pro·gram·mat·ic adjective /,prōɡrəˈmatik/: the most popular word in media
These four syllables can make marketers all over the world swoon, while simultaneously muddying their minds. This is the future of our industry, but it is already here. Proportional amounts of optimism and confusion surround programmatic media buying. And of course…there is an entire dictionary of abbreviations in the programmatic space:
· ATD (Agency Trading Desk)
· DMP (Data Management Platform)
· DSP (Demand Side Platform)
· RTB (Real-Time Bidding)
· SSP (Supply Side Platform)
…LOL! But, I bet you understand all of those terms, right? You’re so savvy, Mr. Media Planner! Your new offerings are so impressive, Ms. Media Vendor!
If you put a group of media professionals in a room together and asked what “programmatic” meant to them, you would get a slew of differing answers. In fact, AdExchanger did this with several industry executives.
A: “The use of technology to automate processes and the use of math to improve results.” – Joe Zawadzki, CEO, MediaMath
A: “Programmatic selling is just a fancy way of talking about automation. Simply put, it’s taking similar selling rules that a publisher would give to their direct sales team and having computers automate and enforce them electronically.” – Frank Addante, CEO, Rubicon Project
Programmatic technologies allow an ad buy to be processed through computers. But don’t worry, the machines haven’t completely taken over yet. According to Ad Age’s “The CMO’s Guide to Programmatic Buying,” Interpublic Group’s Magna Global projected programmatic spending will reach $9.8 billion in the U.S. this year. This makes up about 20% of the overall digital ad market. In order for publishers and agencies to really make a programmatic dent in the ad budgets of brands, these technologies have to be integrated into other forms of media, like our old pals TV and radio. Guess what? It’s happening!
AOL’s Adap.tv will allow advertisers to combine television campaign objectives with audience data available from Nielsen and Rentrak for automated recommendations of where the campaign would run and with what budget. In line with a recent MediaPost article, Adap.TV will have avails from nearly 100 cable networks, with the ability to reach nearly 100 million U.S. households. The article states that “Adap.tv’s offering is programmatic in the sense that it automates large data sets – such as first-party data and the Nielsen and Rentrak data – and (is) running that data against campaign objectives. To be clear, there is no real-time bidding (RTB) taking place.”
One of the cable networks that will offer linear TV space through programmatic buying is Cox Media. Cox will use a platform named Clypd to sell automated national inventory through demand-side platforms. This will give advertisers the ability to order TV inventory against a certain demo (for example, W25-54 who are mothers) using third party data targeting. These commercials will be served through set-top boxes to households that fit the demo, as a cross-device extension to their digital video buy. NBCUniversal is also playing ball, making unsold inventory available through exchanges (Will Programmatic Advertising Take Over TV?).
It’s apparent that the automation of buying and selling video inventory will help to bring a new opportunities to marketing through television. Every day, the media business take steps forward, making smarter and more insightful decisions to connect brands with their future customers. Have no fear, media buyers and sellers! Your jobs are safe. While this technology will certainly take away some manual aspects of our jobs, there will always be a need for humans to maintain relationships and interpret the data.