With more than 88 percent of digital display marketing spend consumed by programmatic advertising, in 2021, it is no exaggeration to say that this novel advertising paradigm will define the future of online advertising. Some of the most well-known brands such as Audi, The Economist, Google, Kellogg’s, AirAsia, IHG Hotel Group and Turner Sports use programmatic advertising to boost their brand awareness, optimize their customer touchpoints, generate more leads, drive conversions and increase their revenue. In this blog, we’ll discover why programmatic advertising is wildly successful and how you can make your business grow rapidly using this advertising method. But first, let’s find out what programmatic advertising exactly is.
What Is Programmatic Advertising?
Programmatic advertising is an advertising method that relies on Artificial Intelligence (AI) driven automation technologies for buying advertising space. Compared to traditional methods of digital advertising, programmatic advertising minimizes human intervention and uses sophisticated algorithms to serve the right ads to the right audience at the right time., at the right price.
This innovative digital advertising method empowers both Small and Medium Enterprises (SMEs) and large enterprises to obtain excellent results. So, if you’re planning to purchase online digital ad space, programmatic advertising should be your go-to strategy irrespective of your organization’s size.
Wondering if this is your cup of tea? Let’s take a look at some interesting facts.
60% of media planners have programmatic advertising as one of their top three ad spends for the year.
Programmatic advertising is anticipated to hit a whopping $79.61 billion by the end of 2022 and is pegged to grow at 25.8 percent.
Programmatic advertising makes up over 72 percent of digital displays.
As you can see, programmatic advertising is a highly efficient way of purchasing digital ads and helps you reach more customers, drive your conversions and make your business more profitable.
Why Is Programmatic Advertising So Effective?
Programmatic advertising leverages solid data to serve ads; marketers no longer have to rely only on their intuition when they use this AI-enabled method. You are backed up by a robust algorithm that will help you discover the best forum to place your ads. All you need to do is share your campaign, KPIs and audience information with your programmatic advertising tool, and its algorithm will take care of the rest. Right from launching the campaign to monitoring your ad spend, the programmatic advertising tool will enlighten you on areas of improvement.
How Can You Succeed with Programmatic Advertising?
1. Set Your Programmatic Advertising Goals
As a matter of fact, for anything in the business world, setting goals before executing your plan is of utmost importance; programmatic advertising is no different. Determine the type of advertising your business requires and design an effective strategy around it to define your long-term and short-term marketing goals to ensure that you’re in sync with your organization’s goals.
2. Don’t Forget the Human Touch
Just because programmatic advertising uses Machine Learning (ML) and AI, it doesn’t mean the role of human beings is completely eliminated. Some platforms offer a full range of automated services, while others let you run your programmatic ad buying by yourself in varying degrees.
Once you've decided which platform you want to go ahead with, allocate talented marketers for planning, controlling, optimizing and monitoring your ad buying activities. Next, find the perfect balance between intelligent human intervention and automation. This will ensure you don’t have to rely solely on the algorithm for your campaign success.
3. Watch Out for the Programmatic Ad Fraud and Privacy Concerns
While programmatic ads are typically viewable between the range of 44 percent to 55 percent, eMarketer has estimated digital ad fraud causes marketers a loss of 6.5 billion USD to 19 billion USD annually. Consumer privacy is another issue that advertisers need to deal with.
So how can you as a marketer deal with fraud? Initially, you need to look at your potential campaign reach and match it to your budget. When marketers use programmatic advertising, they’re prone to focus heavily on the reach of the ads, and this can make their campaigns vulnerable to bot abuse. So, the strategy lies in coupling reach with real traffic quality and going in for the bidding space.
Next, make sure that all your ads are compliant with privacy regulations. Most apps and sites do not have well-defined policies to ensure privacy, and you can be in trouble if the ads violate the privacy of viewers.
Programmatic advertising helps you resonate with your audience, optimize your ad spend and boost your ROI in a big way, thereby enabling you to achieve your marketing goals. At SunYello, we help you make the most out of this cutting-edge advertising paradigm. Our solid expertise of programmatic advertising techniques coupled with a strong emphasis on understanding your unique requirements enables us to design the right solution that produces the desired results at the lowest cost. Hope you liked this post. How do you plan to use programmatic advertising? We’d love to know.
