Programmatic advertising has been around for a few years and is now also something that has entered recruiting. What is programmatic job advertising, why do companies use it and what does it mean for the future of recruitment?
Let’s start by explaining programmatic advertising. Programmatic advertising basically means that you let software buy and control advertising instead of humans. The goal is to reduce the cost of media and the cost of buying and managing the media, but more importantly: Running more effective campaigns, so getting a higher return on investment.
Programmatic job advertising
Programmatic job advertising means that you give software job advertising budget and input goals you want to reach and then let the technology do what it does best; get you as close as possible to your goals within your budget. For example you could say that you want to have 20 applicants on every job in your website and want to pay a maximum of 10 USD per finished application. The technology then measures how much candidates you are getting ‘for free’ in your website and figures out how much more you will need, then figures out where and when to ‘buy’ these applicants and then does that for you.
Why companies use programmatic job advertising
The reason employers, recruitment agencies and job boards are using programmatic job advertising is that they rely more and more on job aggregators who don’t offer a model in which you can post a job for a fee, but a model in which you can pay per click via a bidding model. This is a great model, but quite hard to manage. For example: If you have 1.000 jobs on your website, then how do you constantly monitor which job should be turned on and turned off in your platform based on the number of candidates you have for that position? And how do you determine how much budget you should give each aggregator and what the ideal bid per click is for every keyword/job? The more jobs companies have on their website, the more they spend on job advertising, the more it makes sense to invest in programmatic job advertising technology for them so they can run effective campaigns without spending too much money and time on them.
What programmatic advertising means for the future of recruitment?
Programmatic job advertising means that we will need less people in recruitment (marketing) focussing on things that can be automated and more people who understand data and the real recruiting goals of their employer. This means the life of the recruiter will get easier and every company will have an expert working with them (internally or externally) who understands data and can translate budget and needs of the company into an effective strategy. It also means more and more media channels will start offering performance-based advertising. Last but not least it will also mean 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.