6 things to know about programmatic advertising in Finland
Programmatic advertising is no longer bad quality banners on media placements that no one wants. Today, it has become the mainstream way to advertise for big brands like P&G, Amazon and Netflix. It allows you to use complex creatives such as the car customizer, gather survey data or reach users with highly targeted audio ads. The adoption of programmatic continues to grow in Europe every year, and the Finnish market is no exception. According to Interactive Advertising Bureau (IAB), the share of programmatic in advertising spending grew from 26 to 43 percent in Finland in 2017. As it reaches 50% this year, here are 6 things every marketer should know about programmatic advertising in Finland.
1. What Are the Benefits of Programmatic Advertising?
Programmatic advertising optimizes most of the manual work of sharing your message across different channels. You can spend more time on optimizing and designing creatives since the algorithm will take care of the rest.
Another major benefit is that, with real-time granular data and insights available, you can get a deep understanding of your target audience. You can measure your campaign’s success immediately without having to wait until it ends. This allows you to react to results instantly and see the impact on micro transaction level, leading to highest investment efficiency. This makes programmatic the most effective way to advertise.
The third big benefit of programmatic advertising is the potential reach it has compared to traditional advertising. According to Mary Meeker’s 2018 Internet Trends Report, the average adult spends 5.9 hours per day with digital media, up from 3 hours a day in 2009. Programmatic advertising provides tools for meaningful communication along each step of the online journey.
2. What Are the Possibilities with Programmatic?
Programmatic advertising is full of possibilities to tailor campaigns according to your business needs. You can target relevant audiences based on their interests or location. For example, if you are running a web store that sells raincoats, you can boost your ads during rainy days and promote less when the sun is shining.
You are not limited to banners either. You can also choose video and audio formats and reach your potential and current customers on LinkedIn, Twitter, Ruutu or pretty much any other online channel you can think of. Digital Out of Home screens are expected to accelerate the growth as the availability to advertise programmatically on billboards continues to grow.
3. What Are the Channels You Can Reach Programmatically in Finland?
As Finland has caught up with programmatic adoption, there are a variety of media channels to reach your current and potential customers at the right time and with the right message.
For instance, programmatic enables travel service providers to reach people watching travel vlogs with a message promoting their dream vacation. With video currently being one of the most powerful branding mediums, you can find a great addition or even substitute to traditional TV advertising in programmatic.
The same goes for audio – your target customer can be reached with relevant programmatic audio ads during the morning commute as she is listening to her favourite self-improvement podcast.
Most web pages have advertising spots that are reachable programmatically. Moreover, they are supplemented by continuously growing in-App inventory. For those who are new to the term, it describes mobile applications, such as HS.fi or Spotify that have advertising spots.
Recent addition to the programmatic channel family, digital out of home, is a great way of one to many communications. This will allow you to introduce, nurture or drive foot traffic to your business locations during key moments.
To sum up, the main channels to talk to your audience on are: display, video, audio & digital out of home.
4. What Are the Best Banner Formats to Use for Programmatic Display Advertising?
Due to the mechanics of programmatic, publishers like Sanoma or Alma Media have predefined banner sizes for the placements. The most popular and least expensive banner formats are 300×250 and 728×90, though both sizes are my least favourite as they are quite often too small to look nice, get noticed and drive performance. My personal favourite has been 300×600: It is large, usually looks good and delivers great results, so at least at the time of writing I would recommend including it to your campaigns.
You should always run at least 4 different formats for test and performance purposes. Besides the ones mentioned earlier, the most popular are: 300×300, 160×600, 980×120
5. I Want to Test Programmatic Advertising; How Long Should the Test Period Be?
There is no magic number – it all depends on your campaign goals and targets. However, you should run the campaign long enough to gather data and be able to optimize the campaign to reach its full delivery potential. My recommended test period is three months, but you should always keep in mind your business seasonality and the average length of your user journey.