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Programmatic Advertising and Real Time Advertising

What is needed to lower the cost to acquire new customers

July 2018

Since the beginning of times, the adage in Marketing says that it is better to consolidate the relationships with the customers in the portfolio rather than aiming at conquering new ones. Tearing customers away from the competitors, convincing and winning them over is extremely costly both in terms of energy and budget to allocate in creativity and promotional initiatives. And, above all, the risk is that it is distracting resources and attention from activities that can effectively help the organisation generate value in a simpler way, through the development of tested relationships of which the dynamics are already understood. If we think about it, the issue is all about the knowledge of customers and their behaviour, or the quantity and quality of data collected during the interactions between brands and individuals. And to have enough information to “communicate” with a realistic profile it takes time, transactions, and a series of elaborations on the inputs put together. However, these are all legacies of traditional Marketing or, at best assumption, of Digital Marketing in its early days

 


 

Engagement with the network users

 

Today, being able to create engagement with network users and turn them into new customers, lowering the CPL (Cost Per Lead), thus not necessarily having to neglect those acquired is indeed possible. How? By engaging them on the various channels, recomposing the fragmentary nature of the traces they leave on the different physical and digital touchpoints, engaging each interlocutor with offers oriented to their specific needs or even with customised messages, as if they were made especially for their consumer identity. The key to everything is real-time reconciliation of the browsing type or use of channels with user segments and profiles. An operation that represents the core of the so-called Programmatic Advertising, the Digital Marketing branch that, through real Real Time Advertising formulas, implies the buying and selling of online advertising spaces through automatic bidding systems, that optimise prices and availability of banners, platforms, and spaces according to the targets to be reached. The contents are then proposed and shown in real time to the subjects that, based on the characteristics of their profile, are potentially more interested in receiving them.

 


 

The tools behind Programmatic Advertising

 

The mechanism works thanks to the concurrence of three IT tools that, by collaborating, base the combinations that allows campaigns to be properly directed on the sharing and processing of data available. The first is the Data Management Platform (DMP) that allows aggregating and analysing large amounts of data from different sources (proprietary databases, datasets acquired from third parties, other types of inputs) related to user behaviour. Based on these analyses, it is possible to segment and profile targets by planning initiatives whose effectiveness can be found in real time.

The Demand Side Platform (DSP) is the counterpart of DMP and is responsible for the process of purchasing advertising spaces, incorporating the offers that come from Marketing and assigning the prices for the available space. The process that operates in a continuous cycle, is perfected thanks to the SSP, Supply Side Platform, that has the task of including offers on various touch points, considering both the different insertion formats and the characteristics of the target to which the messages must be addressed.

This way it is possible to direct new users in a precise and above all automatic way, ensuring that messages and content reach their destination in a coherent way, without having to deploy resources that would be removed from empowering the relationship with consolidated and valuable customers. And above all without the risk of wasting budgets intended for the generation of Leads on channels and users that are already followers of the brand or who, on the contrary, are not interested in its proposition.