Programmatic Premium: What’s the Big Deal?


 

Being out and about over the past few weeks at trade shows and bars with industry friends, a recurring topic of conversation has been around the future of RTB, and this new term being tossed around “Programmatic Premium.” Note to industry – we should have thought this one through.  Acronyms are a de facto requirement in our space and this one sure doesn’t shorten well.

Why does it matter?  Should I care? Do I care?  Sounds good for advertisers – but, publishers too?  Will it happen in 2012, or is it the next shiny new toy with limited shelf life in our ever changing ‘faddy’ marketplace?

In the recent webinar “Trend Watch: Programmatic Premium Drive Higher Returns on Premium Media Investments,” Team Detroit’s SVP of Interactive Media, John Gray, discussed how we partnered on this game-changing approach for Ford Motor Company. (Read and download the case study here).  And being data geeks here at DataXu (after all, it makes up a majority of our name) it is all about finding the proof in the pudding.  After running multiple live campaigns – the results speak loudly for themselves:  a substantial increase in brand lift and double-digit campaign result improvements.  Damn good pudding.

And while impression-level decisioning and analytics technologies like DataXu have been delivering big results for our clients – a majority of digital marketer spend is focused on endemics and direct guaranteed buys.  So moving the needle in one place is cool, but moving it across the entire media plan is game changing.  The math is too simple and the numbers are simply too large to ignore – 20% uplift on 10% of your ad budget lets you keep your job.  A 20% effectiveness gain across 90% of your ad budget gets you your boss’s boss’s boss’s job!

So what should publishers think about this?  In my opinion, this is a no brainer.  No change to workflow or selling process.  No change to CPM.  Same direct relationships you have always had with agencies and marketers.  Full transparency and control.  And happier advertisers who are seeing better results from the same media.

Call it what you will – the economy continues to suck wind.  Severe pressure on enterprise marketing budgets is not going away any time soon, and perhaps may never go away.  Smart use of game changing big data technologies will deliver better performance, efficiencies and competitive advantage.