Programmatic or problematic
Programmatic media buying is a new model of media lease that significantly changes the way of “trade” the advertising space was using so far. Programmatic buying implies two fundamental settings — automation and so-called „Big Data“.
Automation refers to making decisions about buying media space. The software or demand side platform (DSP) connects to the advertising network and automatically leases the advertising space when and where it needs. The lease process happens without human communication, unlike traditional lease where it is inevitable. This maximizes the efficiency and speed of sales.
Programmatic lease most often uses the so-called real time bidding model, or real-time auction lease. This model allows lease of advertising space at the best possible price at the time of ad delivery. However, one of the most common mistakes is confusing the real-time bidding with programmatic lease. Real time bidding is exclusively automation and auction, while the programmatic lease does not necessarily need to use an auctioning model. For example, if a particular medium defines the fixed price at which the advertising space is sold, there will be no auction, but buying of ad display will happen only if the viewer is interesting to the advertiser.
The most important element of the programmatic lease is large amounts of data or Big Data. Data is the basis for making all important decisions, when and where to rent an ad and to show it. Big Data is really "Big" - for example, only Facebook generates roughly 6 GB of data in one second. Data Management Software, a Data Management Platform, communicates with lease software, and the message displayed to the user is the one picked as the most relevant for this user. For example, it's possible to dynamically customize your ads so that real-time they display a different message to each visitor.Based on Automation and Big Data, we come to the most important advantages of a program lease:• Exceptional ability to target through all communication channels;• Real-time optimization capability;• Maximizing efficiency by taking campaign goals into account;• Collecting consumer information and improving results over a longer period of time.Programmatic advertising is neutral as far as the platform is concerned - the message is displayed on smartphones, tablets, and desktops.To sum up, programmatic buying is based on the automation of the purchase of advertising space, based on the knowledge that is collected continuously through Big Data. There are more platforms that are interconnected, and behind all there is a team of technicians and analysts who continuously optimize all processes. There are advantages and disadvantages of programmatic media lease, implementation needs to be of high quality and should include all the tools needed to make the lease be the best buy option.One example where one of the Croatian publishing houses in collaboration with the local media agency proved that for a programmatic lease of media the basic requirement is to have a valid database which the Croatian state and the cluster of publishers did not own.It was a series of campaigns of a local cluster of companies named Agrokor and of one of the largest news portals in Croatia www.jutarnji.hr on which programmatic ads were successively released through a part of its online news portal. The first mistake occurred when publishing a strongly targeted ad to a wide audience because of lack of customer information. The second mistake was the choice of timing of ad delivery where the time chosen was one when users were less active. And as a result, the sales were ridiculously low which proved the whole campaign pointless.The programmatic media buying definitely has a great future but in Croatia complete remodelling of the basis is required, which implies large-scale changes with website providers and their operations, changes in approach and regulations regarding the user data by the State Data Collection Agency (DZZS) and the overall approach to this new advertising method.
