South Africa, having already embraced this relatively new trend, is experiencing a steep learning curve that is supported by an increasing understanding and uptake of its benefits. However, there is still a lot of confusion around what PMB is exactly. One such misconception is that programmatic marketing is only about real time online bidding.
Programmatic is a term that includes everything from behavioural and intent-based targeting to real-time bidding and exchange-based buying of media inventory. More specifically, it provides a brand manager with the ability to take a specific ad or campaign, set parameters on where, when, how, and who will see it. It measures impressions online and sets the pricing for what the buyer is prepared to pay to an online publisher or SSP (Sales Side Platform) to market the product.
With access to many digital publishers, such as Google, a Demand Side Platform (DSP) uses computer algorithms to maximise access to the different publishers’ space inventory to provide the best pricing, and most accurate audience optimisation for the brand.
Using a variety of data partners, the SSP identifies and buys a custom exchange for the brand, and so Real Time Bidding (RTB) begins. The bidding takes place in milliseconds for every digital ad space on the page, based on the product’s previously set parameters and price limits. The winning bid serves their impression. The important differentiator here is that the brand is ultimately targeting people and not properties. Each impression retains a value.
Digital media management agencies, such as Atmosphere Orange, track and control a campaigns performance through weightings, placement, dynamic creative and positioning in order to get higher impressions, click through or conversion rates. This means that campaigns can be optimised and spend adjusted following consistent, accurate feedback from granular targeting tools.
Craig Utermark, CEO of Atmosphere Orange explains further: “We micro-manage the outcome of a campaign based on the data that we collect on a daily basis. Digital media’s dramatically shortened response time allows us more transparency and the flexibility to quantify campaign successes, or identify what is causing a campaign to fail and rectify the issue within a very short period of time. Working with such organic data the client is given a meaningful view into their target market which then triggers further creative adjustment and refinement. Digital media advertising is accelerating in South Africa, especially with CEO’s and CFO’s demanding more accountability for spend from their CMO’s.”
It is necessary that South African brand managers wanting to stay ahead of their game, start taking advantage of PMB’s efficiencies, targeted reach and accuracy of data across all media channels.
Guidelines for brand managers eager to get on board will require a shift from the traditional negotiation skills of a media buying professional towards more analytical and technical skills, which is where digital agencies like Atmosphere Orange come in. Their industry knowhow ensures that via reporting, brand managers pay attention to quality by constantly refining, targeting and optimising advertising media. In this way brand managers are assured of not making a poor purchase or paying for un-viewable advertisements.
Atmosphere Orange offers an induction process where brand marketers are given a customised insight into the power of programmatic marketing for their brand, which includes training, strategy, reporting and delivery of dedicated digital buyers.
The technological advancements, control, and cost efficiency gained through programmatic marketing is shaping the future of digital marketing. Use of programmatic advertising has grown 20% in the last six months and as much as 65% of global publishers now sell their ad space through networks, with the rest coming online fast.
For those still resisting the age of digital disruption, there is always the comfort of the bottom line to refer back to, with brands such as Kellogg’s, experiencing digital media ROIs of as much as six times. It’s clear why South African media strategists are making calculated decisions and embracing the shift to digital media advertising.