The two main methods for programmatic buying is real-time bidding (RTB) and programmatic direct. The auction-based approach of RTB is very dominant, accounting for over $9 billion of the $10 billion spent on programmatic. This trend is expected to change on mobile, with programmatic direct expected to reach 42% or $8.57 billion in 2016 (compared to only 8% this year).
With the influx of ad spend, data will become the force which drives audience-centered programmatic into the mobile ecosystem. The large-scale and complex execution of enterprise-sized campaigns will necessitate data platforms along with smaller marketers who will come to rely on mobile as a touchpoint.
Therefore, the following challenges still remain in programmatic mobile execution:
1. Shortening time between collection and results — Immediate, tangible results are difficult to realize between the time to collect the data and collate the information. Audience programmatic mobile data will require platforms and data scientists to create streamlined and results-oriented processes in order to execute.
2. Shift towards people based marketing — How advertisers measure mobile KPIs may transform as efforts are put into place to reach people rather than impressions. Who the ad is reaching and what actions are subsequently taking place is known as “people based marketing,” and is becoming popularized by Facebook, a leader on mobile.
3. Access and security of data — As data becomes more recognized for its strategic value, strong management platforms will be required to ensure both access and security of this modern commodity.
For marketers, buying advertising inexpensively is eclipsed by the opportunities data can provide to drive more effective media — especially when data can assist in identifying, segmenting and targeting the right people at the right time. An expanded audience is the primary motive on mobile and with these improved business outcomes, we should see a rapid ROI from campaigns.
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