The value of premium location and audience data segments in the programmatic era

We know that programmatic is on the rise with it being predicted that two-thirds of 2019 digital media ad-spend will be traded programmatically, increasing 19% to $8.4bn worldwide from $70bn in 2018. Both location and premium audience data are truly valuable in the world of programmatic, but before we discuss why, it is important to establish the benefits of programmatic for agency trading desks as well as acknowledge its rapid evolution to date.

Benefits of programmatic solutions

Having access and control over both reporting and overall media spend enables agency trading desks to better understand the macro level effect of different strands of media budget. With that said, agency trading desks also have flexibility when it comes to setting up and optimising campaigns in-house and in real-time, allowing for decisions to be implemented without having to rely on external operation teams for campaign execution. When it comes to programmatic buying, there are also no additional third-party campaign management costs, making programmatic buying more cost-effective both financially and operationally.

The evolution of programmatic

The rapid pace at which programmatic has evolved has resulted in opportunities for specialists, such as Demand Side Platforms, to make their mark as the key programmatic players. When programmatic first came onto the scene, having programmatic specialists was seen as more than enough for the market to get its head around and adapt. This has meant that the value of data and its applications in the marketplace have somewhat been neglected. Therefore it isn’t surprising that location data has had a slower programmatic uptake.

The importance of using premium location and audience data for programmatic

Although recently we are seeing a proliferation of location specialists grow their programmatic location data and audience segment solutions, usually in the form of Private Market Place (PMP) or Data as a Service (DaaS), and as a result, they are finding their way onto to programmatic budgets.

Companies specialising in location audience data have been busy advancing their technologies, focusing on cleansing, validating, scaling and, more importantly, understanding location datasets to offer premium audience segments built from real-world behaviours.

Audience segments can be built around time & weekday (morning commuters vs evening), visitation and frequency (regular gym goers that were seen in a Nike store in the past month) or specific locations can be targeted by drive time, exact location or walking distance.

By utilising location and audience data segments, programmatic campaigns can be optimised towards real-world behaviours and Trading desks can benefit from accessing audiences that are precise, relevant to client KPIs, unique to advertisers needs, segmented by context and tailored for campaigns.

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