This article first appeared on The Drum
Programmatic advertising has taken on an important role in performance marketing and has seen exponential growth as a result. According to a report by Statista, global programmatic ad spend reached an estimated US$129b over the past year, with spending set to surpass $150b 2021. As a performance channel, programmatic provides advertisers with the ability to reach audiences at a scale where other channels can’t because of cost implications and competition.
InMobi’s Narayan Murthy (director of digital native & performance, Southeast Asia) caught up with Mediadonuts’ Vishal Kanse, (regional ad operations head, Asia Pacific) to talk candidly about the changing times and shifting demands and behaviors of the digital native generation, how programmatic advertising fits into performance marketing, the future of agency landscape, and much more.
The initial period – the first six to seven months – were very hard, since no one knew what was going to happen. The impact was huge because clients were unsure where to spend their money because much of the budgeted spending they had planned had now stopped.
In terms of the change in demands from the client, one is the representation of the performance data. Another change is finding out for clients how they can solve problems with cross-channel solutions, or maybe brand new ways of identifying the audience base, such as what the new media opportunities are in this time of change, what the current media consumption style of the audience is, etc. And accordingly, right away, we can suggest that this is the audience's behaviors. Apart from data, market research is another key area where we are putting more effort into understanding and explaining to the client how to reach the correct audience.
Programmatic comes in as a very large chunk since it's essentially choosing the right audience. We can select the audience we want through programmatic, we can segment down to any level that is required by the client. And this is possible, apart from in the local walled gardens of the ecosystem. So that makes a difference. Because the clients don't just want to spend only into the walled gardens because they know they have their own kind of base. Apart from that, the basic question is what can we do where programmatic comes in? We can do rich media, we can do video - there is nothing we cannot do with programmatic from audience targeting, from the creative perspective, from the data analytics, tracking measurement, measuring the success of the uplift of the campaigns, or showcasing how the brand has been evolved to the user base.
First and foremost is the presentation of the data - whether it's a sales rep or an ad ops guy, we need to present the data correctly. It's important for us to put ourselves in the client's shoes where they understand – especially if they don't have knowledge of the digital ecosystem – that they understand the return on investment. The data needs to be presented in a way that they understand and can digest. First and foremost is the presentation of the data - whether it's sales.
The second thing is cross-selling. If you're with the walled gardens of the ecosystem, why don't you try programmatic? Why don't you push it? You can see what we're going to do in this week's benchmark - we'll focus on it and showcase our output. From the client's perspective, that builds trust, and they will spend more moving forward. It's a matter of not setting the wrong goals at the beginning.
The third is education. It's kind of tricky, but education is where they will absolutely spend the money once they understand it. Programmatic is kind of a black box to those who don't understand. So, we must provide them with knowledge, understanding, as well as performance results - this will be the longer-term metric.
To learn more about advertising with InMobi, visit inmobi.com
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