Programmatic advertising is a term you have heard more and more lately. But what is it? Simply put, Programmatic Advertising uses automation to buy and sell digital ads. It allows for real-time bidding on ad inventory and helps to improve the efficiency of the ad buying process.
5 Benefits of Programmatic Advertising
Here are the top five benefits of using Programmatic Advertising.
1. Improved Targeting
Programmatic Advertising allows you to target your audience more accurately than traditional methods. Most of the time, the targeting process leverages cookies and data collected from users’ online activity. This tactic ensures that your ad reaches the right people with the right message at the right time.
2. Increased Efficiency
Programmatic Advertising also allows you to automate the entire process of buying and selling ads. This means you can save time and money that would otherwise be spent on manual tasks. Most importantly, it helps improve your ad campaigns’ overall efficiency.
3. Improved ROI
Since Programmatic Advertising allows you to target your audience more accurately, you will likely see an improved return on investment (ROI). Studies have shown that serving ads programmatically can lead to a 30% increase in ROI.
4. Better Quality
Programmatic Advertising also allows you to improve the quality of your ad campaigns. With the help of advanced data and analytics, you can track the performance of your ads in real time and make necessary changes to improve their effectiveness.
5. Greater Control
Programmatic Advertising gives you greater control over your ad campaigns. You can choose where your ads will be placed, how often they will be shown, and what audience you want to target. This allows you to create highly customized campaigns that will likely succeed.
How Does Programmatic Advertising Work?
Now that you know the benefits of Programmatic Advertising, you might wonder how it works. The process can be divided into four main steps:
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Data Collection
The first step is to collect data about potential customers. This data is then used to create profiles of target audiences. When creating these profiles, marketers consider age, gender, location, interests, and online activity.
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Audience Segmentation
The next step is to segment the collected data into different groups. This helps marketers create more targeted ad campaigns. For example, a marketer might create one ad campaign for women aged 18-24 and another for men aged 25-34.
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Ad Auction
The third step is to auction off ad space to the highest bidder. This is done in real-time and allows marketers to compete for ad inventory.
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Ad Delivery
The final step is delivering the ads to the chosen audience–typically done through Display or Video. Check out our Programmatic Video or Programmatic Advertising guide for more information.
5 Tips to Succeed in Programmatic Advertising
To thrive in Programmatic Advertising, there are a few key considerations to remember.
- Have a clear understanding of what Programmatic Advertising is and how it works.
- Gain insight into the different types of Programmatic Ad buying.
- Have a good understanding of your target audience and what kind of message they will respond to.
- Understand how to track, measure, and analyze your ad campaigns in real-time.
- The willingness to experiment and test different approaches.
How Much Does Programmatic Advertising Cost?
The cost of Programmatic Advertising varies depending on several factors, such as the type of ad, the target audience, and the bidding strategy. Generally speaking, Programmatic Ads tend to be more expensive than traditional ads. However, they are also more effective and offer a better return on investment (ROI).
Ready to Get Started?
Are you thinking of using Programmatic Advertising for your business? Explore our Programmatic Advertising services, and let’s work together! At AdCellerant, we have a team of experts who can help you get the most out of your digital ad campaigns. Contact us today to learn more.
*This article was updated on July 7, 2023.
