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Machine learning technology + analytics increase value + grow non-dues revenue.

Associations and advertisers are capitalizing on the power of analytics and machine learning technology to drive non-dues revenue and sponsorship value.

With improved online advertising technology, there’s an opportunity for associations to efficiently buy space for their advertisers and increase non-dues revenue. As advertisers add programmatic advertising to their digital marketing efforts, associations and professional services firms that specialize in managing and advising non-profits are turning to their tech partners who have ad exchanges to aid their advertisers and clients.

Last year, revenues from real-time bidding (RTB)—programmatic advertising’s backbone—reached $1.6 billion; 34% of all display advertising revenues are projected to come from RTB by 2017. Meanwhile, 87% of advertisers see greater returns through programmatic advertising over traditional media buys, AdWeek reports. Near term, programmatic advertising is vital to any advertiser’s digital strategy.

That said, it’s time for associations to exploit growth within the programmatic ad industry and ride the wave of the future to grow non-dues revenue.

Programmatic advertising is powerful to advertisers. It takes advantage of machine learning technology and analytics, and it automates the processes that give them headaches. With RTB, parameters are set, such as bid price and network reach. A programmatic ad layers these parameters with behavioral or audience data within the same platform. In this case, using data from each association’s member base.

Advertising budgets, goals and attribution models become defined, while the platform nimbly adjusts dozens of variables in real time based on performance to determine the right campaign settings, achieving the advertiser’s desired ROI. Algorithms that filter impressions based on exact data allow associations and their advertisers to spend more time growing their business and less time reading spreadsheets.

Automated media planning through tens of thousands of ad exchanges delivers benefits to associations and their advertisers. Member-based data influences automatic cherry picking of impressions and optimizing at the impression level across the entire web. The automated placement process selects precisely who to serve impressions based on data advertisers think are pertinent to their campaign. A campaign ad may only show on a specific site if the right member browses that site.

The quality and targeted nature of member-based data provides advertisers with higher conversions. This results in recurring media buys and ongoing campaigns, generating new revenue for associations and more clicks and leads per ad dollar spent for advertisers.

American Marketing Association, the largest marketing association worldwide, is an initial user of programmatic advertising. “We’re always looking at opportunities to maximize revenue and profitability,” said Barbara Grobicki, Chief Alliance Officer, AMA. “Using this platform allows us to see exactly how to plan and execute campaigns, and deliver measurable value to our advertisers and sponsors.”

An advanced ecosystem has formed around programmatic advertising. Clearly, it will dominant market share of online display buys and rapidly evolve into an essential tool for associations to keep advertisers happy and develop new streams of non-dues revenue.