Programmatic During the Pandemic

Programmatic on the Rise

When the pandemic hit, the advertising space became severely disrupted and all channels of advertising saw a huge dip in spend. With the landscape shifting immensely due to stay-at-home orders and uncertainty with how long the pandemic would affect the space, many advertisers paused spend until the landscape became more stabilized.

Now that we’re months into the pandemic with an unknown end date, programmatic channels are seeing an increase of spend given the commitment costs and rules around channels like traditional media, which is expected to drop by 30% on average.

Prior to the pandemic, programmatic spend dominated the digital space accounting for 83% of digital ad spend. In December 2019, MediaRadar reported that the number of brands running programmatic campaigns sat at just under 34,000. However, advertisers ramped up their spending in the channel as consumers began spending more time at home, and as of June 2020 the media company reports an 11% increase in programmatic buys as more consumers are staying home. In fact, programmatic is expected to account for nearly 87% of total display ad spend by 2021 driven by significant investments from education, media, and technology advertisers despite continued decline in spend from travel. Source: Adweek

The programmatic space has inherent benefits such as flexibility, affordability, access to trackable data, and optimization towards specific business objectives such as e-commerce sales. When times are uncertain, advertisers stray away from making long term commitments and programmatic allows advertisers to distribute their content directly to the consumer at lower prices with huge scale. The space also allows advertisers and marketers to easily pause and launch campaigns given the nature of the channel, while also allowing them to measure the success of their campaigns real time. With this added layer of data, advertisers can easily measure and manage their campaigns and push for specific campaign objectives to make sure the campaign meets all campaign goals. However, businesses should expect to see popularity within the channel shift as more rules are being enforced due to privacy and security reasons. For example, Apple will be releasing new features that will allow users to block location tracking more extensively while including transparency tools to prevent apps and data collectors from obtaining users’ data without their knowledge. This will have a significant impact on the advertising space given the ability to hyper-personalize users with targeted ads will be limited and make reaching targeted audiences more difficult. Google removing its third-party cookies as well as having to navigate the CCPA (California Consumer Privacy Act) will also affect the channel, limiting data availability and usage for advertising purposes.

Ignited is helping clients and brands breakthrough the pandemic by utilizing programmatic advertising. Contact us today to book a consultation to learn more about Ignited and how programmatic could improve your business!

 

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