Programmatic advertising is changing the online advertising landscape. As businesses continue to shift ad spend to digital channels, the popularity of programmatic digital display advertising will continue to rise. Major players are already doing it and eMarketer predicts that “$81 billion (87.5%) of all US digital display advertisements will be bought via automated channels in 2021.”
But what exactly is programmatic advertising? And why should you consider it for your business?
What is programmatic?
Programmatic digital display advertising helps to automate the digital paid ad buying process through the use of intelligent software.
Essentially, it uses Artificial Intelligence and machine learning to automatically negotiate and purchase the best ads for your business while removing the human element of ad purchasing. It eliminates the need for RFPs and human negotiations in favor of a much more efficient and effective process guided by machines and algorithms. This frees up more time for advertisers to plan, optimize, and target their ad campaigns more effectively.
The two main types of programmatic advertising are Programmatic RTB and Direct.
Programmatic RTB uses a real-time bidding process that awards a specific, targeted ad spot to the highest bidder. When a user visits a website, the ads are placed up for auction, and the highest bidder wins the ad. Advertisers set their maximum bid and the ad buy process happens automatically in an instant.
Programmatic Direct refers to a process that buys ad space programmatically, but without bidding. Advertisers use Direct to purchase ad space that is guaranteed to display to any visitor that passes specific targeting criteria. The ads will typically run for a specific time frame or number of impressions.
How can it be targeted?
The ability to target specific users through programmatic digital display advertising is one of its most powerful features.
Advertisers can optimize programmatic ad campaigns by targeting based on a range of different variables.
- Time of day
- Ad format
- Audience segmentation
- Split testing
- Ad frequency
Thanks to the power of AI, programmatic advertising algorithms will quickly learn the best and most effective ways to reach your specific target market, getting better and better over time. This leads to more efficient use of ad spend and major increases in ROI.
Programmatic + Mobile
The power behind programmatic advertising becomes even more effective when specifically targeted and optimized for mobile.
Smartphones have become ubiquitous and it shows in the exponential growth in mobile usage. This has made mobile arguably the most profitable device channel to target. By combining the intuitive machine learning and automation of advertising with your mobile advertising campaigns, you can quickly deliver highly optimized ads that are targeted to the most profitable potential customers.
Great for branding
Programmatic digital display advertising brings more value than just financial ROI. It’s also a valuable tool for branding.
Programmatic Direct is a powerful brand awareness tool that allows businesses to systematically target and engage with their most ideal customer profile. It gives them the ability to “share space” with brands that they want to be associated with. This makes Programmatic more of an opportunity for a partnership to build brand awareness than a simple ad buy.
Although programmatic doesn’t completely eliminate the need for a human touch to digital advertising, it has huge benefits. Not only does it help automate some of the most time consuming aspects of traditional advertising, it also allows for more specific targeting, pairs well with mobile campaigns, delivers huge ROI, and is great for branding.
10 tips for success in programmatic display advertising:
- Define Your Objectives: First, determine what you want to achieve with your programmatic display advertising campaign. This will help you focus your efforts and ensure that you’re targeting the right audience.
- Understand Your Target Audience: Use data and analytics to better understand your target audience, including their demographics, interests, and behaviors. This information can help you create more effective ad campaigns.
- Use Quality Data: Ensure that you’re working with quality data by using reputable data providers and regularly monitoring and cleaning your own data.
- Test and Optimize: Continuously test and optimize your campaigns to improve their performance. This can involve testing different ad formats, targeting options, and creative elements.
- Utilize Retargeting: Use retargeting to reach people who have already shown an interest in your brand or product. This can help increase conversion rates and improve ROI.
- Leverage Programmatic Buying: Programmatic buying can help you reach your target audience more efficiently and effectively by automating the ad buying process.
- Choose the Right Ad Formats: Consider using a variety of ad formats, including display ads, video ads, and native ads, to reach your audience in different ways.
- Monitor Performance Metrics: Monitor performance metrics such as click-through rates, conversion rates, and cost per acquisition to ensure that your campaigns are achieving your desired results.
- Collaborate with Creative Teams: Collaborate with creative teams to develop eye-catching and engaging ad creative that resonates with your target audience.
- Stay Up-to-Date: Stay up-to-date with the latest trends and best practices in programmatic display advertising to ensure that your campaigns are always effective and up-to-date.
Let us get you started with your digital display advertising campaign today with managed and self-serve options. We offer fully managed campaigns with targeting that consist of geofencing, day parting, contextual, premium placements for display and video advertising. Our self-service allow budget flexibility and pay as you go digital advertising with location, IP and time targeting options for display and video campaigns.
We offer a flat fee solutions that allows you to stay on budget and be sure to win placements on quality apps and sites. For more informations please reach out to us today.