We live in days when we can feel the change happening around us. Digital advertising is not what it used to be. And we don’t mean what it used to be compared to 1994 when the first banner ad was introduced. Digital advertising is evolving and progressing with every day passing by. All due to a 4 letter word that reshaped the industry - data.
Data-driven advertising is on the rise to become the preferred approach of today’s businesses. The methodology behind it is simple - make informed decisions in your advertising strategies based on the information you’ve collected about your consumers. It sounds simple and not ground-breaking at all right? If we take into account that the information that needs to be processed is the one collected from the digital space, then the picture gets dazzling.
According to IBM “every day, we create 2.5 quintillion bytes of data — so much that 90% of the data in the world today has been created in the last two years alone.” Our connected devices - laptops, tablets, phones - ooze large volumes of data on daily basis. Each action that we take leaves a mark, a signal that if noticed can be a valuable piece of information for brand advertisers. Imagine you were browsing online for a suitcase and you were comparing prices. You’re leaving in few days and you need a good offer fast.
This is a type of information that advertisers need to know and they need to know it at the moment when it matters (not after you’ve left for your trip). Only with this time-relevant knowledge they will be able to engage with you with their best offer.
Digital advertisers today need not only a solution to help them collect and process the vast amount of data available. They need a tool to help them navigate through the collected data in real time and react at the instant there is a consumer intention. We live in the exciting days of advertising technologies and ideas such as “campaign optimization robots” are not something from the books.
Such Artificial Intelligence (AI) engines are the trademark of the programmatic media buying industry. They allow this exact real time reflectiveness that advertisers seek. AI-engines navigate through the digital market and are able to react right on the spot when they notice a good opportunity.
When we started developing our optimization engine R.Skott.io, one of the first things we put on our to do list was to build him in a way that will make him responsive to real time demand. With this capability in hand he can stay relevant to the market flow and chose the best tactic to approach target consumers.
Being agile nowadays means to be responsive in real time. If advertisers want their data-driven advertising to be truly productive, they need to implement real time optimization in their ad buying strategies.