You Shouldn't be Scared of Programmatic Advertising. Here's Why.


Programmatic advertising automates spending and helps determine the types of ads that run and where they're placed, which all gets done using cutting edge technology like artificial intelligence (AI).

Sounds great, right? But there seems to be an overarching reluctance to embrace programmatic on the part of brands and advertisers alike. Although programmatic has experienced some bumps in the road, there's nothing to be afraid of. In fact, today's programmatic advertising can help you reach your audience for less money.

Before we highlight its benefits, let's debunk some common fears of advertisers and marketers to help you widen your marketing horizons. Once you realize there's nothing scary about it, you are free to explore the real benefits that programmatic advertising offers.

Common Fears

Feeling scared? You're not alone. Fortunately, we've gathered some of the top fears and debunked them for you right here:

●      Poor Placement: Misplaced ads are among the top concerns for advertisers and brands.Previously, advertisers simply bought space on a page or on a section of a website. Today's savvy marketers use programmatic platforms, which allow them to reach their target audience everywhere on the web using invaluable first- and third-party data.

●      Fraud: Have you heard that programmatic advertising puts you at risk for fraud? Ad fraud is nothing new, but when you move to a more tech-savvy, automated solution, you minimize the risk. . Artificial intelligence and various algorithms can identify ad fraud and avoid it. Of course, that's no replacement for doing your own due diligence to stay on top of things.

●      Lack of Control: Although it's true that this format automates a lot of the advertising process, it doesn't take the control entirely out of your hands. Instead, it lets you work within a real-time environment that allows you to optimize at any time for amazing results. It automates, but it doesn't replace the need for a great strategy and a great team.

●      Complexity: Oftentimes, marketers fear that programmatic advertising is overly complex. While it’s true that it is a complicated, intricate process, the heart of how it works is simpler than you might think. A consumer clicks on the page, the page's publisher puts the ad impression up for auction, advertisers bid for the space, and the ad is delivered to the prospective customer. The ability to adjust in real-time allows advertisers to target, retarget and optimize along the way to drive results.

Benefits of Programmatic Advertising

By 2019, experts estimate that programmatic will account for about half of all advertising. And there's a very good reason for that — as more marketers and brands overcome their fears, they begin to embrace the benefits unique to this format, including:

●      Cost efficiency: Using programmatic advertising strategies, brands and advertisers can track the performance of their campaigns beyond simple clicks and impressions. This provides the architecture necessary to design and optimize campaigns to achieve the metrics that matter most. And that is priceless for gaining spending efficiency.


●      Real-time data: With this format, marketers no longer need to wait until the campaign is complete to make adjustments. Instead, they receive real-time insights from the moment it launches, enabling them to adjust along the way for improved performance.

●      Bullseye: All the data that goes into programmatic advertising improves your targeting, allowing you to reach a wider, more accurate audience.  For example, Adtaxi uses top-notch tag management to collect actionable data, leverage the power of predictive modeling and use first- and third-party data to target the consumers most likely to act on your message. We also employ cross-platform targeting to make sure the messaging is seamlessly delivered over every device and channel to provide the best experience for your target audience.

Programmatic has the ability to change the face of advertising and empower marketers and brands to better reach their audiences. Once you overcome your fear of the unknowns of programmatic, you will begin to see how it can take your marketing strategy to the next level. 



Meet Quantum

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Today, at Adtaxi, we are so excited to announce the launch of our brand-new omnichannel optimization platform, Quantum. Leveraging the power of machine learning, this innovative algorithm drives cross-channel optimizations to deliver superior performance for our digital advertisers.

“The name ‘Quantum’ represents the individual building blocks that feed into how we optimize campaigns—each one unique and customized to the advertiser,” said Chris Loretto, EVP of Adtaxi. “We understand how the most granular pieces of data work together to impact overall success, and driven by this concept, the new algorithm will enhance performance to provide even greater value for advertisers.”

Quantum is the next evolution of our original optimization platform, Magellan, launched in 2015, out of a challenge to prove that display could sell products efficiently and cost-effectively. A differentiator in the digital space, Magellan is a technology set apart by its ability to find efficiencies in the bidding process, dynamically maximize marketers’ budgets across digital campaigns, drive conversions over clicks, as well as lower the cost of conversions over time. Based on the success we saw early on with Magellan for display, we adapted the platform to work within social, video and native channels - and optimize to KPIs that made sense for those channels.

In 2017, a new challenge arose: can we drive even greater value for our advertisers by optimizing across all platforms, instead of within? And, what if it also included Search? This is how Quantum was born. In order for Magellan to evolve, we needed to break it down and build it back up again. Quantum has the building blocks to be smarter, to be more flexible, to allow for greater utility, and to generate better performance for our clients.

All the same powerful capabilities of Magellan exist with Quantum - now with the addition of a true digital omnichannel solution for advertisers. First offering Quantum’s omnichannel solution to automotive advertisers, Adtaxi plans to expand the platform to ecommerce and additional campaign categories in the near future. Already, the technology has yielded impressive results for dealers.

“By using an omnichannel approach, we have experienced firsthand the power of multiple platforms harmoniously working together to drive traffic,” said Shane Fouch, General Sales Manager of Byers VW and Byers Subaru in Columbus, Ohio. “Since launching a campaign with Quantum, we have seen a considerable uptick in digital conversions, leading to more visitors walking through the door of our dealership—all resulting in higher sales numbers - and our best January ever.”

Against the Current: Changing Trends in Consumer Streaming Habits

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Remember when content was king? Well, what’s king now is streaming content. And it’s not just streamed films and television content either. There’s parallel growth in streaming live TV events and live sporting events. CBS recently launched CBS Sports HQ, a live 24-7 streaming channel for all types of sports coverage, sports news and insider analysis. CBS Sports HQ will be available for free online for web users. CBS says the channel will cover will news, sports highlights and updates for basketball, football, baseball, soccer, hockey games and more. It’s an attempt to reach the younger demographic of users who have cut their cable cord, and aren’t watching sports at home.

Our Adtaxi “Super Bowl Viewership and Consumer Streaming Trends Survey” from January showed how younger consumers’ viewing habits are changing around content-streaming and media-viewing, especially around major sporting live events.

Other data found in our research on streaming content in general included:

  • 74% of those surveyed stream half of their TV programming
  • 64% of those surveyed stream content on their mobile devices
  • TV shows are the most popular content streamed by women
  • Movies are tops for streaming content among men

And it’s not only young viewers doing the bulk of streaming. Baby Boomers aged 50-64 are also streaming more media than ever. Older Americans are watching 45% more web-connected TV than live network or cable programming, according to data from Netflix, Rotten Tomatoes and E-Poll Research. Some of these TV shows that are resonating with streaming consumers are Netflix hits like “Dear White People”, “Stranger Things” and “Sense8”, per E-Poll research on popular streaming TV shows.

Streaming with the Second Screen

The second screen impact is also in full swing for streaming viewers. When streaming live sports and live TV events, users are also using a second screen to supplement the main event. Mobile devices in hand, these viewers are watching the event, but are tweeting, taking pictures and sharing reactions on Snapchat, Instagram, Facebook Live and other social media.

Advertisers Need Data

Advertisers can reach interested consumers on streaming media in a range of geographical and demographic areas at the same time. They can do this by optimizing targeting strategies and reaching specific age groups or genders on the appropriate platforms.

But the key to it all is the data gained by advertisers. With good data on streaming media, advertisers can figure out which advertising works best on the assorted devices that people use to stream content (phone, desktop, laptop, etc.), and the specific programming apps (Hulu, Showtime, NFL, ESPN, etc.).

New Ad Tech Firms for Streaming Data

Here’s where it gets interesting. New technology companies on the landscape are trying to reconfigure how ads are shown to consumers using streaming media. And it’s all in the data that these companies can gain from you, the home viewer. The Wall Street Journal highlighted three entrants into this growth area:

  • Sorenson Media, which helps advertisers deliver targeted ads to a home’s smart TVs
  • Alphonso, which uses a microphone app to learn about individual’s TV viewing in the home, and then works with advertisers to deliver targeted ads to that location; and
  • Verance, which uses a technology called Aspect to cull data on certain ads that were shown on smart TVs in individual homes.

Figuring out the data equation will be top of mind for many advertisers in 2018 to reach fragmented streaming media audiences.