Has the user previously purchased a product or service from the advertiser?
What is this person's online behavior at that moment? (What websites has he just visited?)
What time is it?
If you've just searched for a sporty hoodie on various websites and have ever bought an Adidas product, chances are you've seen an ad like this one pop up in your timeline:
Anyone who wants to get started with programmatic advertising will have to invest in data. Without data about, for example, visited pages, previous purchases, click paths and other potentially valuable information, this form of marketing is not possible. This data provides an image of the potential customer. The algorithms do their work based on these customer images.
For many companies, it is a considerable investment to map out this data ecosystem. However, the return on investment (ROI) of programmatic advertising is often higher than other forms of advertising, because it responds to an active need of the potential customer. The need to buy a new sweater is already there. Last year, expenditure new zealand number for whatsapp on programmatic advertising increased by 20 percent . This is expected to increase further in 2018 and the following years.
3. Social shopping
A fast-growing trend, partly resulting from programmatic advertising, is social shopping. Social shopping gives consumers the opportunity to buy products they see on social media directly. Especially on Instagram and Pinterest it is possible to order products that are shown on advertisements immediately.
The goal of social shopping is to make the steps between social and 'the shopping cart' smaller. The expectation is that these steps will only become smaller in the coming years. Social shopping is already quite integrated on Pinterest and Instagram . For example, Pinterest users can buy a product that they see passing by on the platform with one click of a button (buy it).
social shopping
Also read: Social advertising trends: shopping ads, influencers, IGTV & AI
On Instagram, it is possible for advertisers to promote multiple products in one post. In the Instagram post below, for example, consumers can click on the different items of clothing separately and then buy them with one click of a button.