programmatic_creative_report

What’s real.
What’s next.
In other words, Programmatic Creative enables advertisers to leverage
automation technology to generate, iterate, and optimize creative assets to
promote high-touch engagement regardless of digital strategy or budget.
“This isn’t dynamic display. Programmatic Creative is the ability to create and
iterate ads in real-time, giving brands more control than they’ve ever had
in the past,” says Jeff Hirsch, CMO of CPXi. “This tactic offers a tremendous
opportunity for the travel and entertainment industries, among others.”
The best way to understand the concept of Programmatic Creative is to adapt
a lesson taught in every Marketing 101 class across the country to the current
technological digital landscape. There is a new set of factors to think about –
the 4 Cs of Programmatic Creative:
Cost Competition Coverage Capability
COST:
The Crippling Cost of Creative
One debilitating factor preventing many advertisers from taking full advantage
of programmatic is the exorbitant cost of developing the required creative
assets. Some advertisers and agencies try to sweep the cost issue under
the carpet by allocating creative development to a different budget than
their media spend. This only leads to inaccurate Return on Ad Spend (ROAS)
calculations and an unclear bottom line. Margins and performance metrics are
actually significantly less attractive once all costs, including creative, are taken
into account.
Let’s assume that the media spend for a campaign totals $30,000. The
typical cost of creating a single ad unit is approximately $2,000. To run a
campaign with three ad sizes, the creative costs total four times the media
cost. But it doesn’t end there. As we saw before, to leverage the full benefit
of a programmatic environment, advertisers should run as many ad sizes as
possible and build various versions of each unit to personalize their message to
the specific target audiences. We have found that, on average, advertisers who
successfully leverage programmatic creative have more than three versions of
each ad size per campaign. When you add all of these costs together, the price
of a campaign skyrockets. This causes Return on Ad Spend (ROAS) calculations
to look a lot less desirable, even bringing them into the red (see Figure 5).
© 2014 CPXi
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