Updated: Mar 25, 2020
It's one of the hottest buzzwords in contemporary marketing, find out why it is relevant to Trinidad and Tobago business.
What is programmatic advertising?
Put simply, programmatic advertising is the automation of the advertising bid process which takes advantage of the technological advances in data collection and machine learning. It takes away the requests for proposals, tenders, quotes and human negotiation with smart algorithms deployed to determine the ideal timing and location to reach a target audience. Needless to say, an understanding programmatic advertising proves an essential tool to any advertiser seeking to make more efficient use of their advertising dollars. It facilitates easier targeting of market segments via the programming of advertisements on a geographic, demographic, psychographic and technographic basis.
Why should one be concerned with programmatic advertising?
Digital advertising has been on a meteoric ascension over the last few years and has even eclipsed spending on traditional means (such as television advertising) in North-America and Europe. In Trinidad and Tobago, digital advertising is growing at a rapid rate. Although spending on traditional channels such as newspapers and television may currently exceed spending through digital platforms, we can expect digital advertising to eclipse them as early as 2020. For current basic users of social media ads or search engine placements, changes in privacy regulation (such as GDPR) have continually caused disruptions and changes to the digital advertising industry landscape. We can expect increasing changes to regulation to accompany the growth in usage and so business should be prudent to stay abreast of such developments in digital advertising regulation.
Programmatic Advertising allows for better budget control and ad spend efficiency.
Most programmatic advertising is done via Real Time Bidding (RTB) which is essentially the purchase of online ad placements in an instantaneous online auction based on the deliverance of ads on a per impression basis. RTB facilitates a higher level of predictability as to the expected impressions which will be made and more opportunity to examine past ad campaigns for further optimisation of digital marketing efforts.
Being active on digital platforms has never been more important. Considering the rapid growth and wide proliferation of mobile devices and advancements in internet access in Trinidad and Tobago. Businesses would be remise to omit considering programmatic ads in their digital strategy. Marketing competition is migrating from the realm of traditional newspaper and tv ads to social media and search engine placements. Understanding the strengths and limitations of the available online channels is essential to a successful strategy. Importantly to note, digital advertising is not limited to the use of social media.
Consumer expectations of content are rapidly rising with audiences becoming increasingly segmented.
As more firms adopt digital strategies the landscape is becoming more competitive. Put simply, Trinbagonian customers are being served more ads, more directly by an increasing number of firms. The onus on these firms is therefore to ensure more focus goes into the development of effective marketing strategy and value delivery. Cutting through the crowd to making meaningful impressions is now more important than ever with customers having more access to choices and more visibility of competitors. It is also noteworthy that advances in the availability of design and illustration software also mean that consumer standards of content are steadily increasing the demands on advertisers to impress them.
Export is becoming increasingly important.
Developments in our economy have heralded an increasing focus on exports therefore making export marketing all the more important. The difficulties of overcoming geographic distance and cultural variances can be overcome with the use of digital marketing strategies and programmatic ads. For organisations seeking to sell their goods abroad there may be no better solution to reaching global audiences than a well developed digital marketing strategy.
To wrap up.
Trinidad and Tobago's local Digital advertising landscape is becoming increasingly competitive. To remain competitive businesses should consider developing or implementing a marketing strategy which leverages on programmatic advertising into 2019, whether that be with the aid of an agency or by developing the internal capacity. Changes in regulations regarding privacy (such as GDPR) will continue to disrupt and shape the future of the industry as its global growth continues. Increasing online competition, more segmentation and ever growing consumer expectations on marketers to produce higher quality content signal that digital advertising strategy will be a top priority for marketers seeking to excel into 2019.