In 2016, advertisers are projected to spend over $32 billion on digital display advertising to engage new customers and strengthen brand loyalty. Unfortunately, a large percentage of this spending will be wasted, since many ads will go unnoticed or are blocked entirely.
By ignoring and blocking ads, consumers are demanding more relevant and useful interactions with advertisers. The only way advertisers will be able to succeed in engaging new and existing audiences, is by leveraging ‘people’ and ‘environmental data’.
Luckily, a number of new technologies have emerged to help personalize the digital ad experience. These new technologies are collectively referred to as the Creative Management Platform (CMP). However, to help understand each of its components, we should first discuss programmatic creative and how the CMP acts as the vehicle for powering this technology.
What is Programmatic Creative?
Programmatic creative refers to the use of data and automation to bring precision, speed, and scale to the creative process. Audience and contextual data help make ads more precise, by personalizing the ad experience based on the characteristics, interests, and habits of the person viewing the ad, and the context or environment in which the ad is viewed. Automation helps advertisers build countless ad combinations at unprecedented speed, distribute custom creatives over widespread scale, and optimize ad performance by learning, testing, and delivering the best performing creatives instantly.
When programmatic first emerged onto the digital advertising scene, it allowed marketers to target audiences with greater accuracy and efficiency by automating the media buying process. While many technological advancements have been made to improve the media side, little had been done to advance the creative end. The intense focus on media and data performance created a wide gap in the digital ad space, wherein marketers were finally reaching the exact people in the right moments, faster than ever, and in the most cost efficient way, but still failed to engage them because consumers were either unimpressed by the creative, or found its message to be uninteresting or irrelevant. What eventually gave rise to programmatic creative was not only the need to fix the creative gap, but the need to foster a more respectful and meaningful connection between marketers and consumers.
Up next, Flite Academy introduces the Creative Management Platform and discusses how advertisers can leverage the CMP to put programmatic creative into practice.