Technology of the Week: Programmatic Marketing vs. People-based Marketing
Information technology has a huge influence on electronic marketplace transformation. Electronic market integrates multiple functions such as advertising, product ordering, product delivery, payment system and after-sale service.
Online advertising, one element of electronic market has drawn increasing attention in the modern society. In 2014, the costs of global digital advertising reached to $146.42 billion (Statista, 2014). For advertisers, the online advertising spending is cost-efficient only when the ads are served to the target audience; however, according to the data provided by Nielsen, only 60% of online ads are successfully reach to the target audience. DoubleClick and Facebook Atlas Solutions are two ad serving companies which provide different intelligent automated technologies to search the right customers for advertisers.
The disruptive technology used by DoubleClick is called programmatic advertising. This technique utilizes the cookies from banner ads for tracking each user’s online behavior and building a profile of a user from these data. According to the cookie-based data, advertisers are able to deliver online ads in the right context, monitor their performance and further maximize the return on investment for a certain online advertising campaign.
Facebook Atlas Atlas uses real-time data and Facebook’s knowledge of user preference, demographic and browsing history to guide advertisers to promote and deliver their products to the right audience. Moreover, Atlas monitors and traces people’s online activity through multiple device platforms to deliver real-world data which has a strong impact on both online and offline world. With Atlas, advertisers can deliver cross-device ads to the target audience more efficiently and create more value for the business.
Both DoubleClick and Facebook Atlas offer a way for helping advertisers deliver the product ads to the target consumers on the electronic market and auction market. However, they use different technologies for tracking and measuring online people browsing history. Instead of cookie-based technology which applied by Google, Atlas measures the behavior of real users and counts the number of ads each individuals has actually been exposed to.
DoubleClick is in the process of rolling out their programmatic marketing model to television screens and placing ads in online streaming and video on demand TV content across various interlinked devices. When this comes out it will be a one of its kind platforms for brands to advertise in online TV content. This might also prove to be very effective since the choice of TV content itself will give brands a good start to pinpoint on their target market.
On the other hand, Instagram and WhatsApp together accumulate 1.3 Billion users (Rany, 2015). With this quantity of users at disposal, it is only a matter of time that the people-based marketing of Atlas would soon hit these popular social platforms. Moreover, with Facebook integration the efficiency of their marketing would be strengthened to greater lengths as they will have much more background information for targeting consumers.
Statista. (2014). Digital advertising spending worldwide from 2012 to 2018. http://www.statista.com/statistics/237974/online-advertising-spending-worldwide/
Nielsen. (2012, 2 21). Measure the true audience for online ads campaigns.
Rany Ng, A. K. (2015, 3). Evolution of TV: The Promise of Programmatic TV. Retrieved from Think with Google: https://www.thinkwithgoogle.com/articles/evolution-of-tv-programmatic-tv.html
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