Targeting consumers in real time is a focus for many retailers, but how should they approach it?
For some, programmatic advertising is having an effect on how they connect with consumers. Martyn Bentley, UK vice-president at programmatic ad platform Chango says that in the US, more than 50% of retailers are using the channel.
Programmatic advertising delivers ads in real time to a highly targeted set of consumers. The technology behind it is based on advanced learning algorithms that crunch online data and feed ads tailored to recipients’ behaviour.
The benefits are cost and efficiency, according to Bentley. “Broadcast advertising, where large groups of people are hopefully reached by a TV channel or newspaper, has been very wasteful.
Programmatic advertising micro casts to the individual and can be tweaked in real time to improve efficiency depending on the reaction of the individual.”
Programmatic advertising uses anonymous data, which conforms to EU privacy legislation; consumers are classified by their behaviour.
Bentley says: “In the future, programmatic marketing may not be confined to online, or mobile ads, for example. Over the next decade, this kind of smart, relevant brand messaging might reach us through connected devices in the home or high street: the so-called internet of things. This could mean consumers receiving messages and ads through their fridge-freezer”