Through precise knowledge of purchase intentions and their programmatic use, it is possible to efficiently conduct online marketing for e-commerce, including in display advertising, and to achieve competitive advantages for your own company. This allows retailers to target potential new and existing customers in a targeted and individual manner with suitable ads, i.e. target.
What does programmatic advertising do?
Various data flows into the process, which may include, for example, the interests or purchase intentions of the respective user. Since this type of advertising delivery is based on a bidding process, the advertiser can determine for each contact what price they are willing to invest. As a result, advertising can not only be controlled more precisely, but also more cost-effectively. Currently, this is primarily used to deliver display advertising, i.e. banner advertising including online video ads, as well as social media advertising. Programmatic advertising is recording very high growth rates: It is estimated that over two billion euros will be invested in this type of advertising in Germany alone in 2017. In the near future, it will also be possible to book TV, radio and other channels such as outdoor advertising via programmatic channels.
How is the success of programmatic campaigns measured?
Unlike search engine or email marketing, display advertising has a strong indirect effect. Very few users click on banners — and these users are often not the ones who generate significant sales. Rather, the typical customer journey is such that a potential customer takes advantage of the advertiser's offer and — in the sense of an impetus from several advertising contacts — in the event of specific interest (later) goes on to search for further product information. In order to adequately take this relationship of effect into account, attribution systems are used in tracking. These measure all online contacts a potential customer has with the brand or product and are in some cases also able to include — at least approximately — offline contacts (such as TV or print). Within an attribution model, the contact points are assigned individual values with regard to the success of the measure, so that it is easy to say that, for example, search engine marketing contributed 40 percent of the generated revenue, the programmatic campaign a further 40 percent, etc.
What is the role of predictive analytics?
The respective KPIs (Key Performance Indicators) for this analysis must be defined by the online marketing manager. In addition to selecting the technology, the other challenge of implementing attribution lies in adjusting the various parameters with which the models are controlled in the company. The aim of this procedure is to optimize the distribution of budgets within online channels and the management of the corresponding marketing measures — continuously and as dynamically as possible. Complex projections based on various mathematical theories are used. However, the results only allow retrospective — albeit very timely — analysis. It is therefore necessary to regularly make your own forecasts from the current results of attribution in order to focus the management of online marketing on the most promising potential. Predictive analyses are also used in the specific programmatic approach of potential customers within the target group. The bookable target group profiles contain statements about the expected buying behavior of users (so-called intent data) and are therefore highly relevant for retailers in particular, as users do not have to first enter a search, but their actual interests are already “known”. It is important to emphasize that, for data protection reasons, no specific personal data is available, but only anonymous cookie information, as sensitive categories cannot of course be used for advertising purposes (e.g. in the health sector) and that the user can object to behavioural advertising at any time.
How do I make use of programmatic advertising?
Tracking is usually carried out by the advertiser in connection with existing marketing activities and ideally already offers the opportunity to take attribution models into account. With the exception of a few large advertisers, full, direct access to programmatic campaign booking is usually not available (unlike in search engine marketing), but is implemented via external partners (trading desks). Simple self-booking tools as an alternative — for self-directed programmatic advertising — often have a significantly reduced range of functions, as the complexity in the background is very high. Due to the large number of decisions to be made as part of the bidding process, millions of queries are made every second. A trading desk provides access to the relevant systems, connected advertising inventories and data sources, and takes care of campaign planning & management. Through support in key figure analysis, strategic recommendations for action can be made so that display advertising, search engine marketing and other channels are coordinated in the best possible way and contribute to each other.
This post was first posted at Onlinehänderler-news.de published.
