The digital advertising spend has been on the rise for years and the technology / logics used behind digital advertising is also evolving rapidly.
In recent years, marketers have begun to use programmatic advertising more and more to reach their target audience. Programmatic advertising allows advertisers to target users based on their behavior and interests, rather than relying on cookies or other traditional methods of targeting. As a result, programmatic advertising has become one of the most effective ways to reach potential customers online.
What is Programmatic Advertising?
Programmatic advertising is a type of digital marketing where advertisers create ads based on users’ browsing history and other information about them that is collected by third-party data providers (or “data exchanges”). This enables advertisers to target people likely to be interested in their products or services with highly specific ads relevant and meaningful for each user.
How is Programmatic Different From Other Digital Marketing Methods?
Programmatic advertising is different from other digital marketing methods in several ways.
- The first thing that sets programmatic apart is its ability to target specific customers with highly relevant ads. For example, instead of just showing an ad during an episode of The Big Bang Theory, an advertiser could use programming to target those who are watching the show.
- Another way programmatic advertising differs from other methods is that it can be automated and scaled to meet an advertiser’s needs. This means that advertisers do not need to rely on human beings or third parties for execution on their campaigns.
- Finally, programmatic advertising allows for tracking effectiveness better than traditional marketing methods do because it is done through digital channels like email and social media posts instead of print publications or television commercials.
Advertisers love programmatic advertising because it’s better for them: they get more ROI on the investment, and they can get impressions in front of the relevant target audience. When you use programmatic advertising, you don’t have to worry about what size of ad will work best on websites; all you must do is give an algorithm some data about where your audience lives and how much they like certain products or services.
It’s also better for publishers: they don’t have to worry about figuring out how many unique visitors they get per day or what type of content will draw in the most traffic from search engines; instead, all they need to do is create great content and let advertisers come along and buy it based on how much money they are willing to spend per impression.
While programmatic advertising has proven effective at driving consumer engagement, it hasn’t been so great regarding brand perception. This is largely because there are many misconceptions about how exactly this type of advertising works, including:
- Programmatic ads don’t work
- They’re creepy or invasive
- They’re only used by big brands trying to sell something
The good news? All three assumptions couldn’t be farther from the truth! In fact, there are plenty of reasons why brands should consider using programmatic ads.
Programmatic ads are an extremely effective way to reach your target audience. They offer many advantages over traditional advertising, including:
- Accurate Targeting: Because they use data to locate specific users, programmatic ads can be targeted very accurately. This means that you can reach the exact people who are most likely to be interested in what you have to offer.
- Detailed Reporting: Programmatic ads make it easy for you to see exactly how much money each ad has generated so far, as well as how many impressions it has received. This allows you to track the effectiveness of each campaign and make any necessary adjustments before things get too expensive or ineffective.
- Compatible With Other Platforms: Programmatic ads are compatible with most digital platforms, including Facebook, Twitter, Instagram, and YouTube! This makes it easy for companies with smaller budgets but still want maximum exposure for their products/services; instead of spending hundreds or thousands on ads that might not even get seen by anyone interested in what they have available.
Despite the myths, marketers are upbeat about their spending on programmatic advertising and believe it will play an integral role in maximizing their marketing efforts. Its technology proves to be a dynamic way to support business growth and, with proper changes and plans in place, brands have found success by using it as part of their marketing strategy. Programmatic advertising is being used by technology companies to quickly buy and place ads. Even leading search and display advertising companies such as Google and Facebook are using programmatic advertising for themselves. Even though programmatic advertising is still in its early days, it has made a promising path for the future.
