As we prepare for this week’s INMA European Conference in Tallinn, Estonia, we spoke to one of our featured speakers, George Nimeh, chief digital officer at Kurier. Nimeh discusses the emergence of programmatic advertising.
INMA: What is programmatic buying?
Nimeh: Programmatic buying is the future, but you can use it today. It is the use of data, automated systems, and complex trading algorithms to buy and sell as well as analyse and optimise ads in real time.
INMA: Why is programmatic buying important to advertisers?
Nimeh: Advertisers and media agencies were initially attracted to programmatic buying by the lure of lower CPMs. But I believe they are staying due to improved ROI. They achieve that ROI via a combination of the following six factors:
- Operational speed and efficiency.
- The ability to integrate and effectively leverage data.
- The opportunity to optimise and recalibrate campaigns in real time.
- Increased scale and targeting potential.
- Transparent tracking and reporting.
- The ability to run campaigns seamlessly across multiple digital platforms.
INMA: Problems with digital advertising are well known. In that context, are programmatic ads the future?
Nimeh: Yes, I think programmatic will replace traditional (manual) media buying to a large degree. Handcrafted deals will still exist, but even those can/will eventually run via programmatic technology. And its growth will not be limited to digital. It will extend out of the Web and mobile space and into other media, such as TV, radio, and perhaps even print.
There are reports that close to 5% of TV media buying is being done via programmatic today, for example. However, as interesting as it is from a media buying perspective, programmatic cannot make bad advertising formats better. And it can’t fix boring creative.
INMA: Why is the shift to programmatic ad buying significant to your business, and how are you leveraging this opportunity.
Nimeh: We want to help our client and agency partners get the right message in front of the right people at the right time on the right platform. And we want to do that in real time and at the fairest and most transparent price possible. Programmatic helps us achieve that goal.
Programmatic also helps us to innovate. In October 2014, we launched the “KURIER Campaign Extension,” a new product that leverages the engagement factor of native advertising and the reach and efficiency of programmatic.
For a select group of our most important clients, we are leveraging our first-party data to target, retarget, and extend the reach of our campaigns outside of our own network.
INMA’s strategic report “Programmatic Advertising Opportunities for Publishers,” released in September, offers a detailed look at programmatic worldwide.