(Image credit to Leslie)
A big paradigm shift is already happening in the digital advertising space. The announcement of Google to introduce ‘Partner Select’ program, programmatic video ad buying for premium content, along with the reports that Procter & Gamble and American Express shifting their budgets (up to 70%) to programmatic are just couple recent examples on how programmatic is becoming mainstream.
Programmatic is not only a technological change. It is true to say that the machines are more effective in exchange businesses and can make split second decisions when it comes to which ad to serve. But the significant change is happening on the concept of media buying. Still many brands are targeting media, wanting to get the best spot from publishers to expose themselves to the consumer. Hence lengthy negotiations, media buying process is still popular and most of the buying is done like this. However, the programmatic enables a different type of buying: Intelligent Audience Targeting – that learns.
This might be the third phase in advertising. First modern era was the ‘Mad Man’ era. Second one started with the introduction of computers that enabled all kinds of analytics and measurement. Now, the artificial intelligence is finally bringing ‘big data’ into the play where machines analyzing the user on hundreds of parameter based on their holistic web experience (not just on one publisher) completely changes the capabilities of the brands to reach to the right people at the right time.
Programmatic buying, machine learning already proved itself in the last three years and many players stood out in the ad market place. DataXu, Rocketfuel, Turn, X+1, Media Math, BrightRoll (Video), Live Intent (Email) are few of them who are leading the revolution. The business models are simple. They offer two service levels, self service or managed. However, no new disruptive technology is without challenges. Transparency, trust issues and finding qualified talent to run campaigns with these complex algorithms are some of them to name.
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