Programmatic and native advertising are sub-set of content marketing. Both of them help to build trust and engagement with customers and potential customers by content. In this blog, I will discuss about Programmatic and Native Advertising, and its benefits to businesses.
What is Programmatic?
Programmatic is a common day term but very few people understand it. It is a transformation (transition) to a new generation of online advertising. In short, programmatic is just a fancy new term to define automated media buys. Billions of dollars have been invested and bet on that transition.
Do you remember the last time you buy an airline ticket through an agent, hotel reservations via phone or through a travel agent? To me, I remember the last time I bought airline ticket through an agent was 5 years ago. From 2010 until now, I prefer to purchase airline tickets online, such as Expedia, Cheapair, Kayak, and etc. Hotel reservations, and booking airline tickets online are super easy and more convenient than ever nowadays. Over the past decade, billions of dollars have been invested and bet on the advertising market will undergo a shift as purchasing airline tickets or hotel reservations.
Imagination a time when you adopt a software platform and run smoothly every ad! Just through a few clicks, your ad will appear on Youtube, Facebook, and the other Ad Network. You will save a lot of time in gathering data, aggregating information, reporting, and so on. Everything is in one place. When everything is automated, the cost will be cheaper. The heavy workload on the data will be released, so marketers will focus on creative activities only.
With programmatic ad buying, marketers are able to purchase specific ad spots on webpages that will be seen by their exact target customers in real-time.
According to Adweek, they defined Programmatic:
Programmatic is a catchall term that many people are using to categorize everything from behavioral and intent-based targeting to real-time bidding and exchange-based buying of inventory,” says Peter Naylor, former evp at NBCUniversal. “Programmatic is advertising’s newer, better mousetrap.
How does it work?
Programmatic is simply automatic program (program + automatic). The ads which are bought through auction by computers, commonly known as RTB (real-time Bidding). This is just a way to buy advertising automatic (programmatic). This term covers a range of technologies enables automated inventory purchasing, appeared advertising (placement), optimal efficiency instead of booking ad through agency, calling, meeting and faxing. Through automatic technology, advertisers can buy ads as the way they purchase on Amazon or eBay auctions. It’s the method by which all advertisements will come to be bought and sold like search ads on Google—auction based, with the buyer paying whatever price an ad is worth at a given moment. It’s buying specific audiences using lots of data to figure out the right ad, the right person, the right time. Therefore, programmatic is more efficient to reach consumers than traditional ad buying.
A new report from BI Intelligence finds that real-time bidding (RTB), a key piece of the programmatic ecosystem, will account for over $18.2 billion in U.S. digital ad revenues in 2018, up from just $3.1 billion in 2013.
Despite of the fast growing of digital ad sales, I do not believe that programmactic can replace entirely traditional ad buying, because it’s just a part of online advertising.
What is Native Advertising?
From the second half of 2012, a new term was born named Natural Advertising (Native Advertising) and quickly is considered the new trend of marketing. According to Wikipedia definition, Native advertising is a form of online advertising that matches the form and function of the platform on which it appears. For example, an article written by an advertiser to promote their product, but using the same form as an article written by the editorial staff. Formats for native advertising include promoted videos, images, articles, commentary, music, podcasts, and other media. Many people think that native advertising is new form of advertising to reach customers, who hate being interrupted by traditional advertising. To me, native advertising is just an old way of advertising, but it is worn in a “new custom”, which is called Internet. Nevertheless, I do not deny the benefits of native advertising. With the “new custom” and some tactics, marketers can make viewers experience native advertising as watching a normal content, but very interesting, relevant and attractive content.
Why Go Native?
- Traditional Ads ways are annoying customers. With the Native Ads, customers can scroll past them if they’re not interested.
- Native ads get attention. This will leads to more clicks through rate and conversion rates.
- They Drive Purchases: Native ads registered 18% higher lift in purchase intent than banner ads.
- Native ads are transparent to the user.
- Native Ads Know Their Audiences.
- Great For Branding: 97% of mobile media buyers report that native ads were very or somewhat effective at achieving branding goals.
- They are easy to share.
Although Native Ads offer many benefits to businesses, there are a lot of difficulties and challenges to build effective Native Ads.
- Ad Quality – native advertising requires more and better ads, and this is a real challenge for brands and their agencies
- Ad Avoidance – if we fail to give them great creative, consumers will learn to avoid these new ads, and “banner blindness” will become “native blindness”
- Transparency – native ads placed in the content well must be clearly labeled as such or we will lose consumer trust
- Social Fatigue – today, native ads are being poured into every form of social media, and this could easily lead to fatigue and avoidance
- Scale – while marketers want brilliant creative, they also need this at scale, and it’s a challenge to deliver both in native today
In conclusion, programmatic and native advertising are the current and future trend of paid advertising. The technology just change very fast. As digital marketers, we have to update regularly to maximize our marketing strategies. If you don’t want to miss any new releasing digital marketing techniques, following my blog to keep up with the times!