Programmatic is arguably one of the biggest developments in the digital advertising space. When it comes to video advertising, programmatic is beginning to take off, with programmatic video ad sales in EU-5 reaching €226m in 2014, according to eMarketer, and expected to soar 63.5% this year to reach €369m by the end of 2015.
Advertisers and agencies are adopting programmatic quickly. Yet, despite being the Association of National Advertisers’ (ANA) marketing word of the year in 2014, more than half of marketers still don’t understand programmatic well enough to implement it.
So, to put a clearer lens on programmatic advertising, let’s explain what it is and discuss some of the key benefits it delivers to advertisers.
Simply put, programmatic refers to the use of software to automate the purchase of digital advertising. Fundamentally, programmatic advertising lets advertisers make their video advertising investments work harder for them by allowing them to work smarter, faster and more efficiently. Efficiency and efficacy are why programmatic advertising is so effective. Programmatic advertising helps marketers reach the precise audiences they seek across screens as efficiently as possible.