5 Reasons Why Programmatic Creative Is the Future

Programmatic creative is the future of advertising media.

Many bloggers and advertising experts say that creative ads in the programmatic space are ‘the next big thing’ and ‘the media to watch.’ Why? Well, here’s a quick overview of programmatic advertising:

Programmatic advertising is the automated buying and selling of digital ad space. It bypasses the lengthy process of negotiations between advertisers and ad publishers. Instead, it uses

Programmatic advertising refers to the automated buying and selling of digital ad space.

By leveraging ad tech and combining it with human expertise and strategy– programmatic advertisers are a force to be reckoned with.

The use of software and algorithms helps streamline ad buying processes, which is why programmatic has become one of the most indispensable digital marketing tools worldwide.

Now, here’s five big reasons why programmatic creative is the future of digital advertising!

Reason #1: Programmatic Ads Have Been around for Quite Some Time

Programmatic isn’t something new, no matter how many times it’s framed that way.

It’s actually quite old, in internet years.

Dynamic creative has been around since the early days of programmatic advertising circa 2010. Ads have been rapidly adapting and evolving to take advantage of programmatic technologies since then. Advertisers have been at it for over a decade!

Programmatic dynamic creative came about as a response to new technologies – and it uses data, automation, and machine learning to create more effective ads.

That’s why dynamic creative can be defined as a type of ad tech that combines these elements to tell better, targeted stories to customers.

According to an industry report by Celtra back in 2015, companies were already increasing their creative ad budgets to take advantage of the rising popularity of programmatic advertising.

That same report says that the main reason for this was to improve user experience. Programmatic environments require creative ad solutions – and that’s what we have in today’s landscape.

Reason #2: Advertisers Are Already Heavily Invested in Programmatic

Creative advertising is a product of the changing programmatic landscape on the internet.

According to Statista, programmatic advertising was worth 129 billion US dollars in 2020. That number is forecasted to grow to 155 billion by the end of 2021.

To add on top of that, eMarketer predicts that by the end of 2021, 88% of the US Display Ads will be done through programmatic.

Numbers don’t lie. If you want to create tangible results with a digital advertising campaign, it has to involve programmatic ads, or you can’t be a serious brand competitor.

Reason #3: Programmatic Creative Is Already Hyper-Relevant

The big difference between general ads and programmatic ads is that the latter is hyper-relevant to the individual experiencing it on their device. It increases conversions, but there are limits to the creative elements in the process.

Optimizing relevance has been a priority for advertising agencies since the early days of Google Adwords. Many experts insist that programmatic creative is maturing but that the core fundamentals remain the same – even with things like cutting-edge, dynamic creative on the rise.

Ron Amram, a global media marketing leader, said:

My view of programmatic creative is customized delivery of the message to the right person. It’s not necessarily creating things on the fly, or real-time creative.

Essentially, the goal of programmatic creative is to support the overall goal of the ad campaign. Targeting and measuring what works, and getting the right message to the right person at the right time, is still the ultimate goal.

Sure, programmatic creative allows for an enormous variety of creative options, dynamic real-time ads, and exciting opportunities – but results and ROI are still what matters most.

And these results are connected directly with personalization and individual relevance. Is it a good idea to invest in a complex campaign with a large team of creatives customizing 1000 versions of an ad? Will it translate into conversions that are worth the trouble? Most of the time, no.

Brands are often given smaller ad budgets and told to amplify results with programmatic creative– which means there are still stringent limitations on what is and isn’t possible.

Creative isn’t the future; it’s an essential element of current programmatic ad success.

Reason #4: Programmatic Creative Refines Existing Customer Relationships

Over the last ten years, programmatic advertising has proven to brand advertisers that the ultimate goal is to find the right customer and foster brand loyalty among them to convert again and again.

It’s easier to market to existing customers because they are more open to your ad messaging. Programmatic, personalized creatives can increase customer retention rates. According to a Harvard Business School study, a 5% increase in retention translates to a 25-95% profit increase.

Your existing, loyal customer base shouldn’t be overlooked because they’re packed with opportunities!

Repeat customers are 5X cheaper to convert than new customers, which means they will actively save your brand ad dollars if you focus on retention advertising instead of acquiring new customers.

Brands all over the globe know this and have focused their programmatic creative on individuals for a very long time. However, it goes beyond creativity and becomes something more akin to making sure your customer has your product exactly when they need it.

You can’t just rely on creatives to attract every person. It would be best if you also leveraged programmatic ad tech to find the right placements at the right time and serve your target audience.

That way, you can convert the ones you have more efficiently. It helps with establishing more rapport and connection with your existing customers!

Reason #5: Data Is the Future

The one element of programmatic creative that is forever changing and becoming more sophisticated is: data.

Advertisers and publishers have only scratched the surface when utilizing multiple data streams to inform their advertising efforts.

Some of the most common data sources currently used by programmatic advertisers include:

data-sources-currently-used-by-programmatic-advertisers-war-room-inc

The industry is moving towards better-optimized models that use and analyze higher value data, which provides greater insights into customer behavior. 

Data and how it is used in programmatic advertising to build creative assets will be what matters in the years ahead.

Combining data sources and optimization efforts will improve a campaign’s Return on Ad Spend (ROAS) and enable advertisers to reach and connect with their customers on a deeply personal level.

This will lead to greater returns, blending data and creativity so that storytelling can reach its most progressive form. With interactive storytelling, advertisers will achieve the ultimate ROI and higher conversion rates – along with a certain level of predictability.

There you have it—5 reasons why programmatic creative is the future!

Well, let’s be honest, it has been the past, it is the now, and it will be the future.

We can look forward to a more sophisticated pipeline of data, strategized optimization best practices, and creatives customized for individual customers!

Learn more about how you can elevate your advertising strategy with programmatic today!

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