How Programmatic Advertising Can Alleviate Your Companies Top Pain Points
Programmatic is the automated buying and selling of online media, using technology to improve
cost efficiency and media performance for advertisers. The practice uses first and third-party
data to more precisely reach the right audience, in the right context, with the right message
and at the right time. Last year programmatic ad spend surpassed £3bn according to eMarketer,
making up 79% of all UK digital display ad spend and is expected to reach 84.5% in 2019.
As more and more CMOs strive to create efficiency at scale, programmatic presents an unlikely
remedy to the CMO’s pain points. Whilst programmatic focuses on the who, the where and when,
the creative focuses on the engagement. Together, the two place the customer at the heart of all
Pain Point 1
The study revealed that 46% of CMOs devote more than two-thirds of their marketing budget to new customer acquisition. Whilst budgets have predominantly always been focused on customer acquisition, now budget allocation is being viewed more holistically across the entire customer journey.
Raising consumer awareness and driving new customers to your brand is an essential part of the customer journey and CMOs will always look for innovative ways to address the challenge.
Programmatic Advertising Solution
Programmatic targeting enables realtime marketing in the most relevant and efficient way possible across devices and platforms. With the advances in automation, sophisticated targeting capabilities and more robust measurement solutions, there are a number of ways upper-funnel programmatic campaigns can be effectively realised using programmatic solutions.
According to a recent study conducted by Forrester Consulting on The Total Economic Impact™ Of LiveRamp Connect Look-alike modelling is just one example where you can grow your audience base from your existing CRM data. By modelling benchmark characteristics of your best customers, you can reach new and relevant prospects.
The ability to cast a tighter net and granularly target consumers based on their location can be an alluring benefit of programmatic. For example, a restaurant chain’s goal is to increase footfall to its struggling restaurants across multiple regions where there are large student populations. They run a series of promotional offers appealing to students
across their marketing channels.
Using programmatic they can implement demographic targeting of students and layer in contextual third-party data categories such as college life, music and food etc. They can efficiently achieve highly relevant and targeted ads within target catchment areas.
Contextual advertising is essentially aligning content within an ad to the context of the page the consumer is viewing. The tactic is a top of the funnel activity and is a great way to start showing relevant content from the first touch. One example would be if a travel brand wanted to align destinations shown within their ad to the destination being covered on the page where the ad is served. The travel brand could combine rich data sources pulling in location, weather, time of day, day of week or combine 3rd party data to improve relevancy and create engaging and sophisticated ad creative. If the travel brand wanted to push last minute holidays in Malaga, and the region was enjoying 30 degree temperatures, perhaps that is an
element they would want to highlight.
The brand could go a step further and develop a story captivating their audience and delivering them key prompts to guide
them along the brand’s journey through the use of sequential advertising. The content within the ad is refined each time an ad is served to a consumer based on either predefined rules, interactions, or data points such as weather, location or behavioural changes. The travel brand could even target specific postcodes, areas or regions by layering in geo-contextual targeting for an even more granular approach.
Pain Point 2
It costs 5x more to attract a new customer than it does to retain an existing one. (Lee Resources 2010). Therefore, losing your customers after spending a large proportion of your budget to acquire them is out of the question.
In todays digital landscape, the customer needs to be at the heart of your operation. They are faced with unlimited choices
which have “eroded traditional product and service advantages, making customer experience the new competitive battlefield” according to Jake Sorofman, research director at Gartner. A key area for marketers to focus on is loyalty marketing – the new mandate for CMOs as the customer journey takes more precedence than ever.
Senior marketers are tasked with providing engaging experiences to customers with contextual relevance across all touchpoints to prevent churn and build loyalty.
Programmatic Advertising Solution
Marketing executives must be able to interrogate the customer data coming into their organisation, and house it in a
centralised location to help market relevant experiences to their customers.
Over 90% of brands will be using a DMP (Data Management Platform) by 2018, according to a study from ExchangeWire
and Weborama. DMPs are the natural next step to harnessing data across touchpoints, and not just digital or first-party data for that matter. They can bring you value across the entire customer journey.
DMPs are far more than just a database, they stitch together user ids to form a set of attributes to make up an audience that
can inform your entire marketing strategy. Predominantly the main purpose of a DMP is to target audiences. However, when
focusing on customer retention you can optimise the brand experience by unlocking insights from your DMP about your existing customers. You can create high-performing customer segments and determine the value of your customers through setting up loyalty tiers. Or you can build segments for high-churn groups and upsell your products to customers at the right point in their journey.