In today’s fast-paced world, it’s hard to imagine online advertising without programmatic marketing. This technology came into the picture and revolutionized how paid ads are managed, making the entire process more effective in real time.
Programmatic marketing has been around for over 15 years and shows no signs of slowing down. This technology is peculiar because it evolves with changing times. Marketers constantly find new ways to tweak the technology to engage better with customers and expand their clientele.
However, programmatic marketing is more profound than you think. Even if you have all the tools and resources, you can only get your desired results with adequate knowledge. This article will shed light on the meaning and importance of programmatic marketing and how to create a strategy like a pro.
What is Programmatic Marketing?
Here’s the simplest programmatic marketing definition: it is the process of automatically buying and selling digital advertising space. It uses automated technology and algorithmic tools for media buying.
Instead of spending long hours negotiating with sales reps and running trial digital advertising campaigns, marketers can focus on targeting the right audience and improving ads. You can use AI and algorithms to buy and run digital ads while you concentrate on optimizing those ads to get the best results.
The Digital Marketing Institute also clearly defines programmatic marketing- using software to buy digital advertising. If you look at this definition, you’ll easily assume that programmatic marketing doesn’t involve human intervention. It involves, to an extent, but algorithms control most of the process.
Before programmatic marketing, advertisers had to reach out to publishers, manually negotiate the value of the ad inventory and hustle for ad spaces before purchasing. Now, the entire process has become very efficient and cost-effective. Marketers can use suitable programmatic advertising platforms to reach their target audience within their budget.
Programmatic marketers always use ad exchanges to buy and sell, although we know that some ad exchanges are private.
These exchanges ensure that publishers, agencies, and advertisers can collaborate to buy and sell ad impressions in an automated process. The entire process happens in real-time, which leads to higher profits for all parties involved.
Benefits of Programmatic Marketing
According to this Statista report, programmatic ads will account for over 86% of digital advertising revenue by 2026. Why should all digital marketers take advantage of this technology?
1. Excellent targeting
Programmatic advertising has excellent targeting capacities. Previously, traditional media buying limited advertising reach because it was expensive and time-consuming. Plus, you wouldn’t know where you’re going wrong because the results won’t appear for weeks. By then, you have already lost valuable resources in the campaign.
Programmatic advertising allows every brand or agency to target the audience they want by buying ad space, regardless of size or operational years. Even the smallest companies can target an international audience using programmatic marketing because advertising costs have decreased.
Programmatic marketing can also help you target a local audience using geodata if you have a brick-and-mortar store.
2. Eliminates time wastage
Time wastage elimination is the most significant advantage programmatic advertising has over traditional media buying. In times past, advertisers had to buy ad spaces manually, broker the price, negotiate the ad placement, and schedule marketing campaigns.
By the time you complete the entire process, you have wasted weeks on a campaign that will fall below standard.
Programmatic advertising changes all of that because it delivers results in real time. It uses machine learning and artificial intelligence to find the best ad inventory for advertisers and place ads in strategic positions that align with the marketing campaign’s overall objectives.
Plus, you get the results in less than no time, so you know what to optimize and tweak for the next one.
Speaking of results
3. Easy Performance Assessment
You can quickly assess and monitor performance metrics in programmatic marketing compared to traditional media buying. When demand-side platforms (DSPs) run the programmatic campaign, it gathers all the relevant data and gives you detailed insights in real time so you can tweak it immediately.
What are some standard metrics that DSPs show?
- Return on Ad Spend (ROAS): Revenue gained for every dollar spent on adverts. This metric helps advertisers determine the effectiveness of our marketing campaigns.
- Product Detail Page Traffic: number of views certain product detail pages have.
- New-To-Brand Purchases (NTB): If someone hasn’t bought any product in the last 365 days or ever but makes a brand new purchase, it’s classified under new-to-brand purchases.
4. Simultaneous Ad Placements
In programmatic advertising, you can run advertisements on several platforms. Machine learning and Artificial Intelligence (AI) allow advertisers to run adverts simultaneously across different digital channels. For instance, you can create programmatic ads across the web, in-apps, and display systems.
Doing this can help you determine which channel suits your target audience best. For example, running social media and mobile ads may be great if your target audience is predominantly Gen Z. Also, running ads on TV may be a good strategy for millennials.
5. Saved Resources
Programmatic marketing is cost-effective because it goes with what works. Most people think programmatic marketing only involves buying ad spaces. That’s just one slice of the pie. Programmatic marketing ensures you show your ads to interested people at the right time.
Traditional media buying thrives on speculation. You could only place ads that you thought would yield the right results, and in most cases, the highly coveted or sought-after ad spaces were super competitive.
That’s no longer the case. Programmatic advertising will never show your ads to disinterested people. It aligns user data and campaign variables to provide suitable online ads that resonate with your target audience, so you won’t have to waste money through speculation.
Now that you know why programmatic marketing is powerful, how can you incorporate it to generate business revenue?
Let’s find out.
How to Create An Effective Programmatic Marketing Strategy
1. Set your Goals and Choose the Right Programmatic platform
Planning is the first step to success. It helps you to know whether you’re reaching your overall goals or derailing them.
The first thing to do is to set goals based on what you (or your clients) want. For instance, do you want to explore more markets and expand your customer base? Do you want to increase business revenue?
These two goals can be intertwined, but it’s essential to outline your goals so that you can select the right programmatic platform to run your ads and use your ad budget wisely. You should constantly optimize your ads to achieve these goals if you want better results.
Another strategy is to have the primary KPI. This doesn’t mean that you wouldn’t observe other KPIs, but it will help you measure your progress and determine what bidding model works best for you.
2. Audience Segmentation
Programmatic marketing is highly customized, so it thrives on audience segmentation and targeting. This is why you must be very careful when creating ads.
The ads that will work for millennials seeking passive income to cater to their families may not necessarily appeal to Gen Zers who are still in school and can afford to take financial risks. You must understand your audience to craft messages that directly speak to them.
How does audience segmentation work? The first stage is to understand your customer journey. What are their preferences and purchase history? What triggers them to buy your products?
All these can help you to segment your audience and send relevant messages that meet their pressing needs.
3. Utilize Data
Data is the bedrock of any powerful marketing campaign. When you have segmented your audience, you need data to curate the right ad content.
The initial stage of your campaign should be for awareness to reach many people. One of the many mistakes beginner marketers make is that they target everyone at the initial stage to see who the shoe fits. That’s a waste of time and resources.
Even if you’re targeting a wide range, you still need third-party data to help you narrow your audience based on the kinds of content they consume the most, the websites they visit, the type of content they consume, the apps they have on their phones, and so on.
4. Devise a Campaign Plan
While you may believe that AI and machine learning fully control and regulate programmatic marketing campaigns, that doesn’t mean you will sit back and do nothing. You need to give it directives, which can only come from a well-thought-out plan.
Before launching any campaign, you must predict and plan the campaign to see if it can grow or scale. You can predict the success of the campaign with certain variables like location, audience, ad inventory, and marketing objectives.
Predicting the path and results of your campaign will help you understand how to tweak specific metrics so that you can allocate your budget appropriately.
5. Monitor your Campaign Closely
It’s almost impossible to get it right the first time. Even if you’ve run many marketing campaigns prior, there is always something new to tweak or change. Ensure that you monitor and optimize your campaigns to improve their effectiveness, such as focusing on audience segments responding or pausing domains.
Create Your Next Programmatic Marketing Campaign with FrescoData
You don’t have to go through this journey alone. Rather than battling to create campaigns that yield results, why don’t you hire a professional programmatic marketing agency to do the job for you?
FrescoData is an excellent digital marketing company that specializes in programmatic marketing.
We are equipped and trained to run various programmatic ads across devices while ensuring that content and context don’t jeopardize your brand safety. We utilize several strategies, such as device ID targeting, PPC, search engine marketing, local SEO, and IP targeting, to increase conversion rates and generate more revenue for our clients. Contact us today.