If you do any sort of marketing online, it’s unlikely that you haven’t heard of programmatic ads. But, maybe you’ve done some research on it and you’re still asking yourself, ‘what is programmatic advertising?
While all the jargon surrounding programmatic ads might seem intimidating, they’re really not that complicated. In a nutshell, they’re a form of advertising that uses software to automate the process of buying and selling ads.
They’re slowly taking over the world of online advertising, and that’s because of all the advantages they provide. If this sounds intriguing to you, then keep scrolling, because we’ve broken down the benefits for you below.
5 Reasons Why You Need Programmatic Advertising
1. Enhanced Targeting Strategies
Programmatic’s ability to target the right audience is unmatched by other forms of advertising. The software for buying programmatic ads uses vast amounts of data to eliminate all the guess work involved in traditional ad campaigns.
You can target any number of different demographics, choose what time(s) of day you want your ads to be seen, and get as specific as you want, targeting users based on their interests, browsing behaviour, location, and what websites and apps they frequent.
Here are some of the targeting strategies you can use when creating programmatic campaigns:
– App/Website Targeting: Choose specific website and/or app users to target.
– Audience Targeting: Target people based on things like age, gender, education, income and interests.
– Contextual Targeting: Target people based on what kind of content they’re browsing.
– Geo-targeting: Serve ads to potential customers according to their location.
– Retargeting: Re-engage users who’ve already visited your website or made a purchase there.
Looking to only target women over the age of 50 who are interested in gardening, close to your business and have visited your website before? With programmatic ads, you can afford to be that specific.
Your ads can also follow users wherever they go, so long as they’re using the same logins on all their devices.
2. Better Return on Investment
The reduced waste and robust targeting associated with programmatic ads allow you to create a more effective campaign with a smaller budget. More specific targeting capabilities translate to fewer wasted clicks and impressions because less money is being spent on putting ads in front of people who won’t even give them a second glance.
And compared to traditional means of buying ad space, such as negotiating directly with publishers, programmatic is considerably cheaper. This is because these ads are what we call ‘remnant inventory’, meaning publishers are struggling to sell the ads directly. Basically, they’re holding a ton of ad space that nobody’s buying, so they put it up for auction, and typically, prices are much lower as a result.
A survey by AdRoll asked 350 marketers in Australia, New Zealand and Singapore what they think about programmatic ads. More than 80 per cent of respondents said that programmatic advertising provides a better return on investment than traditional forms of media buying. In addition to this, over 30 per cent of them said that more than half of their budget is being used for programmatic initiatives.
3. Advanced Tracking Capabilities
The ability to track those who’ve been served your ads is another benefit that programmatic provides. These tracking capabilities allow you to look at not only the total number of conversions, but also the category and value of each individual conversion you’ve gained from those who’ve viewed or clicked on your ads.
Before programmatic ads, this kind of data was something advertisers could only dream of having. But it goes much deeper than this, and some of the data that’s available, while invaluable for marketers, is becoming downright disturbing.
For instance, if someone was served your ad a month ago, and then went to your site today and bought something, you can track that. Not only that, but you can look at exactly what that user did when they went to your site. Did they watch your landing page video right to the end? Did they have their volume on when they were watching it? It’s all trackable, assuming users don’t delete their cookies.
And although this isn’t being widely used at the moment, with Google Maps, it’s even possible to know if someone was served your ad and then ended up going to your business’ physical location. Are you getting creeped out yet?
Because software is doing the bulk of the work when it comes to buying and selling programmatic ads, this frees up more time for marketers and business owners. Instead of spending countless hours doing things like negotiating with publishers and filling out forms to buy ad space manually, those hours can be spent poring over the data, strategizing and creating more effective ad campaigns based on highly detailed, accurate information.
This automation also helps advertisers to avoid human error, as software can survey more data than a human being could ever hope to consume. This allows the program to make the absolute best decisions on how to put your ads in front of the right audience.
You can set the parameters for what audience(s) you’re looking to target, when you want your ads to be displayed, and a host of other factors, and let the software do the heavy lifting. This allows you to basically put your ad campaign on autopilot, sit back and observe the analytics.
And you can always optimize your campaign on the fly once you’ve had time to digest the data and determine what’s working and what isn’t. You can make these changes in real-time, without any down time or the need to renegotiate an entire campaign every time you want to modify something.
5. The Wave of The Future
In the few short years that programmatic ads have been around, they’ve completely changed how advertising is bought and sold online. The trend toward automation has hit the marketing world, and arguably, one day, the majority of online ads will be bought and sold programmatically.
Let’s just take a look at some recent statistics:
According to eMarketer:
– In 2017, spending on programmatic display ads reached $33 billion, and is forecast to increase to $46 billion in 2019.
– Almost 8 out of every 10 mobile display ads in the U.S. are purchased programmatically, and this is set to increase to about 85 per cent in 2019.
– By 2020, nearly 90 per cent of mobile display ads will be bought programmatically.
According to AdRoll:
– A survey of 350 marketers found that programmatic advertising was number two on the list of their most successful marketing channels for attracting new customers, second only to organic social media.
– 77 per cent of Australian marketers, 49 per cent of New Zealander marketers, and 61 per cent of Singaporean marketers expected their programmatic budget to increase in 2017.
Are you still asking yourself, ‘what is programmatic advertising?’ If you’re intrigued, but still not quite sure what to make of all this, contact The Best Media for a free demo and let our experts put everything in plain English and explain why you need programmatic advertising.