What is Programmatic Advertising and a Programmatic Creative?
Programmatic advertising or more commonly known as Real Time Bidding is the result of how digital advertising has evolved from it’s primordial days of buying blind inventory on one website and not having clear performance metrics, to an optimized and highly efficient and effective system of buying and selling digital ad space across targeted and engaged users across a network of websites, in real time.
RTB enables the optimization of every impression that is served and allows media buyers and sellers to analyze historic data and make adjustments in real time based upon key performance indicators. AppNexusis an example of a real time bidding platform. In the end of the day the impression will be sold to the highest bidding demand source who will pay the greatest CPM (cost per 1000 impressions)
The Programmatic Creative – What RTB is Missing.
The digital advertising landscape is flooded with the same creatives day in and day out. Unfortunately, they are not programmatic creatives which means that users are seeing the same “stale” advertisements and their click through ratios are declining because they are bored, frustrated an uninterested in seeing the same advertisements.
For some reason the industry has not appropriately addressed the blatant Achilles heel of RTB, the lack of a programmatic creative. Campaigns are given the most attention when being optimized against other demand sources, but the most granular level of digital advertising, the actual visual creative, remains the same. In an ideal ecosystem a single creative should have many iterations that are automatically tested and filtered until the highest performing campaign/ad combination is achieved. When this RTB nirvana occurs, programmatic will truly provide the greatest value for advertisers and publishers