Programmatic advertising is the future of digital advertising. Programmatic advertising will really take off in Switzerland in 2017. A peek across the Atlantic (and the English Channel) shows where this path might lead: a large share of display advertising budgets in the UK and US (UK: 70%, US: 65%) is allocated to programmatic advertising.
Switzerland is lagging behind this trend, although the proportion of spending on programmatic ads is rapidly increasing here too. According to IAB Switzerland, programmatic advertising comprised about 5% to 10% of digital advertising in 2015, with this share expected to at least double in 2017.
Programmatic Share of Display Advertising, own research
One milestone has already been reached in 2016 now that all relevant Swiss premium publishers have discovered the opportunities of programmatic buying. This has finally made high quality inventory accessible to advertisers in Switzerland.
So, it is likely that the purchase and sale of specific ad space in real time in Switzerland will become increasingly common, and the dynamic character of programmatic advertising will replace the previously static workflow in purchasing and in the optimization of ad space. User response and performance figures will therefore serve as essential input for the ongoing optimization of display campaigns – together with third-party data. For example, current weather data can be incorporated into the creation of dynamic advertising that takes into consideration the context of the target groups.
Programmatic advertising will capture 25% of the Swiss display advertising market in 2017.
How can Swiss companies respond?
The paradigm shift toward programmatic advertising will succeed only if decisions revolve around the individual and specific target groups. It’s time to rethink your media planning and say goodbye to static budgets and other outdated models. Focus on your target groups and their customer journey. Consider which data delivers good ongoing metrics in order to determine the success of your campaigns and where changes need to be made. Only through an integrative, programmatic approach will you be able to reap the full potential of programmatic advertising: efficient campaigns, real-time optimization, effective targeting, better data and complete (price) transparency.
Programmatic and measuring the advertising world
Programmatic advertising offers new perspectives in regards to efficiency, reach and quality for branding and performance marketing. Properly structured data is the basis for success in the world of digital marketing. Using the example of Doubleclick-Floodlight-Tracking, Tobias Zehnder highlights the difference that shifting from channel-focussed to user-focussed advertising can make.
Speech: Tobias Zehnder, Programmatic Advertising Day 2016, 9.11.2016 in Zurich