The Age of Mobile Programmatic Inventory and How it Affects Cash Flow

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Today’s digital advertising scenario is almost single-handedly managed by programmatic advertising. It uses software to better manage ad buying and selling with workflow automation. However, the challenge facing publishers does not end with programmatic. Their current challenge is to sustain revenue growth with a programmatic strategy around general and premium mobile audiences.

What makes money?

How do publishers use programmatic solutions to get the maximum from mobile? How to improve mobile inventory value? One good strategy is measuring the “effectiveness of your cost per mille” or eCPM. You can exponentially improve your bottom line with enriched mobile impressions. They should lead you to additional sought after data like location and device ID. A monetization strategy, based on data sorted through advanced parameters, brings higher revenue and value for publishers.

Can you benefit quickly?

The latest software designs in programmatic for mobile devices provide customized solutions, provide full control on audience data, and optimize campaigns to achieve better negotiations. This results in faster marketing turnarounds with increased revenue and minimum risk.

Other important facts

Programmatic mobile has grown distinctly popular with advertisers in the last couple of years. Advertisers are also shifting their ad spend towards mobile devices owing to increased consumer preference. This lateral shift promises to increase efficiency in media ad spending.

  1. Higher spending on mobile ads

The year 2014 saw $8.04 billion rise in total mobile inventory spend from 2013, nearly 80% increase. By 2015 end, every 1 out of 10 dollars of media spend will be attributed to mobile. It promises to surpass many advertising channels like radio, magazine, and newspaper.

  1. Usage of programmatic solutions in US
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The programmatic scenario worldwide shows $10.9 billion transactions in 2014, with US sitting on 53% of the market. By 2015, programmatic transactions in US will amount to 62% of the total digital display revenue. This will most likely shoot up to 82% by 2018.

  1. Programmatic buying for mobile by advertisers

One of the key and readily available display devices is the mobile. The exponential rise in programmatic marketing for display devices will automatically bring mobile programmatic ad spend to the frontline. In 2013, around 68% of mobile ad buying was done programmatically. This number is predicted to go up to 88% by the end of 2017.

  1. Programmatic solution growth globally

Even though USA seems to be at the forefront of the programmatic and RTB market, there is rapid response from the rest of the world. Globally, between 2012 and 2013, the proportion of total spend on display was about 33%, while the same figure touched 42% the next year. Strong growth is predicted over the coming years with programmatic spend hitting about $53 billion by 2018.

As the mobile industry is continuously growing, there is every need for publishers to design a corresponding advertising strategy. Prudent paths are followed based on premium inventories, which are already known to quality publishers. Many positive results have been found using programmatic solutions in mobile devices.

Even after meeting only few of the desired data parameters, publishers have experienced immediate positive bottom line impact after shifting to premium mobile. Companies have reported 50% rise in their eCPMs just within the first month of their mobile inventory inputs.

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Author Bio:

Preethi Vagadia is currently a Senior Business architect with the Service operations practice at a well-known IT Industry in Bangalore. She has worked in several process improvement projects involving multi-national teams for global customers. She has over 8 years of experience in mortgage technology and has successfully executed several projects in logistics management, logistics integration, reverse logistics, content management system software, warranty software and programmatic solutions.

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