Nov 19, 2018 Written by David Barlev

Increasing Your In-App Ad Spend? Try Programmatic Marketing

If your app’s monetization strategy includes in-app ad spending, you’re going to want to take the time to learn about programmatic marketing. It’s a growing trend, and the results make it clear why that is. It’s been a game-changer in the digital marketing world, and marketers everywhere are continuing to direct their budget in this direction. If you’re going to be increasing your in-app ad spend, programmatic marketing is a great place to do it.

The Q2, 2018 Programmatic Mobile Video Advertising Insights for Marketers found that programmatic marketing ad spend had increased by 62% during that time period. Furthermore, they found that in-app video ad spends increased by a whopping 38% when programmatic was used. In a world where 90% of programmatic auctions are being dominated by apps, it makes sense that in-app video now accounts for 86% of the total programmatic ad spend. Consumers love videos, and they love their mobile devices even more.

increasing in-app ad spend

What exactly is programmatic marketing?

To keep it simple, programmatic marketing is essentially just a way to better target the types of customers you want to get in front of. Like more traditional paid search, you can target certain demographics and areas, as well as set limits on frequencies and times. The difference, however, is that you get to decide which publishers you want to be present on which in turn allows you to ensure your ads are presented to the right people, at the right time. Gone are the days when you had no choice but to sign a contract and run a specified number of ads with a publisher.

If you want to dig into it a bit deeper, this type of marketing is the algorithmic purchase and sale of ads in real time. Software is used to automate the purchasing, placement, and optimization of advertising through an auction-based system. There is no requirement for the human element, which means the entire process is completely automated.

The methodology here is that this type of media buying allows the company to tailor ultra-specific messages to the ideal person, at the ideal time, in the ideal context. The software will use audience insight from the brand, which results in ads that are personalized, precise, and effective. The results will improve over time, as the software has more data to analyze. You’re not focusing on the volume of impressions but on the quality of interactions.

Explain it to me like I’m 5

Okay, so you’re online all the time, meaning you see ads all the time. When a website you hop onto is loading, and that website happens to have space for advertising to display at this very second, data is shooting back and forth faster than the speed of light between the ad exchange and the data your own behavior is providing. In real time, this space is given to the highest pre-qualified bidding company. It’s really that simple. Decisions are made using the available information, and then those who fit the bill are entered into the auction. Someone wins, and their ad is shown to you. This all happens in milliseconds, and as consumers, we are none the wiser. But, we’re more likely to buy because we’re seeing ads that are somehow filled with items we love.

Move this example into an app, and it’s working the exact same way. If your app has space for advertising, programmatic marketing is where it’s at. As we continue to make advancements with AI and machine learning, the capabilities of this type of marketing will continue to evolve and help us to do an even better job at providing consumers with the exact information and messaging they want. When we give them what they want, they spend. It’s a win, win!