The concepts of transpromo and programmatic advertising are part of a broader concept called precision marketing, which is essential to succeed in today’s marketing world and meet growing customer expectations.
We already know that most marketing terms come from the U.S., so we must refer once again to English to know the origin of the word“transpromo”: it is the combination of “promotion” and “transactional” and consists of taking advantage of documents for transactions carried out by customers (bank statements, invoices, receipts) to insert ads in an automated way in these advertising spaces. And here comes into play programmatic advertising, in which, in an exciting game of supply and demand, advertisers and media buy and sell advertising space. Under these premises, companies can better target their ads, reach their target audience more precisely, accelerate the creation of ads, and access a wide range of spaces and media in a matter of seconds.
It is all advantages and all the above fall under the broad umbrella of precision marketing. Given its undeniable importance in today’s advertising, it is worth getting to know this term better. Precision marketing is born out of the digital and data-driven marketing revolution. And what does this revolution consist of? Most processes have been digitized, there has been a veritable explosion of customer touch points, a huge amount of both personal and anonymous data is generated, and powerful new technologies have emerged, completely changing the advertising landscape, e.g., real-time auction and data management platforms.
And this revolution has given rise to a new context in which companies have new ways to reach their customers (segmented activation tactics, advertising sequences), new competitive advantages come up based on consumer data, and new skills related to data, its analysis and the mastery of technology are needed to implement concepts like transpromo and programmatic advertising, among others. Not to mention new ways of working that revolve around consumers and a test-and-learn or, seen another way, fail-fast mentality, in which minimum viable products are launched and refined through iterations.
But revolutions always disrupt established paradigms and fill CEOs’ heads with questions: Is my marketing aligned with business objectives? What is my data strategy? What technology stack should I implement? How do I take advantage of new platforms (mobile, social media, video)? How should my company adapt? Which partners should I forge alliances with? How can I draw insights from data and measure results?
Precision marketing best practices can dramatically reduce digital marketing spend across industries, optimize the return on marketing investment (ROMI), increase business revenues and web traffic, improve efficiency, lower customer acquisition costs, boost customer loyalty… the list is almost endless. In a nutshell: precision marketing can double the return on advertising campaigns and investments.
Precision marketing brings us to another fundamental term in advertising today: segment of one. After all, transpromo and programmatic advertising seek to refine targeting and customize ads as much as possible. The extreme at the end of this process would be segment of one. Although it may seem unattainable, it is becoming less so thanks to the cutting-edge tools and technologies that are becoming available to marketing teams.
Artificial intelligence and machine learning algorithms, integrated into advanced databases, allow advertising to be personalized to limits that seemed like science fiction only a few decades ago. These databases record customer preferences and buying behavior. Consumers are much more demanding and expect a 100% personalized approach that fits their individual needs. Mass marketing is over. No one pays attention to one-size-fits-all messages. Consumers know what they want, and they want it as soon as possible. They also like stability and long-lasting relationships with companies that understand them.
But to win over customers, companies must invest in tools to improve their service level: a comprehensive database including their customers’ buying behavior, training programs that teach staff how to personalize customer service and a personalized program for ongoing communications with customers. This is why segment of one is so important in managing customer communications.
Within personalized communication, it has been shown that even direct mail, which is not usually an attractive medium in such a saturated environment as the current one, can be powerful when it comes to establishing individual communication with customers. There are companies that even personalize their magazines according to the preferences of each customer.
Communication at the point of sale has also gained ground, but the kings of one-to-one segmentation are TV and mobile streaming platforms. Netflix and TikTok use algorithms that allow them to offer content tailored to the taste of each person, designed to make us watch their content continuously and almost addictively (or without the almost).
It is therefore clear that the concepts of transpromo, programmatic advertising, precision marketing and segment of one are part of a virtuous circle that every company should implement to expand its customer base, reach customers in a personalized way, establish individual communication, and build customer loyalty. This will undoubtedly translate into increased revenues and profitability of marketing activities. The challenge is there. And whoever does not decide to tackle it will inevitably be left behind in a technological world that is advancing by leaps and bounds.
For more information about TransPromo, check out this related article:
TransPromo Messages: The Intelligent Customer Touchpoint
TransPromo Advertising: What Is It and What Are Its Advantages?