Brands Are Focusing on Programmatic Marketing to Meet the Evolving Consumer Preferences

With the accelerating digital consumption among consumers globally,  marketers are willing to spend more on the embracing the benefits of programmatic marketing.

The increased preference towards digitalization led more brands to opt for programmatic marketing to reach the fluctuating demands of the target audience. With many parts of the world seeing the second wave of the pandemic, more people are spending time indoors – leading to upsurge in internet usage.

Certainly, this evolving marketplace is putting pressure on marketers. Consumers expect their preferred brands to respond quickly as well as create relevant ads to reflect their needs. Ultimately, this evolution is anticipated to stay for long – reveals a recent IAB study.

The programmatic marketing market is projected to reach nearly $98 billion in marketing spend this year. It is making up roughly 68% of all online media advertising. The IAB study, in association with Accenture, highlighted the important role of the automated digital media supply chains in the marketing sector.

Also Read: Consumer Behavior – the Pandemic is Reshaping the Ad Preferences

As a result, brands are willing to spend more on the inclusive efficiencies of programmatic marketing. The US marketers are the top contributor to programmatic spending worldwide, and the region will see growth. Nearly one-fifth of the US companies had moved to programmatic buying in-house last year.

For Europe, about 74% of organizations had switched to programmatic in-house in 2019, either fully or partially. Undoubtedly, the pandemic has been accelerating consumers’ digital consumption along with changes to marketing data amid the increasing data privacy regulations and third-party cookie degradation.

At present, mobile is one of the primary channels for programmatic buying. CTV is also expected to continue growing with more consumers maintaining the cord-cutting market trend. Since the media space is changing rapidly, marketers seek control on the channel by executing more programmatic in-house.

This offers brands better ROI, more transparency, cost efficiency, and campaign effectiveness. Orchid Richardson, VP and Head at IAB Programmatic and Data Center explains – “As the industry braces for the loss of third-party cookies and audience identifiers, direct engagement in programmatic advertising matters more than ever.”

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Even with brands adopting in-house programmatic marketing, most of them prefer a hybrid approach. It depends on third-party agencies for parts of its execution, however, with the rising demand, marketing professionals with expertise are in high demand by technology companies.

Richardson also said, “Brands aren’t generally taking over the whole process, but they are taking over the development of a programmatic strategy to strengthen customer connections and to control both first-party data and functions that relate to legal and regulatory compliance.”