Programmatic marketing is often neglected as a marketing strategy because it is not well-understood in the industry. However, with the right knowledge, it can become one of the most important tools in your company.
As per the graph, the spending on digital ads has been increasing daily over the years.
Programmatic remains the leading method for buying and selling digital ad space, with global programmatic ad-spend reaching 82% in 2022.
Even globally, these figures are anticipated to rise in the coming years. In 2022, the figures predict spending of 557.56 billion USD and by 2026, these figures will rise to 724.48 USD.
Now is the time to start your campaign and this article is the perfect starting point. We will answer all the basic questions, provide a real-life example and inform of the key advantages of programmatic marketing.
What is programmatic marketing?
With programmatic marketing, you can use automated bidding and placement platforms to buy and sell digital ad space in real time.
Steps of programmatic marketing:
● A page is selected.
● The owner of the page holds a bid-based auction to fill available advertising space.
● The marketers bidding for the spot are put through an auction on the marketplace.
● The advertiser who offers the highest price for the space is granted permission to run their adverts.
● The website contains the winning advertisement.
● Customers that see the advertisement click it to buy.
This process is fully automated and happens in milliseconds.
If you buy the right space, your company can target consumers across the full range of the internet. Programmatic marketing helps with this.
For instance, if the algorithm concludes that Facebook is the best location for the advertisement, the ad will be placed on Facebook. If the algorithm believes that directing the ad to a more specialized website with a high concentration of targeted people is the most efficient use of allocated funds, then that is where it will be placed.
How are these decisions made?
Because of the algorithm, you don’t have to sit and think about the perfect demographic and where you can find them.
The algorithm uses hyper-specific data which include:
● Target consumers’ age
● Location
● Career
● Specific consumer interests
So, you can launch hyper-targeted, extremely effective, ad campaigns to yield the best possible ROI.
How to create an effective programmatic marketing campaign?
To create an effective programmatic marketing campaign, you need to figure out the technical and cultural aspects of the company and the market.
You have to have a solid brand identity. Envision what you want your company to be in the future.
You also have to think about the target consumers. It is generally recommended that you start with a broad target audience and then revise the campaign continuously as more data becomes available.
You need programmatic advertising companies to come on board. They will help with continuous iterative optimization to deploy a programmatic marketing strategy that becomes better each time.
Testing as much as you can is the key.
Programmatic adversities companies can hold creative A/B testing and share campaign insights with creative teams including using DC.
A real-life example of programmatic marketing
You must know, The Economist, a digital and print publication.
The Economist wanted to get readers to check out the magazine, which covers everything from technology and economics to literature and the arts.
Using a programmatic marketing strategy, The Economist was able to develop many specialized audience cohorts that got hyper-personalized ads and tailor its ads to its various target groups.
The target was 650,000 new prospects from a £1.2m media budget.
Results of the campaign:
● 50% of the target was achieved in just nine days.
● A total of more than 60 different ad versions or unique personalities were developed, producing a 10:1 ROI and 650,000 new prospects.
● In total, The Economist got over 3.6m new people to take action, sample The Economist in context, and become re-targetable contacts.
Key benefits of programmatic marketing
1. Targets both B2C and B2B
Branding and programmatic marketing are no longer just for direct-to-consumer (B2C) advertising.
For B2B campaigns, programmatic marketing can be especially helpful.
In B2C campaigns you have to target a broad audience. In the B2B sector, the target audience is often much smaller and more specialized, making it ideal for programmatic marketing.
2. Optimized in real-time
In conventional marketing strategies, campaign analysis and optimization are done after they are finished. The learn-from-your-mistakes approach causes companies to lose valuable time and money
Ad campaigns for programmatic marketing are continuously updated and improved so it is becoming better with each passing minute.
3. You choose the frequency and time
While creating the bid, you can set the frequency and time. So, you can adjust your campaign such that you only bid for advertising spaces that meet your criteria.
For instance, if you know that the people you want to reach normally browse the Internet from 7 am – 10 am, you can bid for that time frame.
This is wonderful for your company because it helps you narrow down your target market even further. You can get in touch with them at the exact time of day when they’ll be online.
Additionally, it stops you from wasting cash. You won’t spend money on advertisements that your target market won’t see. This enables you to allocate your resources more effectively to reach your target market.
4. Pay what you can
You can choose the amount you wish to pay. You establish a maximum bid that you are ready to spend, just like with pay-per-click (PPC) advertising.
You just have to decide what the space is worth to you depending on how much return you are expecting it to generate.
This can help you better manage your overall advertising budget when you can determine the pricing. And you never have to go even a cent over the budget.
Also Read: Result-Oriented Amazon PPC Automation Software For Businesses
5. Pay only for relevant impressions
You only pay for relevant impressions when using programmatic advertising.
You are not launching a broad campaign in the hopes of connecting with some members of your target audience. With this approach, you can only receive relevant impressions.
By simply paying for relevant impressions, you can spend your money on attracting customers who are most likely to buy.
You can set up the minimum number of impressions you want to receive. By doing this, you can make sure that your campaign’s objectives are being met.
You spend money reaching people who are most likely to convert when you only pay for impressions that are relevant to your business. This makes it possible for you to increase the return on your investment (ROI) for your company.
Now that you know programmatic marketing can benefit your company, partner with programmatic advertising companies that can provide the best ROI. Professions of such companies can also help you with the development and execution of market strategies for Programmatic Ad campaigns, including developing roadmaps, test plans, and risk/benefit analysis.