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Programmatic Audience Segmentation

Googe dominated the programmatic ad market. Through it various businesses take advantage of Google's vast reach. Google and Facebook together make up 60% of ad spending. They accumulate huge DMPs tied on actual user profiles. Google encompasses every step of the programmatic process internally. Google is both:

Advertisers come to Google to setup their campaigns. They can target

etc.

They go to Google because it has users and user data. It has advantage over DPM because its users are registered with personal info. The chrome browser also tracks precisely browser history and user behavior. Google has direct insight into users' behavior.

Google's own DMP processes this data into affinity segments. Advertisers set up campaign according to these segments.

Ad delivery is also contained into Google. Publishers can create advertising accounts on Google and get paid to display ads on their website. Google places ad inventory on the ad exchange, enabling everyone to access Google properties and partners.

Google wants to eliminate cookies as primary tracking method, and develop its own tracking.

Target Audiences based on Behavior

Dramatic change in programmatic from targeting demographics to targeting users which signalled intent to buy through their behavior.

Ads served based on intent signals have a 40% higher purchase intent lift compared to demographics alone.

Consumers provide data that shows what they want through their browsing. An advertisers can target intent creating a model for their campaign, based on number of pages, type of website, search terms or other behavioral factors.

When a user reaches a certain trigger threshold of the campaign, advertisers can show them personalised strategies and creatives.

Advertisers can personalise their campaign based on consumer's behavioral intent.

Research your audience and their intent:

There is no one size fits all

Target audience based on location

Location can be pinpointed to city, zip or postal code.

Location data is easier to access than ever before. Smartphone allow to know the exact location of a person.

Maps, apps, searches, etc report location. Find location cues that can indicate and locate your audience at critical times in their search.

Targeting audience based on content and context

The goal pf programmatic is to reach consumers with highly personalized ads. With no cookies, this becomes focused on contextual placements. This is what is called Impression-based Targeting. It doesn't have to rely on cookies, as it attempts to reach new audiences, which can be targeted through demographics, sociographics, contextual and geographical methods.

If I want to sell car insurance to young people, I would look for websites popular among that demographics. Similarly to sociographics, if I want to reach affluent people for example.

Contextual based targeting uses the context of the website to target the audience: sport related website will have sport related ads, etc.

Geographical targeting is based on the location of the consumer to serve ads.

Life without Cookies

In 2020 Google announced that Chrome would not support third-party cookies in 2022. This means DMP don't receive the bulk of their data through ad-trackers or brand relationships. Shift to advertisers first party data, and to less data intensive targeting like contextual and location based targeting.

First alternative for advertisers is to focus their advertising on quality premium websites. This can be done through Programmatic Direct buy, where advertisers make direct deal with publishers. The ad request is only sent to the programmatic direct agencies or advertisers.

Second alternative is contextual targeting.

This moves cements Google's position at the centre of ad tech world, because all the data will go through Google rather than being shared with third-party trackers. Google can dictate future policy, technology and tracking methods.

This is good for consumer's privacy, as cookies expose lots of personal information. But this means only Google has exclusive informations on Chrome's users and Google accounts like YouTube.

Programmatic Pitfalls

Almost 50% of the money spent by advertisers do not reach publishers, but are spent in agency and technology fees and other involved costs. Foe each dollar spent, 0.15p are lost and untraceable. This is a problem of low quality data inside the industry. Also, 50% of the ads are not viewable, in the sense that they are not seen by an actual human: either because they don't load, they are out of the screen, or the website is fraudulent and only created to accumulate advertisers money -- low quality website. They can consume a large chunk of the campaign spending, because advertisers are charged at bidding, and there is no way to verify that the ads are actually displayed.

To improve the system, we need:

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