Today, finding your favorite food in an unknown neighborhood is just a click away. Yet, this simple search successfully gets you correct results because of thousands of people. Astonished with this?
Well there is a whole new technology behind it. That is exactly what we are discussing today – programmatic data.
The term programmatic is a combination of the two words, program and automatic. The use of programs or software to automate the ad management, buying, and measurement process is referred to as programmatic.
What is Programmatic Data?
Programmatic data is the pinnacle of “big data,” providing unprecedented levels of detail about the reach and effectiveness of media buys. And, as with all big data, its volume and complexity far outstrip any human’s ability to process it. Smart technology, on the other hand, can sift through all of this data and produce the programmatic tool insights and guidance we require.
This programmatic combination of natural language processing, data analysis, and benchmarking has the potential to yield significant advances in how we approach programmatic. We can unlock the full potential of programmatic data to optimize and supercharge the world of advertising if we can bridge the gap between data, insight, and action.
How Many Types of Programmatic Data Are There?
When compared to the traditional method of purchasing media space, data is without a doubt one of the most significant new extensions in programmatic. Without the numerous data-utilization options, programmatic would almost certainly never have gained traction.
In programmatic buying, advertisers will be able to use three types of data: their own data, data from publishers, and third-party data from external data suppliers. Using the data, the advertiser can find the most relevant audiences among billions of ad impressions, significantly increasing advertising efficiency.
One of the data myths is that the benefits of programmatic advertising can only be realized when the advertiser has access to their own audience data to target advertising. Own audience data is valuable and should be used to make advertising more useful to consumers, but it is not always necessary.
The key is to know who you want to reach, what you want to say, and what you want to accomplish. In general, combining your own data with that of an external partner is the most effective combination. Only a few advertisers have enough data, and enriching it would undoubtedly lead to new opportunities.
Programmatic is the most effective way to segment large amounts of data into audiences that are relevant to your brand or business. Data is central to programmatic, and marketers must understand the key distinctions between data types in order to make the most of them in their campaigns.
These are the main data types:
First-Party Data
The data you collect and own from your own audience is referred to as first-party data. Because this information about your customers is collected and created by the systems you use, you personally own it as a business. This is why first-party data is the most powerful type of data to own.
Second-Party Data
Second-party data is information that was not obtained directly from your customers. It is instead derived from first-party data provided by a partner. You can gain access to this data by arranging for a partner to share their customer data with you. This sharing of high-quality first-party data allows you to reach audiences you might not have been able to reach otherwise. This data can be of comparable quality to first-party data and provides you with a larger audience pool.
Third Party Data
Data gathered by an outside entity. Third-party data is typically gathered anonymously from other entities and sold to other platforms. Surveys/panels, opt-in online tracking, cookie-based tracking, registration data, public records, and offline transaction data such as loyalty cards are all sources of third-party data. Because of the nature of this data source, it has the lowest quality of the three but the greatest reach.
How Does Programmatic Data Actually Help You?
Using programmatic data to inform your overall paid search strategy can give you a competitive advantage and help you achieve better results. Keyword strategy, ad copy, ad extensions, and landing pages are all examples of this. The more you know about your target audience and what they like, the better your chances of appealing to them will be. Data abounds in the programmatic world. Customers’ interests, likes, dislikes, geographical location, and gender, for example, can help determine keyword buying and ad messaging strategies.
When it comes to display and the GDN, programmatic can be a huge help. Although the GDN currently reaches approximately 90% of all websites, programmatic reach is closer to 99%. This can significantly increase your total reach. Because of the abundance of available inventory, marketers are not entirely reliant on Google inventory to reach their target audience in an efficient manner. You can use programmatic learnings to identify placements, websites, and audiences that may resonate well with your GDN audience.
Data science can be a useful tool in this regard. It is broadly divided into three categories:
Geo location
Traditional approaches use factors such as store location, population density, and so on to determine where campaigns should run. Through unsupervised geographical segmentation, the data science method is based on footfalls, media consumption, brand and competitor store densities.
Context
In traditional approaches, the domains and channels strategy for ad placement is determined by logically complementary domains. Using data science, recommender systems can identify underutilized channels that may perform better for a specific campaign.
Audience
Traditionally, audience strategy is based on the definition of a brand’s buyer persona. The supervised classification method is used in the data science approach to identify website visitors’ personas and look-alike segments.
Although the number of options for purchasing data is expanding rapidly, the quality and functionality of the data vary greatly. There are many providers of ready-made audiences on the market, but the buyer should also ensure that the data used is of high quality and that the data providers follow the applicable laws. A trustworthy data provider can always tell you how audiences are created and what data sources are used.
Data usage in a campaign is typically priced per thousand ad impressions (CPM). The advertiser does not purchase the data, but rather rents it for use in the campaign.
End Note
Advertisers and publishers could use programmatic to be more adaptive and responsive, adjusting strategy in real time based on the most recent data and insights.
We require powerful visualizations to assist us in identifying patterns, trends, and outliers in their data, allowing us to make faster, more informed decisions. Simple questions about complex real-time data should yield clear and actionable answers. Using programmatic analytics and reporting, take advantage of advances in consumer technology to create a more conversational approach.
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