Kristina: What trends are you watching in localized programmatic advertising right now?
Frost Prioleau, CEO, Simpli.fi: There are a handful of important trends that are impacting localized programmatic advertising right now.
The first trend is the advent of addressable advertising, meaning that advertisers can now precisely select the individual households that they want to target. Targeting at the household level enables advertisers to use address data from their CRM databases, and also from large demographic databases that enable very detailed targeting.
The next trend is the growth of advertising on advanced television, including over-the-top (OTT) and connected TV (CTV). Advertising on advanced TV enables advertisers to enjoy the impact and reach of traditional tv, with the targeting and precision of digital advertising.
And finally, mobile advertising capabilities continue to grow and add capabilities. In particular, the ability to provide foot traffic lift driven by mobile advertising campaigns (as well as for display and OTT/CTV campaigns) is now providing very valuable insights to advertisers.
Combined, the convergence of addressable advertising, OTT/CTV, and mobile foot traffic attribution are creating are creating very exciting new capabilities for localized advertisers.
Kristina: We're hearing that localized ads/localized data could see a sharp increase over the next year - do you agree?
Frost: Yes, I think we will see a sharp increase, especially with the dynamics of addressable programmatic. At the inception of location-based marketing, an advertisers best option available to target their audience was by Designated Market Area's (DMA). The next breakthrough for marketers came a few years later in the form of Zip Code-based targeting. Following Zip Codes, was geo-fencing, which enabled marketers to incorporate targeted locations with location-based mobile adtech.
Although this remains one of the most effective ways for advertisers to target a specific localized audience, the most recent and obvious evolution of localized programmatic is targeting at the household level. Addressable Geo-Fencing and Addressable OTT/CTV are going to see a significant uptick over the next year as advertisers seek technology that allows for an even more granular approach.
Addressable Geo-Fencing and Addressable OTT/CTV are the new way to use digital advertising to target physical addresses in a scalable manner. This can allow for up to 1 million physical addresses to be targeted per campaign at a lower cost of data on-boarding. It also provides more accuracy and precision in targeting across mobile, desktop, and OTT/CTV devices as it uses actual GPS and plat line data rather than relying on targeting based on IP addresses.
Kristina: OTT/CTV seems to be one area in which localized programmatic could thrive - could you expand a bit on this?
Frost: 85% of U.S. households watch streamed content via OTT/CTV devices, according to eMarketer. There's no question that OTT/CTV content is increasingly where people are going, and user numbers continue to grow. Targeting is what truly makes OTT/CTV advertising so exciting and dynamic, and In fact, OTT/CTV ad requests are up 1640% year-over-year. With OTT/CTV, we don't have to choose where to serve ads based on the popularity of a program. Instead, we can follow users who are likely prospects depending on their online behaviors and then target those prospects with ads across OTT/CTV devices.
Kristina: What are your top 3 tips for marketers looking to create a localized programmatic strategy?
Frost: Marketers that are looking to create a localized programmatic strategy need to customize their targeting to the actual locations to which they want to drive traffic.
Capabilities have moved far beyond targeting at a DMA level, and advertisers who take advantage of this will see improved results. Digital marketers should also try out addressable (household level) advertising with either their own CRM data, or with the large volumes of household level data available in the market today. The results of targeting specific households has been known to direct mailers for years, and digital marketers should take advantage of the fact that capability is now available to them. Another tip for marketers implementing a localized programmatic plan is to be sure you are measuring geo-conversion lift. It is now possible to measure the lift in store visits caused by advertising spend, and marketers should optimize their advertising strategies accordingly.
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