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How Will Programmatic Advertising Evolve in 2017?

Programmatic advertising continues to be a hot topic in the industry. Panel discussions – and even entire conferences – are built around the buying method that has transformed the way media is bought and sold. How might programmatic continue to change in the year ahead? A panel at AdExchanger’s recent Industry Preview offers some insights on what new opportunities advertisers can expect from programmatic advertising in 2017.

What brands know about their customers is key
Programmatic offers the ultimate tool for real-time, highly granular, targeting of potential customers. But it’s also an advertising format that lives and dies based on the availability of good-quality customer data with which to make media buying decisions. As Matt Sweeney, CEO of programmatic ad platform Xaxis explained, the advertisers that succeed in this new environment are those that know the most about their customers and can provide that data to programmatic partners to improve their targeting efforts. Doing so can help ensure that advertisers get the best performance across the media mix and on all devices.

Actual customer data is replacing models
Related to the point above, more advertisers say that they now have the customer data sets necessary to make this type of programmatic buying possible. In the past, due to challenges like privacy issues and a difficulties gathering such information from customers, many companies had to rely on “models” that attempted to mimic typical customer habits online. According to Arun Kumar, global president of ad tech firm Cadreon, that’s no longer the case.

The lines between programmatic, analytics and data-driven ads are blurring
Data has become an important decision-making component of nearly every advertising campaign. Virtually all advertisers these days use campaign goals and customer data to monitor and improve their marketing efforts. That’s why Cadreon’s Kumar thinks that it’s counter-productive to think about programmatic in its own silo. Instead, the philosophy behind programmatic is increasingly finding its way into all forms of ad buying, regardless of channel.

Advertisers’ appetite for programmatic shows now signs of slowing down. And now that more data than ever before is available to improve the accuracy of programmatic, it’s only likely to get more effective. Expect to see more adoption of programmatic among advertisers as this technology-driven form of buying continues to evolve.