Welcome to Episode 7 of The CMO Show, a podcast about brand storytelling and the future of marketing.
Our guest, Managing Director at Rocket Fuel, JJ Eastwood, sheds some light on programmatic advertising and why there are so many misconceptions when it comes to this automated form of marketing. JJ also provides insight as to why companies need to invest in programmatic advertising and what all of those confusing acronyms really mean.
Host: Mark Jones (MJ)
Guest: JJ Eastwood (JJE)
MJ: I’m going to dive right into things with a straightforward question: what is programmatic advertising?
JJE: In its simplest form, programmatic is just the automation of digital advertising. If you think back to how the stock exchange became automated using technology it’s exactly the same with digital advertising. What’s interesting is that digital advertising was actually the least efficient form of advertising – up until very recently sales were still happening over the phone, people were faxing through insertion orders, people were tracking things on excel spreadsheets. So the average campaign took around twenty six touch points which was just massively inefficient. All of that buying and selling has now been automated and that’s essentially what programmatic advertising is.
MJ: One of the things that I think is of interest to a lot of people, particularly from your perspective, is looking at how major media companies and platforms monetise their business, but also how we engage with them. You’ve got two contrasting strategies here, how do you think it’s going to play out?
JJE: What I think is really interesting is that it’s the consumer driving all of this, it’s like the consumer is now in control. Thinking about it from a marketing perspective, it’s both an opportunity and a challenge. You don’t have a handful of newspapers or TV stations anymore, you have millions of websites to deal with and you times that by the different devices and different channels. What you’re left with is a truckload of data which could be very daunting. It’s also a really interesting time for marketers because they know more about consumers today than they ever have done and they’re able to analyse all of that data by using the new technologies that are available.
MJ: If there’s only 23% of execs who are actually currently leveraging programmatic, what is the opportunity being missed for those who aren’t on board yet?
JJE: I think that there’s huge opportunities. If you fast forward to 2020 the forecast could be a hundred billion dollar industry globally, and as more and more channels become digital it just makes more and more channels accessible to be bought programmatically. You can understand a lot more about a consumer and put a much more relevant ad in front of them, being able to analyse all of that data in real time – it just can’t be done by humans. So it is the future of advertising, it’s where it’s all going, and I think it opens up a lot more great opportunities for marketers.
I think there is one misconception – that marketers need to be data scientists or they need to become tech geeks. Certainly they’re going to have to understand the ecosystem and they’re going to have to understand kind of what the programmatic players within the ecosystem do.
The CMO Show production team
Producer - Nikki Majewski
Design Team Manager - Daniel Marr
Audio Engineering - Jonny McNee
Graphic Design - Chris Gresham-Britt