Programmatic Job advertising caused a lot of ink to flow since we first heard about 3 years ago. According to Kenneth Kulbok from LinkedIn, Programmatic Advertising is ‘buying digital advertising space automatically, with computers using data to decide which ads to buy and how much to pay for them’. Therefore Programmatic Job Advertising is the process of using marketing best practices and tools to build awareness about your opening position. Such methods are broadly used in the US and the UK and start spreading in the rest of the European Union.
What is Programmatic Job Advertising?
Programmatic Job Advertising is a new way to post job advertising that has been revolutionizing the talent acquisition domain for about three years. In fact it can be split in two different segments. One, the most used one, within the job-boards, and the other completely outside the job-board.
In fact this technology generates more efficiency by automating some of the manual process. It helps talent acquisition professionals to do what they aren’t capable of doing by themselves: make buying decision according live data and a pre-determined set of characteristics in a split second. In short they use the best marketing methods to target the segment of the market that could be interest by your job position. In order to do so they collect data about users and correlate it to find the profiles who would be more likely to click and apply to your job offer.
How does it Work and why does it work.
But clearly how does it work? Well Programmatic job advertising mostly runs on performance-based prices such as cost per click or cost per applicant. If you purchase this type of media you would only be charged if you received clicks or applicants. Therefore it is not sold on a contract-basis like other job posts since you only pay after you see the results. In fact it is sold via a “biding” system based on the demand and competition at a given price which will determine the price per click or the price per applicant.
The first way to do programmatic job advertising, as said above, is within the job-boards. Actually, we will use this cost per click or applicant to buy according to real time data and a set of characteristics, more or less spaces on different job boards.
The second way is outside the job-boards. That is to say that Instead of working with job boards, they will buy spaces, banners etc. in any website. Just as regular ads.
We can definitely say such technology can help companies easily optimize their spending and the results of their recruitment budgets by using real-time data. Programmatic helps monitor what you want to buy per click or per applicant in a more proactive way and enlarge the scope of your campaign by reaching to jobseekers, or not (if you opt for the second way). This popular technology is mainly used by companies such as Appcast, Recreuitics, or golden Bees.
What does it mean for the future of HR field?
Programmatic job advertising is thriving, especially in the US and the UK. In fact recruitment industry experts predict that by 2020, 80% of all recruitment advertising will be based on programmatic campaigns using big data. Also, we have seen that, according to Zenith Optimedia, programmatic ad has been rising at a rate of 71% per year since 2012 in the world. This means that it went 5% of the expenditures in advertising in 2012 to 58% today. This rate is even higher for the leading countries that are the US (62% of the expenditure are programmatic advertising which represents $24 Billion) the UK ($3.3 billion) and China ($2.6 billion).
Given the changes programmatic brought to the advertising field, we cannot neglect the changes it will bring to the HR field. In fact it means that less people will be needed to recruitment marketing to do things that can be automated. Meanwhile we will need more people to understand data and use it to match the recruiting goals. This also means that companies will have an expert (internally or externally) to help them use this new technology. Someone who understands data and can translate budget and needs of the company into an effective strategy. And finally that the current technologies in programmatic job advertising will move from performance based advertising channels to technologies that can also automatically use credits companies have bought from non-performance based recruitment advertising channels. . But we cannot avoid talking about the possible limits of this trend.
The possible downsides
In fact, there are some important limits, we cannot work programmatic job advertising as we work programmatic buying for traditional ads. Usually algorithms process huge amount of data to define which ads should be placed where and when. This is made possible thanks to the equally huge amount of interesting data user leave behind them (gender, age, interests, localization…) that can be correlated to find a buyer profile. Meanwhile users don’t usually leave data behind them that may help predict whether they are engineers or a salesman.
Moreover some limits such as the massive number of people using ad-block software (software that will stop ads from showing up) could make it less interesting to us programmatic.
In fact in France 34% of the population use an ad-block software. Worldwide, it’s more than 615 million of devices that are affected (15% of the Internet users)
Plus without the proper analytics programmatic job advertising isn’t worth it, we don’t know for sure where our ads will show up, and if the price per click is lower, it’s possible to end up with a numerous amount of irrelevant clicks.
In the end it is not possible for now to say whether it is the best solution for quick, low-cost, efficient recruitment campaign since there are many grey areas. It would definitely improve the efficiency of recruitment if we were able to collect more relevant information about users, which is going to be more and more complicated in Europe given the new legislation (GDPR)
Finally we must not forget the strength of Job-boards. Even if programmatic job advertising seems tremendously fantastic on the paper, it is important to moderate. Programmatic job advertising outside the job-board will surpass traditional job-boards with difficulty since job-boards create more traffic by retargeting job offers and serve as important market places.
We hope you have found this article “Programmatic Job Advertising and its potential to cross the European borders.” useful! Please let us know if you’d like us to cover any specific topics in the Jobboard Finder blog