6 Advantages of Using Programmatic Advertising in Marketing
Recently, marketers have begun to increase their focus on programmatic advertising. This focus is a natural result of the growth of digital marketing as the primary means of connecting with customers.
In the future, the demand for programmatic advertising is only going to increase. It’s proven to be one of the most powerful digital tools available to marketers today. Global programmatic ad spend exceeds $129B.
Programmatic advertising is popular for a reason. In the paragraphs below, we’ll define programmatic advertising and explore the benefits of using this method as part of your company’s marketing strategy.
What Is Programmatic Advertising?
Programmatic advertising is an automated process in which online advertising is bought and sold. This process involves two parties, the advertiser who has a product or service they want to market and the publisher who owns the website or platform where ads may be displayed.
However, instead of the advertisers and platform owners engaging with one another about pricing and ad placement, all of that interface is handled automatically.
6 Key Benefits of Programmatic Advertising
Marketing teams that embrace programmatic advertising will experience these six benefits:
1. Marketers Can Expand Their Reach Significantly
There are more than 240 million active websites. If only 10% of those offer advertising space, that’s 24 million sites reaching a diverse, global audience.
Now, consider that 62% of online ad spend is programmatic. It’s clear that this advertising method empowers marketers to reach audiences they never could with a manual approach to advertising.
2. Better Data Leads to Increased Efficiency
After an initial setup process, programmatic advertising is fully automatic. The right advertising creatives are placed on the right websites and platforms at the right times.
This deployment is based on data and requires no manual intervention, which leaves marketers with more time to dedicate to campaign optimization and creating more engaging ads.
3. Programmatic Advertising Is Highly Scalable
Programmatic advertising can be made to fit any campaign at any budget. Businesses can set monetary limits to ensure that their campaigns never exceed the planned budget the marketing team has established. Later, as campaigns earn good ROI and companies grow, those advertising spending limits can be increased.
4. Improved Targeting Increases ROI
When marketers use programmatic advertising they can use several forms of targeting. Additionally, that targeting has nearly pinpoint accuracy. Targeting types include:
Geotargeting customers with advertisements based on where they are located. It is ideal for local advertisers, event marketing, and other advertising that is most effective when the target audience is within a particular region.
Behavioral ads automatically show audience members advertisements based on their online behavior. For example, viewing shoes on one website could trigger an ad for shoes on a site that displays programmatic ads.
There is no limit to the devices that can be used to reach customers with programmatic advertising. In addition to ads run on websites, advertisers can also reach audiences through various connected TV platforms.
Contextual advertising is becoming more popular, especially as cookies are set to be eliminated in the near future. Rather than tracking consumer behavior to display ads, contextual advertising simply serves up ads that are relevant to the website or platform. For example, a travel website might advertise luggage.
5. Programmatic Campaigns Provide Transparency
Some marketers may worry that the automation of advertising will lead to a lack of control or that it will obscure the process. That’s simply untrue.
Instead, advertisers have full insight into which websites are displaying their ads. They can use this information to ensure that their advertising messages are reaching a viable audience.
6. Marketing Teams Can Access Real-Time Data
Programmatic advertising works so well because it uses data in real-time to determine ad placement and helps to ensure that marketers get their content in front of the right people. However, that information isn’t just available to the software that buys and places those digital ads. Marketing teams also have access to this data.
This access means they can make data-supported campaign decisions. Even better, they can quickly take action to adjust campaigns on the fly and improve their chances of achieving the best outcomes.
Is Programmatic Advertising Right for You?
One of the more notable things about advances in digital marketing is the increasing influence of data. Marketers are realizing that data-driven campaigns create a real advantage when it comes to reaching the right audience.
Programmatic advertising doesn’t just use data to improve targeting; it also integrates automation. This integration leaves marketing teams with additional time and resources to spend on strategy and creative development.