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How Programmatic Native Advertising Has Changed Media Planning

Feb 10, 2016 / by StackAdapt



Every so often, an innovation is introduced that's so immense that it turns entire industries on their head. It happened in the 1980s with the advent of personal computing, in 2003 with the creation of 802.11g Wi-Fi, and it's happening again today with the rise of programmatic native advertising. 



Media planner plays an indispensable role in brand marketing. It’s they who determine the best combination of media to achieve a marketing campaign’s objectives. In doing so, they rely on a variety of data, such as size, frequency, and demographic information. A successful marketing campaign, regardless of specific objectives, is one in which the right message is delivered to the right people at the right time. 


With the rise of programmatic native advertising, media planning has been forever changed. In just a few short years, it's graduated from being an experimental technology to becoming a must-have for planners. 


Indeed, media planners today need to be equipped with expansive knowledge covering many different facets of the digital landscape. 



Reduced Risk of Testing New Ideas



Programmatic native advertising is undoubtedly more cost-efficient than previous methods of buying. And while this is, in itself, a benefit to planners, it also has the subtler advantage of giving them more room to experiment. Indeed, the cost of experimentation has fallen dramatically with programmatic native, so there's more scope and opportunity to test new ideas.


A few years ago, the cost of failure was high. A monthly buy or homepage takeover that didn’t achieve a brand’s objectives was a significant problem, irrespective of how much money a client was willing to spend. Because there are no upfront commitments in the open marketplace, the cost of testing is much lower. Put simply, if something doesn’t work, it can be switched off. This reduces the financial risk to brands, meaning they are more willing to test and be creativity with their media plans.


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According to the late Steve Jobs, creativity is just about connecting things: ‘When you ask creative people how they did something, they feel a little guilty because they didn’t really do it, they just saw something. It seemed obvious to them after a while’.


Programmatic native platforms, in automating the more manual elements of what planners do, are providing much-needed creativity to the industry. By enabling media players to trade intelligently and more efficiently, programmatic has encouraged the growth of a culture of creativity. The ultimately result: stronger yields and stronger performance.



Data Availability and Quality



Since it first emerged in the 1960s, media planning has remained relatively unchanged—at least a process. Planners perform a market analysis, establish media objectives, create a strategy using a mix of media channels, implement that strategy and then evaluate. Optimization, if ever necessary, would be done sporadically.


When performance of a campaign was down, planners would have to reach out to vendors by phone or e-mail, or interact with publishers to move placements around or eliminate them entirely. They didn’t typically have experience manipulating many optimization levers.


With programmatic advertising, particularly programmatic native advertising, direct solutions are at the planner’s fingertips. For example, if a native campaign is performing inefficiently, rather than having to deal with publishers or AdExchanges, a media planner can go directly into the platform (UI) to see if CPMs can be reduced or shut off a network that isn't driving engaged users


Because of this, media planners are today are responsible for taking more steps towards finding solutions to campaign problems. 


Moreover, planners are benefiting from the abundance of data that programmatic buying produces—data that can be continually fed into the media planning process, creating a detailed feedback loop.  This ensures that media planners have an accurate picture of what has previously worked well for a client at the start of a campaign.



Contextual Relevance


Speaking of data, one of programmatic native's biggest bounties is its ability to leverage data to target very selective audiences. Indeed, native platforms provide media planners with the ability to leverage first, second and third-party data, alowing them to drive great customer engagement per campaign. These data options allow planners to targeting the "right" audiences with the frequency and reach to meet their campaign goals.


This is one of the key advantages of programmatic native advertising: the ability to eliminate display waste. When done properly, native advertising can help planners serve ads only to users who are likely to perform a certain action.


How it works is data, including contextual targeting, geo-location, demography, device and buying behavior, are computed in an automated process. Through real-time bidding (RTB) technology, planners have the flexivility to buy inventory granularly and set different bids for different types of audiences. What this does it make it possible for media planners to engage with a very specific target group through their programmatically bought native ads.


With programmatic native, the personality combinations that can be targeted are endless. 



Over the next few years, programmatic native will become the default process for media planners. Why? Because the efficiencies for reaching the right audiences at scale make programmatic a no-brainer. Being able to offer cross-platform, targeted solutions is key for planners,  as is the ability to optimize campaigns and collect relevant data for future campaigns. For these reasons and more, programmatic native is taking center stage in the digital marketing landscape.




Topics: Blog Posts, Featured, News

Written by StackAdapt

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