Liza Pappas, Senior Account Executive for Ovia Insights, shares her thoughts on how ad buyers can achieve their goals with personalized, targeted ad campaigns.
About 39% of total ad budget in the U.S. is allocated to programmatic advertising — double what was being spent in 2013. The increase in popularity makes sense: programmatic buying allows media agencies to target their core audience across the web through millions of inventory sources, versus direct-to-site buying. It also provides quicker media executions at a lower cost and gives buyers more data for better decision making.
However, it’s recently come to light that about 33.3% of all programmatic inventory clicks are fraudulent and only 25% of all “viewable” desktop ads have actually been seen. As statistics like this continue to emerge, brand managers are placing less importance on solely delivering turnkey performance at a low price. In fact, less than 10% of brand managers consider this a top priority.
Instead, expectations of a brand’s agency partners are focused on more intrinsic qualities such as strategy, creativity, and innovation. In order to meet these new goals, agencies should prioritize quality over quantity in their ad placements. By doing so, lifetime value and longevity of a brand will stand out in the eyes of consumers. Ad buyers can do three simple things to improve the quality of their ad placements and, as a result, the success of their campaigns:
Increase Your Personalization
The way that publishing platforms use (and abuse) data for advertising purposes is currently in the public eye. Brand managers should make sure to know where their niche targeting is coming from and in what environments their audiences are connecting with brands. Native advertising will continue to captivate people who are more likely to consider purchasing a product in a space they feel safe. Ninety-five percent of Ovia’s mobile users view us a trusted resource for product recommendations, and we’ll continue to provide curated, informative native ads to maintain that trust and build on our expert reputation.
Keep It Simple
Millennials might be constantly multitasking with a device in each hand, but that doesn’t mean your brand’s ad inventory should be as fragmented. Rather than exposing your audience to passive ads all across the web, invest in brand storytelling. Through first-to-market, channel-specific, and brand-safe environments, agencies can flourish with opportunities to create strong partnerships between brands and publishers.
Outbid The Competition
After almost a decade and millions of dollars being spent on programmatic, genuine insights have fallen flat. With omni-channel and self-serve advertising becoming more and more popular, programmatic buying no longer offers a competitive advantage. Strategy is determined more by algorithms and computing systems than people. Instead of raising bid costs on your buying platform, raise your expectations and find dynamic strategists who can think outside of the box.
Most importantly, know when to listen to your gut. Programmatic will never become totally extinct, and digital advertising will always be intertwined with data and automation in some way. But with the current media and advertising landscape, it’s time to start thinking about what’s working and what we need to use in moderation.