With more than 91% of the global population using mobile devices to shop, communicate, and entertain themselves, investing in mobile advertising is no longer optional for brands. It's critical to get your brand noticed by high-value, active customers. What’s more — the majority of time (88%) people spend on their smartphones is spent in apps.
Investing in mobile in-app advertising has powerful benefits for all brands in the mobile-first era. How can brands leverage in-app advertising efficiently and effectively to drive ROI? With mobile programmatic advertising.
What is Mobile Programmatic Advertising?
Mobile programmatic advertising is a type of media buying that uses automated technology to buy advertising space on mobile channels. This is in contrast to traditional advertising which uses manual methods, such as requests for proposals (RFPs), human negotiations and manual insertions of the orders (IOs) to buy ad space. The main benefit of mobile programmatic advertising is the ability to use data, algorithms and machine learning to continually enhance the process of serving ads so that the highest-value user is served the right ad at the right time at the right price.
Aspects of Mobile Programmatic Advertising:
- RTB – Real Time Bidding: A programmatic ad buying process carried out via real-time auctions where DSPs and SSPs buy and sell ad inventory. DSPs bid in real-time on ad inventory supplied by SSPs. The entire process happens in only a fraction of a second.
- DSP (Demand Side Platform): A system that allows marketers to buy digital advertising inventory across multiple ad exchanges via one interface. By using a DSP, marketers can manage their real-time bidding (RTB) across ad exchanges as well as the pricing for the data they are layering on to target their audience.
- SSP (Supply Side Platform): A cloud-based service used to sell advertising in an automated capacity. In mobile, publishers use SSPs to sell display, video and mobile ads.
- Ad exchange: A technology platform that allows multiple ad networks to bid on advertising inventory. The price of specific ad units in this inventory changes frequently. The price is also based on bidding by other networks rather than fixed or negotiated pricing.
{For a full glossary of programmatic advertising concepts and terms, refer to our App Growth Glossary here.}
How Mobile Programmatic Advertising Works
In mobile programmatic advertising, mobile ad inventory is bought via a real-time bidding (RTB) auction. Advertisers can buy per impression, which charges a fixed fee for every thousand times an ad is shown. Since the process is automated, programmatic media buying is more efficient than traditional buying. Furthermore, in programmatic media buying, ad space can be bought at a more granular level with programmatic advertisers able to target specific ads to specific segments of users using algorithms. This is in contrast to traditional media buying in which ads are purchased in bulk and advertisers have little control over the inventory and placement.
Unlocking the Power of Mobile Programmatic Advertising
In today's dynamic marketing landscape, staying ahead of the curve is essential for brand success. Historically, brands have often leaned on the familiar giants like FB/Meta and Google for their mobile advertising efforts. However, the evolving world of digital marketing necessitates a fresh approach. This is where partnering with a mobile programmatic DSP (Demand Side Platform) can be valuable and cost-efficient.
Reaching the Masses with Mobile Programmatic
To capture the attention of this massive audience, a data-driven programmatic mobile strategy is needed. With programmatic advertising, the possibilities are endless. Brands can expand their reach across various platforms, device types, channels, and regions.
As Steve Massaro, VP of Partnerships at Headlight, aptly puts it, "Programmatic advertising, across both web and app platforms, enables brands to reach users through a much wider array of inventory …This helps to tailor strategies to specific interests, demographics, and other targeting factors in a beneficial way, leading to relevant touchpoints with consumers throughout the funnel in a way that search and social sometimes cannot provide." With programmatic advertising, brands can tap into an extensive inventory, reaching users with precision and impact.
Tailoring Messages for Optimal Engagement
One of the undeniable strengths of programmatic advertising is its ability to deliver tailor-made messages to key audiences. By harnessing privacy-compliant data, sophisticated segmentation techniques, and cutting-edge machine learning models, mobile programmatic DSPs empower advertisers to create personalized mobile ads that resonate with specific customer preferences.
This level of customization isn't just about broadcasting a message; it's about creating meaningful touchpoints with consumers throughout their journey. Unlike traditional methods of advertising, programmatic advertising segment audiences to deliver the right message at the right time for optimal impact.
Navigating Emerging Privacy Changes
The advertising landscape has witnessed seismic shifts in recent years, primarily driven by privacy concerns. Apple's introduction of the ATT Framework in 2021 disrupted the collection and utilization of mobile user data. Accessing user-level data for precise targeting and personalization has become more complex. However, these challenges have spurred innovation in data-driven media buying strategies. It has also propelled the use of privacy-compliant data points in new and ingenious ways.
With programmatic advertising, brands can work with DSPs that blend deterministic and contextual data signals that target high value users while staying compliant with new privacy policies.
Robust Campaign Testing
With programmatic advertising, brands can also leverage A/B testing to iterate their campaigns. This data-driven approach allows advertisers to zero in on the optimal targeting tactics, segments and creatives to serve to specific audiences. When it comes to creative strategy, this is especially beneficial. Post-ATT, creative design has emerged as a pivotal performance lever. Successful mobile advertising campaigns now hinge on inventive design. With programmatic advertising, marketers can run certain creatives on certain segments and test them for incremental uplift to understand how to best spend their next ad dollar.
TL;DR
Programmatic advertising’s broad inventory and laser-focused targeting capabilities can open new horizons for brands seeking to expand their reach on high-performing in-app channels. To thrive in this landscape, brands should partner with a mobile programmatic DSP.
- Personalization: Programmatic advertising delivers tailored messages to specific audiences. By utilizing privacy-compliant data and advanced segmentation, advertisers can create personalized ads that resonate with individuals’ specific preferences.
- Adapt to Privacy Changes: Privacy changes like Apple's ATT Framework have reshaped the advertising landscape. With programmatic advertising marketers can blend deterministic and contextual data signals to target campaigns, ensuring compliance with evolving privacy policies.
- Strategic Campaign Testing: A/B testing is a game-changer, enabling advertisers to fine-tune their campaigns. With a focus on creative design post-ATT, programmatic advertising allows marketers to experiment with different creatives on specific segments, optimizing their ad spend for maximum impact.
Reach out to YouAppi’s team of marketing experts to understand how you can expand your brand’s reach on mobile channels and build a long-term, ROI-positive growth strategy.