You may have heard that Programmatic Job Advertising can enhance recruiting efficiency, but what exactly is Programmatic Job Advertising, and what value can it impart to your recruiting function?
What are Programmatic Job Advertising Platforms?
Programmatic Job Advertising platforms, part of the Job Advertising vertical, allow users to manage and allocate their recruiting budget across a network of different job boards and publishers, analyze vendor and job-specific performance, and make adjustments in real-time.
Firms in this category use tools common in the traditional advertising world (such as real-time bidding to buy job ads, programmatic rules for job distribution, budget capping, etc.) to drive better performance and optimize job ad spend. While programmatic advertising has been used in the product, B2B, and B2C realm for decades, its use in employment marketing and recruiting is a more recent development.
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It is helpful to be familiar with the common terms and definitions to understand Programmatic Job Advertising better. Programmatic Job Advertising borrows concepts and technologies from traditional advertising, including terminology that may be less familiar to even the seasoned HR or Talent Acquisition practitioner. Below we define some commonly used terms related to Programmatic Job Advertising.
Ad Exchange: This is the technical integration/mechanism by which a vendor can offer bidding/dynamic pricing capabilities on various job sites. Similar to the backend of a stock exchange.
Cost-per-click (CPC): This is the price a company pays every time a candidate clicks a job ad. Companies can increase (or decrease) the amount of money they pay-per-click to move their job advertisement to a more prominent position and generate more (or less) applicants.
Cost-per-placement (CPP): The amount of money it takes, on average, to hire someone. More specifically, it is [total money spent on job advertising] / [number of hires]. Like other performance metrics, this metric can be tracked across the business, for a specific job, location, vendor, or some combination of the above.
Cost-per-quality-application (CPQA): The amount of money it takes, on average, to generate a qualified applicant. More specifically, it is [total money spent on job advertising] / [total number of hires]. For example, if a company charges $1 a click and 100 clicks led to 2 qualified applicants, the CPQA would be $50. Generally, the goal is to get this figure as low as possible. Like other performance metrics, this metric can be tracked across the business, for a specific job, location, vendor, or some combination of the above.
Media: The “ad space” that is ultimately purchased through a programmatic campaign; the term can generally be thought of as a generic term for “job posts” or “job slots.” This term comes from the traditional advertising world, representing ad space regardless of channel or medium.
Network (or “Publisher Network”): The collection of job boards and job sites that your company can advertise on via your programmatic job advertising program.
Placement: When a candidate that applies through the programmatic job advertising network is hired.
Price-per-click (PPC): A term with roots in traditional media buying (most notably Google’s ad platform). Price-per-click is a pricing model where a company (i.e., your firm) pays when a candidate clicks on a job advertisement. It is charged regardless of whether or not that candidate is ultimately qualified or goes on to apply for a job. It is related to “cost-per-click” (CPC), which is the actual dollar amount that a company pays when a candidate clicks a job ad. Thus, PPC is the pricing model, and CPC is the metric associated with that model.
Publishers: More or less synonymous with “job boards.” The name comes from traditional programmatic advertising, where publishers are the companies/websites that generate (i.e., “publish”) content that end-users visit and consume (e.g., a popular online blog about denim jeans), and where various advertisements are placed. In the job advertising world, “publishers” are the job sites that your job post will ultimately be advertised on.
The Value of Programmatic Job Advertising
The business case and value propositions of any type of talent acquisition tool and solution is essential to understanding if it is right for your unique business case and if it is worth the effort and costs. Below we highlight the main benefits of a Programmatic approach to online job advertising. One platform and central location for managing job ads means having one view for all job advertising, making cross-vendor comparisons on performance much easier (and entirely based on data). This obviates vendor bias and preference.
- One platform and central location for managing job ads
- Performance-based pricing
- Data and analytics
- Economies of scale
- Efficiency of Vendor Management from One Platform
Our TTL Research Practices Guide, “Best Practices for Optimizing Programmatic Ad Buying,” provides more in-depth details on the above value propositions of Programmatic Job Advertising along with information around implementation.
By purchasing the “Best Practices in Recruitment Automation Process Automation,” you will gain:
- An overview of the job advertising landscape and Programmatic Job Advertising
- A comparison of Programmatic Job Advertising to other online job advertising models
- Pricing models for programmatic advertising
- Benefits and business for programmatic job advertising (particularly versus other channels)
- Best practices for running a programmatic campaign
- High-level implementation and strategic recommendations
Interested in learning more about our programmatic ad buying research? Click here!
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