
The massive amounts of data now available to marketers allow for the use of dynamic creatives which change as per user interest and behavior, based on metrics like time, demographics, location etc.
Together with AI-based predictive modeling, programmatic adtech is able to serve more targeted messages in the right place at the right time.
4. User behavior shifts from traditional channels towards connected TV and digital radio
There is a huge shift from the cable TV of our childhood towards over-the-top services such as iFlix, Netflix, Amazon Prime etc. via the internet, especially when it comes to millennials and Gen Z. While this shift is underway, programmatic advertising needs to ensure that marketers achieve the best possible outcomes.
Programmatic TV will gain more mileage for its data-driven approach, with video being consumed across connected devices. Similarly, programmatic audio is also showing strong growth, with apps such as Spotify and Soundcloud seeing increased user engagement.
5. Omnichannel or integrated programmatic is the way to go
To convey a single, meaningful brand message across multiple touchpoints like smartphones, computers, TVs, tablets etc. advertisers are seeking to adopt an omnichannel approach. Using programmatic ad tech, marketers can customize an ad to work on different devices and platforms. This allows marketers to cater to the ever-changing consumer behavior, while allowing for greater effectiveness and efficiency in the ad buying process.
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About this series: 5 Lion Experts’ Byte is a series where Lion & Lion experts share tips and insights on different aspects of the ever-evolving marketing landscape, from social media, creative, strategy to digital marketing.