Programmatic buying and selling firm Rubicon Project recently completed a study with data firm Contexxt that demonstrated the effectiveness of programmatic advertising. The study concluded that buying ads programmatically can increase return on investment by 20 percent and raise bottom line sales by five percent. The study, to be released this week, carefully noted that these results will not be realized unless there is a strategy at the onset of a campaign. Mari Kim Novak, Global CMO Rubicon Project, explained, “You also need a thoughtful strategy with smart allocation across desktop, mobile and video. Brands that are thoughtful about their channel-specific investment are the ones that will maximize returns from their overall programmatic strategy.”
The study set out to understand the impact of programmatic across all channels, how properly executed programmatic campaigns could impact sales and the impact of marketing return on investment via programmatic. “Programmatic will continue to grow in revenue and importance to advertisers as we continue to increase the level of consumer response level data,” noted Shelly Zallis, CEO Contexxt.
The methodology included a focus on $20 billion in spend analyzed across Fortune 500 companies in ten vertical categories. Multivariate data sets were created to determine the channel allocation, creative unit and sales impact. Included was competitive action and cost data in order to determine measurable business results. Additionally, comprehensive tactics included time decay, reach, frequency and flighting.
Here are the conclusions:
“We at Rubicon Project believe that the average brand should double its programmatic allocation, advertisers should use private marketplaces to leverage first party data and brands should be allocating for the future, especially in Mobile and Video,” concluded Novak.
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