Programmatic Advertising’s Evolving State

Mobile app marketing is constantly advancing as marketers strive to maximize acquisition and retention – all on the quest for monetization in a competitive marketplace. Evolving technology is also changing the nature of the how marketers approach these tasks. Namely, data is increasingly taking a front-seat role in determining who marketers target and how they personalize ads to these potentially high-value users.

By now, you’ve probably heard the phrase “programmatic advertising” within the context of mobile app marketing. Keep reading to learn more about the role this strategy is playing in modern mobile app marketing.

Programmatic Advertising: A Brief Overview

Here’s how Smart Insights defines this phenomenon: “Programmatic marketing is automated bidding on advertising inventory in real time for the opportunity to show an ad to a specific customer in a specific context.”

The key words here are “automated” and “specific.” Programmatic advertising alleviates the need for human teams to negotiate for ad space by doing it automatically based on data. It also allows marketers to serve more personalized ads – that is, ads reflecting the demographic and behavioral data of the mobile users viewing them. Ideally, this allows for more targeted, efficient advertising for mobile apps. 

Artificial Intelligence & Humans Working Together

It’s true that programmatic advertising harnesses the power of artificial intelligence (AI) to automate media buying and ad creation. AI can make decisions based on data faster than humans can manually, meaning it’s an excellent fit for tasks like figuring out how much to bid on various ad placements, thus optimizing return on ad spend for a given campaign. It’s also highly useful in putting together template-based ads depending on mobile user data.

When humans no longer have to focus on these more rote tasks, they’re free to work on more creative and conceptual tasks. However, it’s still important to have skilled marketers overseeing programmatic campaign performance to make sure everything is on the right track.

Forecasts Predict Growth in Programmatic

As programmatic advertising evolves, it grows. eMarketer forecasts that nearly 90 percent of all mobile display ads will transact programmatically by 2020 “buoyed by continued investment in social platforms, and ongoing efforts to bring programmatic and its audience-buying capabilities to the in-app space.”

There’s huge opportunity for video ads to harness programmatic advertising even more so in the coming months, just as dynamic personalized ads are currently doing. Long story short: This strategy is positioning itself to be the present and future of mobile app advertising rather than just a flash in the pan. 

Fraud Prevention in Programmatic Advertising

The transition from manual to automatic ad buying and assembly brings with it many advantages—namely efficiency and opportunities for data-driven personalization. But there are emerging challenges marketers must consider, like the increasing opportunity for fraud. The last thing you want is for your metrics to show real mobile users viewing your ads when a substantial proportion of “viewers” actually come from bots fabricated by hackers. This form of fraud represents a significant waste of ad spend because there’s no possibility of converting an audience that does not actually exist.

Fraud prevention varies by network for marketing apps. The best solutions offer transparency, so marketers can understand the risks and the measures in place to minimize mobile ad fraud. As one contributor for MarTech Today writes, “Some programmatic platforms also offer real insights into performance and protection against fraud. The problem is not technological ability, but the will to deliver.” Choose your platform carefully and assess its cybersecurity merits and fraud-prevention techniques before launching any campaigns.

Marketers who have a firm grasp on programmatic advertising and its evolving state can harness it to optimize bidding and ad targeting.