Cookies make all this possible. As visitors land on a publisher’s page, a piece of code adds cookies to their browsers. They’re then included in audiences lists that can be retargeted with campaigns designed specifically for their audience. The power of RTB makes retargeting campaigns particularly powerful; these campaigns are highly targeted, heavily engaging, offer greater reach and all with lower overall campaign costs.
Other reasons to engage in retargeting include allowing to build an asset by capturing audience data, enhanced campaign performance and the ability to up-sell, cross-sell or onboard converted visitors.
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How are Publishers Getting Programmatic Wrong?
Many publishers are still getting programmatic wrong. These days, their involvement in the space is more or less mandatory — contingent on advertiser demand — but there are some important things they need to get right if they are going to make a successful go of this technology.
Programmatic is about much more than “two-dollar CPMs.” Publishers need to smarten up so they can educate their clients about what programmatic can do for them. It falls to the publishers given that the prevailing advertiser perception is programmatic is only for buying inexpensive impressions. People are important too. Publishers also need to understand that programmatic won’t cannibalize direct sales.
More premium ad units are needed in programmatic exchanges. Publishers shouldn’t be concerned about overusing high-impact ads. Finally, they need to better use their data and figure out how to make it make sense for their advertising partners.
Private Marketplaces, Programmatic Direct Not Just Fads
Spoiler alert: private marketplaces and programmatic direct aren’t going to go away anytime soon. The tea leaves are predicting that they’re here to stay. Recent projections from eMarketer indicated that programmatic ad spend will account for 63% of all display ad spend by 2016. The estimate also pointed the finger at private marketplaces and programmatic direct as the trading methods that’ll really take off in the coming years.
According to eMarketer’s projections, private marketplaces will shoot up from being 10% of all RTB spend in 2014 to 30% by 2016. The projections are much more staggering when it comes to programmatic direct channels, which eMarketer predicts will go from accounting for 8% of all programmatic ad spend in 2014 to 42% in 2016.
Together, the two, which now account for 10% of overall programmatic spend, will account for almost 60% in 2016, predicted the research firm.