Great discussion here - love the talk about programmatic advertising!
Making the best data-driven decisions is imperative with recruitment budgets. There are a number of ways to do that, and programmatic software is an automated example to leverage technology, to eliminate wasted spend, and to improve ROI. Recruitment teams could manually perform the tasks of posting jobs, taking them down, monitoring budgets, adjusting bidding, tracking application totals, etc. But using a software platform that automates all of those areas, it gives recruiters more time to talk to the people who want to work for you.
In the staffing industry, with a budget of $2,000/month or higher, just about every single company has some type of wasted spend in that budget. Programmatic software can help every single company to manage their current Indeed and/or ZipRecruiter budgets more efficiently. The budget doesn't need to be on new job boards. Companies can still advertise on Indeed and/or ZipRecruiter, but leveraging the automation and technology of the programmatic software reduces/eliminates the wasted spend. The only thing that changes is a split-second in the middle where the programmatic software applies your strategy before going to the job boards.
Some examples of wasted spend:
- Too many applications on jobs (I had this conversation last week with a client who had 4 jobs with 80-110 applications on those openings)
- Too few applications on jobs (very common right now unfortunately)
- Advertising on the wrong job boards
- Putting the wrong amount of budget on the wrong jobs (high-priority jobs should receive the most, then medium, then low)
- Using the wrong job titles
On top of the case study examples that David shared above where programmatic software helps make better data-driven decisions, here's an example of analysis that we ran this week for a trucking company. They sponsored the same exact job openings, just different compensation during the past 2-3 months:
- $1,000 sign-on bonus and a higher wage: 106 applications
- $1,000 sign-on bonus and a lower wage: 57 applications
- No sign-on bonus and a lower wage: 18 applications
Now the company has the data to make compensation decisions. Application dropoff is significant and application cost increased by 2X to 3X. The programmatic software centralized all of their recruitment budget and simplified the data collection for the analysis.
As for the discussion that Susie brought up about programmatic not working - that example feels like purchasing from a programmatic job board. (
The best analogy I have is that a programmatic job board is a mutual fund vs. purchasing directly from Indeed/ZipRecruiter is buying a direct stock). The differentiator for a programmatic job board is its algorithm. It analyzes your job title, the geographic location of the job, and the job description. The algorithm looks at its network of job boards (
thousands of local, regional, niche job boards) to determine how to get your job in front of the right person at the right time. By not buying directly from a job board, we have heard of some issues that Susie raises. I think that's the transparency point that David brought up.
That negative experience with a programmatic job board doesn't mean that programmatic doesn't work at all. We have seen programmatic job boards work well for some companies and not work well for some companies. Application costs are higher than a quick apply on Indeed/ZipRecruiter.
To wrap up this long-winded post, a programmatic job board won't work for every company, but for companies spending at least $2,000/month on job boards, evaluating the benefits of using programmatic software to manage the Indeed/ZipRecruiter spend should definitely be considered.
Matt
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Matt Lozar
Director of Recruitment Marketing
Haley Marketing Group Inc.
Williamsville NY
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Original Message:
Sent: 02-10-2021 10:11
From: Brian Bowman
Subject: Programmatic Job Advertising: Great stuff? Too complicated?? Works ... but time too time consuming?? Feedback wanted
I need to disagree with you on it's value. It's unfortunate you had a bad experience....
Then again, this could be said for probably 50% of all businesses who spend money on advertising at large. Half think it's a waste and the other half think works.
That said -there is NO DOUBT that the market is / has moved into programmatic job distribution. If it wasn't providing the majority a strong benefit - the market would not be growing so quickly.
Conceptually - the job distribution model is no different than the old spread your marketing message around back in the days of just newspaper, radio, television. Then it expanded to cable tv, satellite tv, and of course online digital advertising. The point is to spread your message into multiple channels to expand your audience reach. Some prefer a very focused media buy, .... and often that is due to limited budget. However, the notion of using sophisticated software that can in fact spread the media buy (for recruitment advertising in this case) as i see it affords businesses the ability to get cost efficiencies on a CPC or CPA basis that utilize a single source, such as Indeed, Monster or Careerbuilder can deliver. It only makes sense -on a single platform - such as Indeed - you are competing for exposure...at higher and higher costs. Yes, the volume is there - but not necessarily at the most efficient media buy. Further more - you are still not reaching the non-Indeed or non-Careerbuilder market. UNLESS, they also offer distribution jobs beyond their boards. Then again - that WOULD make them job distribution folks :-). You know the old saying - if you can't beat em, join em. From what I see -Monster DOES distribute ... but to "their" network
I can see why Monster, Indeed or CareerBuilder offer some sort of distribution - and it sounds good that it's to "their" network. But their network, is but a fraction of the bigger network out there. My two cents from observations and conversations thus far. Appreciate your input though and in sharing your experience Susan.
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Sincerely,
Brian Bowman
President / CEO
LocalJobs.com, LLC
(828) 209-1010
brianbowman@localjobs.com
Original Message:
Sent: 02-10-2021 08:40
From: Susan Dietrich
Subject: Programmatic Job Advertising: Great stuff? Too complicated?? Works ... but time too time consuming?? Feedback wanted
I have posted on this forum before about Programmatic Advertising because it was a total disaster for me. It was so bad that I reported my experience with it to Talent Tech Labs for them to research it since they are the experts. After they did, they posted a whitepaper on it. Talent Tech Labs concluded that the spend needed to be above $100,000 or your ads would go to the "free" boards and we all know those aren't really free. When I asked friends at the national agencies, two of them told me that the spend needed to be $250,000. So, unless you are one of those super big guys or you hire an agency (fees there too) to constantly police them for you. I would certianly NOT recommend it.
Further, I would recommend that you talk to your Monster, Careerbuilder or Indeed rep about programmatic to get the real truth.
Thanks
Susie
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Susan Dietrich
Principal
AllTek Staffing Inc.
Pittsburgh PA
(412) 701-9001
Original Message:
Sent: 02-08-2021 12:43
From: Brian Bowman
Subject: Programmatic Job Advertising: Great stuff? Too complicated?? Works ... but time too time consuming?? Feedback wanted
Hi All,
I find this subject quite interesting....and opinions vary depending on whom you speak to.
I'm hoping to gather greater insight for myself about just what those active on the ASA job board think of Programmatic Job Advertising.
Specifically - and to be transparent - as an ex-broadcast advertising manager, I spend many years around the buying and selling of broadcast media. To see this principle in the online job advertising business interests me greatly. To me - it makes a lot of sense; however, it is somewhat surprising to me how many staffing firms have not yet really embraced this concept...or as is often the case...are not really even too clear on exactly what 'programmatic' job distribution advertising is really all about.
That said - I'm trying to poll the audience for better input. Here is the question and possible answers:
What are your opinions about PROGRAMMATIC JOB ADVERTISING?
Would love to hear deep answers if you care to share; however, if you are short on time - maybe you could just answer using the number that is closest to your thoughts:
Answer options:
1. I have heard of programmatic job advertising - but could not articulate it's real benefits. Have not tried it.
2. I am aware of programmatic job advertising; however, I find it too complex or time consuming to initiate for my business.
3. I am have not heard of programmatic job advertising.
4. I have tried programmatic job advertising - managing it myself (or with an employee on staff) - but it didn't work well for us.
5. I have tried programmatic job advertising through an agency - and it works well for us.
6. I have tried programmatic job advertising myself or through an agency - and it was not worth the time and/or expense.
Any insights you care to share again are appreciated. Have a great day!
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Sincerely,
Brian Bowman
President / CEO
LocalJobs.com, LLC
(828) 209-1010
brianbowman@localjobs.com
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