Programmatic advertising is when brands automate the buying and selling of ads in real-time using an automated bidding system. Programmatic media allows companies to buy impressions on sites or apps in an efficient and quick-response ecosystem.
To put it a different way, programmatic advertising lets companies set their media purchase for advertisements on auto-pilot using specialized software using real-time bidding processes.
In essence, using programmatic technology is the next step in marketing and advertising.
Using traditional advertising, brands need to purchase their media inventory manually. Networks would buy digital impressions ahead of time from a variety of sites and applications, repacking them then be sold on to marketers. In this old scenario there was no clear view of where the media had come from. Doing this required salespeople, proposals, and plenty of space for human error; it was inefficient, tricky, costly, and time-consuming for everyone involved.
The automated systems that drive programmatic advertising is faster, more efficient, and less expensive. Marketers and advertisers gain more detailed insights into advertising campaigns by purchasing individual impressions. By using strategic dashboards, marketers can manage their ad campaigns from any angle.
What are the Benefits of Programmatic Advertising?
Programmatic Advertising has several key benefits:
1. Improved Transparency and Control
Due to the very nature of the technology that allows programmatic advertising to be far more transparent than traditional advertising methods. Using the ecosystems provided, advertisers have the ability to track exactly what sort of reach their ads have – what sites they reach, the kinds of customers paying attention, and any real-time expenses linked to their advertising in real time. A direct advantage of this is that marketers and advertisers can optimize at any stage, tailoring their advertisements to best meet objectives on the fly.
2. Improved Efficiency
Digital advertising has improved efficiency of marketing campaigns already. The programmatic elements of new advertising systems lets advertisers measure and track each step of their campaigns. This allows them to optimize on the fly, thus improving efficiency.
3. Increased Targeting Capacity
Using the automation that programmatic advertising provides, advertisers can tailor their targeting parameters to meet their exact requirements. The flexibility of the new technology allows users to really reach their ideal customer base and target objectives. For example, by using IP Zoning, geolocation targeting, and contextual keyword programming. IP Zoning targets specific IP addresses, and is typically used to reach people for business activities or events. Geolocation targets area-specifics, through geolocation data like zip codes, states, or cities.
4. Real-time Reporting and Measurement
Every marketer is constantly chasing real-time data. Data provides the founding blocks for improving strategies and reach. Programmatic advertising allows advertisers to measure exactly how each element of their campaign is doing. This performance data lets advertisers see where improvements can be made, build on successful aspects of the campaign, and tweak targeting settings to get the most out of the campaigns.
5. Improved Audience Reach
Aside from improved audience targeting, programmatic advertising also offers the opportunity for the all-important retargeting. Statistics tell us that only 2% of consumers convert on their first visit to a website, retargeting allows marketers to continue to reach out to the remaining audience and encourage them to the website, improving the conversion rate.
How do you Successfully Implement Programmatic Advertising to improve Customer Engagement?
Programmatic advertising can be used to reach specific audiences, achieve clear target objectives, and regarget missed conversions. The key to using programmatic media to improve customer engagement and reach is to make sure that all parameters are optimized.
Customer engagement is vital to building customer loyalty. According to the Zendesk Customer Experience Trends Report 2020:
- 74% of customers feel loyal to a particular brand or company
- 52% of customers report going out of their way to buy from their favorite brands
Keeping these statistics in mind, driving customer engagement is vital for every brand, leading to improved conversion rates and a boost to sales. Using programmatic advertising, marketers can directly improve the conversion rates of their advertising campaigns, driving traffic with increasing success. The flexibility and data-driven insights gained from programmatic advertising allows brands to take their marketing to the next level, improving reach, transparency, and reporting.
Marketing technology has evolved over the years, developing better and better tools in a short duration. These improvements have given marketers and advertisers greater capacities to control and reach their target audiences, increasing customer engagement, and as a result directly improving the customer experience – after all, customers do not want to be shown advertisements that hold no interest for them. As technology continues to develop, marketers will have to take further responsibility for the data they collect and the consumers they reach. Technological advancement is going to be the key to the continual evolution of marketing, and programmatic advertising is an all-important element in this evolution. In short, programmatic advertising is, without a doubt, a large part of the future of marketing.
If you want to start taking advantage of programmatic advertising in your digital performance marketing strategies, get in touch today and let us help you reach the future!