According to Zenith Media, 65% of the money spent on digital advertising in 2019 was consumed by programmatic. In 2022, advertisers are expected to grow their programmatic ad spending by 25.8% to touch nearly $80 billion. This translates into programmatic ads comprising 72% of all digital displays and 58% of all advertising spending.
A programmatic media or advertising platform offers all the desired benefits for its advertising clients. This includes saving time, lesser human effort, increased ROI, and eliminating non-human traffic. With the advent of the programmatic platform, the future of advertising is already upon us. By 2023, U.S companies are projected to increase their spending on programmatic video advertising to close to $75 billion.
To increase their ad revenue, digital ad publishers have a variety of programmatic ad platforms to choose from.
What are the must-have features to look for on programmatic media platforms? Here’s a rundown of five of the most exciting ones.
5 Essential Features of Programmatic Advertising Platforms
Traditional display ads are no longer sufficient for brands to create a positive market impact in the new normal. Advertisers need a deeper understanding of customer preferences to leverage a higher ROI.
To that end, here are five essential features of Programmatic Ad platforms that can drive higher customer engagement and ad revenues:
1. Digital Out-Of-Home or DOOH
Out-Of-Home (OOH) advertising evolved from “traditional” OOH advertising in public spaces to the digital medium. Digital OOH (or DOOH) in programmatic ad platforms is a futuristic feature that can be adaptable to change and include interactive elements.
Digital OOH can create high-impact advertising on in-store displays and OOH screens. Here is how the DOOH features benefit:
- Wide network access that can generate more weekly impressions
- Measurable data insights into the leading digital screens with the highest audience base
- Contextual ad deployments based on weather conditions, day & time, and store proximity
- Real-time integration with supply-side and demand-side advertising platforms
- Accurate measurement of returns on ad investment using ROAS, foot traffic, and brand awareness
- Scalability that enables advertisers to increase their ad displays dynamically based on customer response
2. Connected TV (CTV)
Globally, younger people are moving away from the “traditional” cable television toward over-the-top (or OTT) platforms. Pixelate reports that 72% of American households are now reachable through OTT and Connected TV (or CTV).
Conducted in New York City, the Advertising Week event predicted that most TV ad spending would happen through programmatic advertising or CTV in the next three years. For instance, CTV advertising enabled Colgate to increase its audience reach by 58%.
Here’s how OTT or CTV benefit:
- Global reach to a larger audience consuming content on different devices
- Improved visibility rate of 93.3%, which is better than other programmatic ads
- Visually attractive ad formats that can engage younger consumers
3. Programmatic TV
Programmatic (or Live) TV is one feature changing the dynamics of TV advertising. While traditional TV advertising has worked so far, it followed a set format of scheduling the ad break much before the live TV program.
Programmatic TV ads are sold in real-time based on who the viewers are and the content they are watching.
As such, programmatic TV allows brand advertisers to:
- Automate their TV ad buying process.
- Achieve data-enabled targeting of their ad consumers.
- Measure the effectiveness of their ad campaigns across multiple channels.
- Unify their ad campaigns for 77% of TV viewers who watch live TV content on their laptops, smartphones, or tablets.
- Optimize and improve their ads with real-time performance metrics.
4. Direct Publisher Partnerships
According to eMarketer, U.S advertisers have spent over 40% more each year on programmatic display ads since 2016.
Also referred to as direct programmatic advertising, this is the process where advertisers can now buy ads directly from the leading publishers. Among the main benefits, direct publisher partnerships enable advertisers to display their ads currently on the publisher’s web page.
How does this benefit the advertising company? They can manage their ad spending efficiently. Besides, publishers can also control their platform costs and incoming traffic. Here are some more benefits for both publishers and advertisers:
- Advertisers can now reach out to a niche audience
- Publishers can access large volumes of first-party data through subscriptions and newsletters
- Publishers can create customized ad formats to suit a particular campaign
5. Data Analytics
With access to real-time data, stakeholders seek complete visibility of the performance of their programmatic ads. Using data analytics, they can achieve a level of transparency not available with other forms of advertising. For instance, publishers must know the “type” of ad inventory that is getting sold quickly.
Real-time data analysis provides valuable insights into revenue generation or the modifications needed to maximize ad returns. Besides valuable data insights, programmatic advertising platforms must ensure total data security and privacy, ensuring user data is not lost or misused.
With the right features, a programming advertising platform enables digital agencies to define and target their audience base. Powered by AI and machine learning technologies, programmatic advertising platforms are the future of digital advertising.
At Aroscop, we work with various digital agencies and help them leverage the power of data science and programmatic advertising. Our future-ready programmatic advertising platform enables you to achieve improved ROI on your ad campaigns. Backed by data science, we have integrated programmatic ad servings, data analytics, and RTB, along with AI and machine learning.
Do you want to achieve your online advertising goals? We can help you reach that. Request a demo of our programmatic advertising technology platform.