“Programmatic allows the right content to appear to the right user at the right time”
The exchange4media group hosted the e4m Xaxis Programmatic Summit yesterday, December 17, 2021, where the e4m-Xaxis programmatic report was unveiled, followed by a half-day conference. Sankalp Mehrotra, VP of Monetization, Flipkart in a fireside conversation with Neeta Nair, Associate Editor, IMPACT Magazine shared valuable information on “commercial and programmatic advertising”.
Opening the session, Nair asked Mehrotra a question about today’s digital advertising market and the role of programmatic advertising. Mehrotra shared, “Most of these estimated numbers vastly underestimate the true size of the digital market. In the past year, the digital advertising market is said to have already reached around 30,000 crore. When we see digital as a global opportunity, it is much bigger than what you might think. As internet penetration continues to increase, the share of digital spending will only increase. The entire commercial advertising space becomes active and huge investments are made in this space. “
Speaking about the scope of programmatic, he added, “The job of programmatic is really to deliver precision and efficiency at scale. Today, the entire digital universe is pivoting more and more towards performance marketing and I would not comment on whether this is good or bad. There are sectors that rely heavily on programmatic such as games, all consumer technologies, fintech, BFSI. The reason is that they want to reach the most relevant consumer at scale. We’re already heading in a direction where programmatic makes a lot of sense for many brands and we’ll see more adoption in the years to come. “
Earlier in February of this year, Flipkart launched a bespoke Demand Site Platform (DSP). Asked about receiving the DSP, Mehrotra replied, “Users take a lot of actions on our platform – they browse categories, add to wishlist, use multiple payment methods, etc. Right now what we’re doing is turning that piece into a knowledge user. What we’re basically trying to do is figure out the user’s intention somehow taking into account what a user is trying to achieve / achieve. If you think of us as a platform, one job we do well is hyper-personalization. So far, we use all of this information to serve advertisements on the platform. We take a step forward in the narrative, the cohorts we use to target users on Flipkart, or to present relevant content to our users are the cohorts we also use on our DSP. Whether you’re retailing today on Flipkart or not, you can use all of that intelligence to deliver the right kind of communication to the right kind of user.
Although there are two ways to approach a DSP, one being data scale and the other being data richness / depth. According to Mehrotra, it is the depth of what Flipkart is capable of bringing to consumers that will remain paramount. He added, “You can get unlimited inventory from multiple supply sources. What makes the difference is what kind of layering you can do on top of that supply. We understand user signals well, we understand their intent well. Then we are able to customize based on which cohort works well on which consumer. All this intelligence is available today on our DSP. So definitely between scale and depth is the depth of what we are able to provide to consumers.
Today’s consumer is evolved, digitally aware and savvy. Concluding the session on the benefits of programmatic or Flipkart DSP for the new age consumer, Mehrotra explained, “We see advertising as a specter. As customers, your intention can be broken down into four parts. There are times when you have a strong intention, a latent intention, a nascent intention, or a new intention that needs to be created. Someone with a very strong intention will go and find the product, the job of advertising is then to bring out the solution that the user is looking for. In case of latent intent, advertising can do the job of recall. In the case of nascent intent, advertising can amplify it by presenting products and services based on their past behaviors or browsing habits. When it comes to creating new intention, advertising can inspire, you can show them something that they need but don’t have. Since the customer is digitally intelligent, that doesn’t mean advertising has no role to play. The advertising need is advertised based on the consumer intent phase. Programmatic is meaningful in this environment because it allows the right kind of content to surface to the right kind of user at the right time based on intent.
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