Kristina Kasalova - Programmatic Account Manager

The Future of Programmatic Advertising with Kristina Kasalova

Programmatic Account Manager, Kristina Kasalova, recently spoke at the Global Academy of Digital Marketing’s (GADM), “Evolution of Programmatic” hosted by AppNexus. Alongside industry experts, Kristina discussed the future of programmatic by exploring the ways in which it’s evolved over the past five years, and useful stratgeies for brands to implement for the changes that lie ahead.

What do you see as the biggest barrier to programmatic advertising at the moment? And what is being done to progress past this?

Programmatic has become mainstream now which means a lot of simplifications and misunderstandings of the term are present among new users. There is still some misunderstanding that programmatic, or even more so, RTB, is an efficient but somewhat dodgy way of getting performance out of your display activity. For others, while this notion is no longer case, see programmatic as a singular answer for everything without understanding the underlying principles. Programmatic is a very wide term nowadays and we need to be clear about it, especially when someone is new to the concept.

Programmatic buys have evolved radically in recent months and we are now able to use them with confidence across all stages of the customer journey – awareness, research, branding, remarketing and re-engagement. All of the above use programmatic as a principle, however the execution is different, and it is the key to understanding the variability within the industry, and to finding the option which best suits your marketing goals and business objectives. A crucial piece is to understand the variety under the term “programmatic” and learn a bit about differences between the options.

What really differentiates programmatic today from programmatic 5 years ago?

A couple of years back, programmatic meant audience buys across sub-par quality inventory, using standardized flash creatives and broad data segments. Fortunately, this is no longer the case – first and third party data is much richer now, and allows us to target even niche audiences at particular stages of their customer journey. We can target from discovery, through research, and the consideration phases, all the way up to re-engagement, and keeping brand loyalty.
Inventory quality has improved significantly in only 2-3 years. This was driven both by publishers, who became savvy about opportunities of programmatic (preferred deals or programmatic guaranteed can be as profitable as traditional direct buys), and ad exchanges, who stepped up and started to monitor and filter poor inventory in their marketplaces. It was also picked up on by advertisers and agencies who started to use brand safety and viewability verification tools and hence, created demand for better quality inventory.

Creative options have grown as well, partially driven by wider use of an HTML5 format, although this was initially semi-forced onto advertisers by major players in the industry. HTML5 is more transparent and offers less heavy loading than flash files, which gives advertisers the opportunity to use more engaging and high-impact formats with embedded videos, or additional features (surveys, galleries, microsites, etc.). Publishers are also more open to accept various ad size formats through RTB, which provides more options for their creative ideas. Altogether, this means that is it easier than ever to create engaging ads in various formats.

Where do you think advertisers should really be spending their time and energy when it comes to their campaigns?

Data and creative. Marketers need to know their target audience and that’s when the owned data come in handy. Even advertisers who have little to no experience with display advertising almost certainly have data which can help them understand what their audience likes, and how to reach them more effectively. Insights from Google Analytics, from transactions on the site, PPC activity, or their CRM database, all of these can be used to inform the initial targeting profile or even multiple profiles. The initial statistics from existing data can be used in campaigns, tested and refined further with additional insights on user preferences and behavior. Using the data will help brands become more relevant to audiences and spend their budget more efficiently on the vast scale of inventory available in display. At later stages you can look into using third party data or build a custom data model through a data management platform, but always make sure you know what your goals are in terms of the data you have, want to collect, and need, for more refined targeting.

Think of creative as an online shop window. In many cases, users know nothing about the brand or product being advertised, hence, it is important that the creative is engaging, trustworthy and relevant for them. The relevancy is related to targeting and data to a high degree, but engagement and trustworthiness are the design factors. Creatives should prepare users for what they can expect on the website, and from the product or service. An interesting ad is more likely to spark attention and engage users, creating the desire to explore the product further. This only works if the ad is trusted. If the ad is not deemed trustworthy, why would they bother to come to the site and convert? So although flashy ads can spark attention, think about whether this is actually sending the message you want to the customer. As in a brick-and-mortar business, you might not get second chance to talk to the same user and convince them about your product, so having a trustworthy creative is crucial.

How can advertisers use data more effectively?

The most efficient use of data comes from a clear understanding of the objectives you want to achieve and being aware of the options available to you.

Knowing your goals will guide you through the definition of what data you need and also how to go through the journey of accomplishing it. Being aware of the options on the market will give you edge when thinking about actual implementation and help you find the best solution for your brand. This means that you should know what data you have readily available  and also know how to use it to achieve your goals.

For instance, if you want to know what customer segments buy what type of product in your eShop, you most likely know what items are sold together, and what day of the week and time of day works best, how many times they come to your site before completing a purchase, how they came to your site, and many other details. Your site analytics might even give you an estimate of the demography of your site visitors. All of this helps paint a picture of your audience. Once you put all this information together, it will be easier to identify the missing parts of data which will help you refine your strategy. Some of the missing data might be available to buy from 3rd parties, others, you will need to gather yourself through testing. This is a continuous process as your company goals and audience evolves.

Download the presentation slides here: Recalculating Creative Trajectory

Want to know more about 2016’s trends? Download our mid-year review