Our founding fathers ‘“Ad Men” have stated, “We need to stop interrupting what people are interested in and be what people are interested in.” This is easier said than done on connected mobile devices, but is now technically possible.
The equation for the Programmatic Internet of Things is:
Big Data + Mobile/Local = Premium Programmatic
Five simple elements need to exist to realize the programmatic dreams in a 30B device world. These five central tenets: 1) Satisficing (offering the “next best option) & Situational Awareness; 2) Premium Sensors or Real-Time Indexes; 3) Transformed Brand Ads into Day-in-the-Life Actions; 4) Programmatic as the Glue to Scale Cross-Channel & Wearables and; 5) Vision and Innovation to realize “minority report” type ads or the perfect “Suri “suggested ad experience.
Programmatic is not being used to its potential in the current digital advertising world. The solution is a mixture of technology, measurement and behavioral common sense. This mixture will ensure the ad environment and ad exchange are simple and eloquent enough to easily define the ad product, allowing a simple bid The KISS principle is always followed by trading desks, exchanges and in the programmatic world to quickly achieves scale, the desired price, high margins and the optimal performance. “Satisficing” or offering the next best option can be easily understood in the programmatic world of cheap media and easy testing by using big data targeting for context-aware personalization.
The new wearable and phablet world will consist mostly of single-share-of-voice ads like today’s TV 30-second spot. The new generation, raised on the Internet, loves the tablet-type environment where behaviors can be measured and applied to provide the right ad at the right time. As the consumer gets it and wants more content and video experiences, the digital media industry need to embrace this new world and continue to innovate with big data and location services utilizing our mobile programmatic exchanges. Real-time indexes and location-based measures will help our industry get to the next level. These real time indexes can help scale programmatic creative and nativize ads using better measurement -- especially when focusing on the location and device -- not just behaviors.
The former big three digital ads (standard banner, search and video) are transitioning to a CB/CD (connected behavior/connected device) world. In this programmatic environment, standard banners, search ads and mobile/local ads are finally beginning to outperform any other form of advertising on a ROI or KPI basis. By keeping the programmatic environment simple (for example, buying standard banners on price and publisher, buying search based on key words and local/mobile based on time and place)-we are finally able to get to the next level and transition our digital device thinking. What would this look like? Visualize being presented with an ad that knows you are at Whole Foods shopping for a cold gluten-free beer.
Lastly, in order to realize the Programmatic of Things in a world with the Internet of Things, our digital media industry must be inspired again to innovate new ways of interacting with consumers when fighting for attention. The promise of big data, along with mobile & local in a programmatic premium environment can do more for our industry than the new IAB president tackling fraud, or even the digital Newfront buyers who are spending money because they love the Yahoo! goodie bags. In the Programmatic Internet of Things, we can scale both “Suri-like” ads as well as “Minority Report” marketing to take into account the 30B devices and over 1 Trillion + consumer behaviors. The new famous programmatic trading desk bar courtesy of Xaxis will be called CBCD -- not CBGB in New York’s East Village.