Data management programs enabled with technologies have completely changed just how marketers buy media today. A lot more companies are embracing technologies that facilitate media transactions in real-time as well as at the granular level. Programmatic buying ecosystem is at the core on this revolution and contains triggered a paradigm shift from medical marketing agency buying to targeted ad placements based upon user behavior.
Programmatic buying means sale and purchase of media live in an automated manner through software and algorithms. Automation is real-time and accurate to such extent that this not merely saves time but additionally improves efficiencies regarding ROIs and reaching a target audience with laser-guided precision.
While Programmatic buying has not yet yet taken the healthcare domain by storm, a buzz throughout the topic has begun getting louder in recent years.
Media buying in healthcare quintessentially is carried out a normal manner through sales teams approaching publishers either offline or on the web and then go via a long process RFQs, negotiations, preparing artworks and specs modifications, purchase indenting, vendor onboarding and ultimately releasing payment. And all of this convoluted process has to undergo just before the ad is even published. Hence there is a lag between purchase intent and actual media release. And that is certainly what Programmatic is nice at solving.
So how does Programmatic buying works and why hasn’t it caught the imaginations of healthcare marketer yet? We will dig into details.
How exactly does Programmatic Buying Works? The Programmatic Ecosystem
First, we will understand some commonly used terms found in the Programmatic Buying world and in addition the way the Programmatic ecosystem really works.
When a user clicks on an online page which has an advertising space on it, the publisher of the web site sends a cookie to user’s browser (Chrome, Internet Explorer, Bing… whichever).
Exactly what is Cookie: Cookie, in simple terms, is actually a small data file which is sent from publisher’s web server to user’s web browser which serves to determine user’s identity
Just in case an inventory (advertising space over a website) is on sale, it triggers a request from publisher’s Ad Server for their Supply Side Platform (SSP) to fill the Ad slot
Definition of SSP: It may seem of Supply Side Platforms (SSPs) like a library or storehouse of Ad Inventories designed for placing your advertisement. It is a platform that connects sellers (websites, blogs, directories etc.) with buyers or advertisers who compete against each other for available Ad space.
Several of the famous supply side platforms are AppNexus, PubMatic, AOL or Google’s DoubleClick Ad Exchange.
SSP then issues a bid request to Demand Side Platform (DSP). This bid request contains information about the user who is about to begin to see the Ad like her demographic profile, browsing history, etc. These details helps DSPs to create a knowledgeable decision in regards to a user before making a bid.
What exactly is a DSP? : Demand Side Platform or DSP, as they are referred in programmatic world, can be a doorway to purchase advertising space within an automated fashion. Think of DSPs as advertiser’s gatekeepers who matches inventories with buyer’s marketing objectives. DSPs make bidding decision with respect to a buyer after evaluating parameters like publisher’s profile, ad placement, a floor expense of available impression, etc.).
A few of better-known DSPs include DoubleClick Bid Manager by Google, AdMission, MediaMath etc.
Based on the algorithm, DSPs assesses inventories to find out how valuable the sense is and if they should take part in the auction on behalf of an advertiser. If DSP decides to participate in in bid auction, it sends a bid response straight back to SSP
SSP gathers all bid responses and picks a winner in line with the second-price auction, which means, the one that bids slightly on top of the second highest bidder.
SSP notifies winning DSP and also the DSP, consequently, sends Ad serving code to SSP. Finally, SSP passes on Ad serving code to user’s browser and renders the Ad. The Ad will be served along with other content with a web page.
And all of these steps transpire at the lightning speed behind end whilst the page loads!
Forms of Programmatic Buying
Programmatic Buying, as you may know now, is automated buying of ad space with a website. You can find fundamentally 2 forms of programmatic buying depending on regardless of if the ad space or inventory is bought through auction (Auction based) or by paying a set rate for the publisher (fixed price).
Open auction: This is founded on real-time auction-based bidding. Most prevalent of most programmatic buying
Invitation-only auction: This too is auction-based but bidding is restricted to select advertisers selected by a publisher. More premium inventory sold in a higher price. Some publishers give ‘first look’ benefit to some advertisers before ad space is visible to others
Unreserved set rate: Cost is prefixed but no ad space is scheduled aside upfront
Automated guaranteed or Programmatic premium: It is really an automated procedure of buying guaranteed ad space that doesn’t involve an auction, where the pricing is prefixed and impressions are guaranteed. Generally, this kind is most premium of all.
Scope of Programmatic Buying in Healthcare
Programmatic marketing has not yet taken health care industry by storm yet by any stretch in the imagination, especially so in India. Even though this marketing phenomenon is discussed in marketing conferences and agency boardrooms but its role continues to be restricted to lexicons and concept rather than on actual spending of promoting dollars. Out of the global spending of USD 22 Bn on Programmatic buying in 2015, spending in India was a mere USD 25 M which makes it just above 1% share (Source: Media Global report cited in eMarketer )
By 2018, it’s projected that this health care industry will spend $2.2 billion on digital media. With roughly 40% of all media buys being programmatic, healthcare marketers possess a great opportunity on his or her hands. Not just is programmatic the newest buzzword, yet it is estimated that 70% of most media buys will probably be programmatic in 2016. That’s significant growth over two years.
Healthcare media buying in India remains to be predominantly carried out by traditional spray-and-pray, at best loosely targeted media campaigns involving humans (read- sales team) that negotiate with publishers or media agencies to get ad space or inventory. Programmatic buying, however, allows precision and previously unthought-of granularity to attain target customers with better engagement and reduce costs. Let me present some real world scenarios to bring home the impact of Programmatic Buying dental online marketing.
Imagine you might be visiting nearby pharmacy store to purchase sugar control medication after doing a little online search about medicines dosage and adverse reactions. Suddenly your smartphone buzzes. Curious to understand, you check your inbox and look for email message inviting you to definitely take a free diabetes check-up at a Clinic simply a block clear of where you stand.
Almost scary, isn’t it! Well, this is just what Programmatic can do. It reaches your predefined customers or audience on the right moment with a right message. And all sorts of this occurs in milliseconds in a automated fashion, due to footprints, or say Cookies, you left while searching the net.
Programmatic buying has evolved the approach from rendering same advertising message to millions of customers to creating a distinctive message for individual customers based upon her need at that moment of time. A evidence of concept for this may be how medical health insurance may be bought utilizing a Programmatic platform.
As you were renewing health care insurance policy online for the parents, an advert banner flashed across your laptop screen proclaiming to supply better coverage with add-ons in a lesser premium. Your message is so timely and apt that you could not resist but clicking the ad. It feels that ‘someone’ is after the foot trails online. It ends up that there is actually ‘someone’ that follow users to supply messages that happen to be very apt and timely.
In ways, data analytics is definitely the lifeblood of automated buying. Although a tremendous level of information is gathered inside the healthcare industry, as an illustration, a hospital, little or no of it is commonly used effectively to develop effective data-driven strategy.
First party data sources in hospitals like patient registration kiosk of Hospital Information System, CRMs or even a Website could be used to capture customer intent by placing a cookie on customer’s browser that may then follow and track a customer’s online journey and place meaningful and compelling messages to get engagement with patients or customers. This primary data in addition to a second-party data from affiliates or online subscription agencies and third-party data bought from outside data aggregators like telecom companies, other CRMs etc., is clustered to make homogenous group of audiences having similar traits like age, web browsing history, online purchases, content sharing on social media marketing, medical content consumed, etc.
Let us conjure up a probable scenario for a hospital that is about to launch Diabetes Management Program and wants to reach targeted audience making use of their primary data base gathered over past years. Data points like e-mail address and contact numbers of patients undergoing care under endocrinologist would develop into a good audience pool to operate targeted messages using GSP (Gmail Sponsored Promotions) or RLSA (Remarketing Lists for Search Ads) campaigns. While a GSP would enable messages to get shipped to prospective patient’s Gmail inbox, the RLSA campaign would make certain that message is rendered on user’s SERPs wherever they go online.
The great thing of programmatic advertising is it can integrate all media delivery options and give you the message to right audiences wherever they live online whether it be video, search ads, mobile, display or social networking. Such media optimization receives a captive and engaged audience to marketers leading to maximum value out from marketing dollar spent.
Say you need to target women within their early 40s residing in North Bangalore for promoting cancers of the breast screening. Programmatic-way of carrying this out is deliver your message for the in-market audience directly by capturing basic patient’s intent and then tracking their online behavior. As an example, say 45-year old ladies who visited your Oncology website and is also searching information online on “prevention of cancer of the breast”.
Programmatic Buying lets you focus on your specific potential audience who is with the far end of buyer’s journey and it has a higher propensity of purchasing if your message touches their cord. Programmatic Buying helps to track investment or in other words, makes returns attributable. Advertising has turned into a niche endeavor and Programmatic Buying comes as being a potent tool in marketers purpose to unravel key steps to niche marketing.
Programmatic Buying includes its share of challenges and unethical practices that digital marketers have to stand guard against. Such bad practices permeate all over the Programmatic ecosystem and they are omnipresent across industries including healthcare.
In a highly regulated healthcare sector, these challenges are more evident. So allow me to address some burning issues plaguing the Programmatic Buying in healthcare
1) Restrictions on retargeting: Hospital industry has become slow to adapt programmatic buying because medical ethics restrict any type of advertising to patients, the audience retargeting using cookies
2) Ad misplacement: Ad placement while attempting to reach a prospect, say a doctor inside a non-clinical environment similar to a Game Center or Expedia Travel site could actually dilute incredible importance of brand and message
3) Control: As previously mentioned, Demand Side Platforms are aggregators of inventory to make them available for Advertisers. However, in medical industry, not many reputed medical publishers like PubMed, WebMD, The Lancet, NEJM etc. may renounce control of their inventory to allow open ad ecosystem like Programmatic dominate. That is why most medical publishers still prefer reserved, non-auction based upon programmatic buying like either Programmatic Direct.
4) Higher costs: On account of publisher’s reluctance towards open-auction bidding in healthcare for reasons stated above, cost per impression (CPM) is higher than in other industries like retail and travel.
5) Inventory scale: Since ad spaces on medical sites is limited and finite, mostly they are bought via direct 1-to-1 Publisher-Advertiser model resulting in inflated CPMs and suboptimal performance parameters (read ROI)
6) Stale-on-Sale:General impression is that a media bought through Programmatic model is generally a leftover, remnant inventory. This is simply not entirely untrue in healthcare either. Media space buying in healthcare predominantly is through either direct buyout involving humans or direct buyout involving automation, called the Programmatic Direct. Hence, what is left is a less coveted, tier-2 inventory. Although buying this inventory may help derive engagement at much lower cost.
7) Private Healthcare Ad Exchanges:In view of medical data security, misplacements and privacy issues in healthcare, some proponents of exclusive healthcare ad exchanges emerged. Actually there are already some media buying platforms in healthcare like MM&M, Compas etc. that permit automated buying to healthcare publishers. However, given that transparency and neutrality of open buying platform will be compromised with your agencies, there is very little incentive for advertisers to do business with such private ad exchanges. Besides, scale and inventory provided with such private exchanges is also limited in comparison with full-service media agencies.
Aside these challenges that are specific to health care industry, Programmatic Buying has some inherent problems that are pervasive across industries. For example some outlined below:
8) Non-human traffic: Non-human traffic or the NHT as it is commonly referred in Programmatic world is the most prevalent type of fraud whereby programs imitate desired online behavior and register false matrices like impressions, views or clicks. Bots pretend to be actual humans while actually they are piece of malware that inflates the performance matrices by masquerading as organic activity. Common samples of this is paid ‘likes’ or ‘ 1s’ on social networking.
9) Viewability: Viewability is the prospect of an ad to be seen. Frequently a big proportion of impressions that advertisers pay for goes unseen either because of below-the-fold 60dextpky or user might scroll a page too rapidly to discover the ad.
Ad blocking: Today’s sophisticated programs allow users to eliminate advertising while browsing the world wide web or using apps. Most publishers and professional bloggers depend upon advertising because the main supply of their revenue. Along with ad blocking in position, a blogger would lose a motivation to generate free-to-consume content unless the alternate stream of revenue is offered directly to them. Likewise, publisher websites get bored since their revenue model depending on content-for-advertising is compromised
Programmatic buying is a prominent inclusion in marketer’s quiver since last decade. Healthcare industry is slow to awaken to this particular phenomenon because of industry-specific challenges. However, adoption of web data, involvement of social websites companies and proliferation of healthcare specific ad networks to handle automated buying in healthcare would only mitigate these challenges.
The marketing for plastic surgeons including hospitals and pharmaceutical companies can be wise to consider programmatic buying as an element of a core marketing plan and move from broad, segment-based marketing to specific fine-grained messages crafted to draw in, nurture and convert prospective customers or patients.