Post by Heather Kollme, Senior Media Manager and Ashley Smith, Senior Media Manager
According to eMarketer, US digital display ad spending is expected to surpass Paid Search in 2016 for the first time. The categories of “Video,” “Sponsorships,” “Rich Media” and “Banners and Other” combined will account for the largest share of digital ad spending: 47.9%, worth $32.17 billion.
Additionally, eMarketer predicts that this year, more than two-thirds of all digital display advertising will be purchased programmatically, with mobile as the main component driving growth within programmatic ad spending.
With the rise of display ad spending, advertisers should consider the benefits of running their remarketing and upper-funnel display tactics programmatically. Programmatic display ad buying yields to improved operational efficiencies and increased scale/reach via real-time bidding capabilities. Additionally, the availability of ad inventory is greater through a DSP (Demand Side Platform), allowing advertisers to purchase ad space from one platform, which has access to several exchanges, versus the search engines which generally only have access to one.
A few Performics clients that have switched display campaigns from a platform like GDN or Gemini to a DSP have seen performance increases due to:
BENEFITS of PROGRAMMATIC
Algorithms look at dozens of data points from the bid request as well as historical cookie/device ID data to determine a user’s value to a campaign. Algorithms determine the bid price, bought as a CPM, a brand should pay for an impression, based on the likelihood it will result in a conversion when analyzing historical conversion data. These improved efficiencies occurred for a Performics client when transitioning from Google’s AdWords platform to DSP DoubleClick Bid Manager and leveraging ad exchanges beyond just Google’s: 555% increase in impressions (scalability and reach) and a 377% increase in conversions (view through + post click).
Managing campaigns within a DSP allows for much more extensive and efficient capabilities to hone in to a target audience. Using 3rd party or a DSP’s proprietary data to track and optimize against viewability metrics and fraudulent activity ensures more impressions are being seen by consumers, which leads to better brand exposure, more accurate reach and frequency analysis and, of course, a more efficient campaign. Beyond having the capability to monitor viewability and fraudulent activity within DSPs, the tactical offerings across these user interfaces tend to be much more exhaustive than those through Networks (including GDN and Yahoo) or Publisher Direct.
To properly replenish search and remarketing user pools, it’s imperative to launch and scale out mid- and upper-funnel tactics to reach relevant users and drive them down the path to conversion. Post-transition to programmatic media buying, a Performics client saw that of all 12 display tactics running, the run-of-exchanges tactic and remarketing were the most efficient from a cost-per perspective and drove the highest amount of conversions. Other unique targeting capabilities that allow brands to reach an audience in a smarter, more efficient way include:
As programmatic continues to be top-of-mind and accounts for more of the digital spending market share, the benefits and opportunities of running programmatic through a DSP are important to consider for your media planning purposes.
To learn more about programmatic media buying, contact your Performics account team today.