Programmatic advertising has been a buzzword in the marketing industry for the past few years, but what exactly is this new trend? With so many terms associated with the trend, it can be difficult to understand exactly what it is.
Programmatic advertising can be generally defined as using an automated system to manage your media purchasing efforts to efficiently reach the right target audiences, at the right time, and in the right place. It encompasses many different facets, Real Time Bidding (RTB) is one well-known form of this new trend.
There are many advantages of using programmatic advertising techniques. In this article we will discuss a basic overview of the trend as well as the benefits it offers.
What It Can Do
Once you have determined your target market and created display advertisements to reach this group, then you can then begin using programmatic technology to set your strategy in motion. The first step is to input parameters surrounding a target audience’s age, gender, social standing, and geographic location. Next, you must determine factors such as which advertisements to use and how much you are willing to budget for, then the software will begin to go to work based on this data.
RTB is a form of programmatic advertising that many marketers are familiar with. RTB uses consumer data gathered on users to automatically buy ad space and present them with relevant information. One example of RTB is the automatic placement of native advertising that has relevant information to the user based on their demographics and interests. This process is fully automated with very minimal, if any, human input needed.
Why Use Programmatic Techniques?
There are many benefits associated with using programmatic advertising techniques to reach you target market. A few of these include:
With machine learning and AI, programmatic techniques can target audiences by picking up on trends and taking advantage of big data in ways that humans can’t. This form of automation does away with the older method of casting a wide net of advertisements and then homing in on what works and what doesn’t. Instead, programmatic technology starts small and focuses on what ads are working right out of the gate.
Agreed upon prices allow for more flexibility because advertisers can sign up for minimum impressions or a minimum budget. Cost-efficiency in digital marketing is all about knowing what leads are good leads and how to convert users into these leads and then sales. Marketers that have a good idea of what leads are converting into sales can adjust programmatic methods, and then let the algorithms reach out to these leads. In this way, using AI to place advertisements based on a set budget allows for optimal placement and therefore maximum ROI.
Less Human Input:
Programmatic technology is beneficial in this area because it eliminates human error and provides optimal allocation of time. When programmatic advertising techniques are utilized, human input is no longer needed for things such as sending insertion orders or dealing with ad tags. This allows for more time to focus on strategy and other aspects of marketing.
New marketing strategies are constantly changing the game when it comes to reaching the right audience at the right time. If you feel that your business could benefit from new and exciting ways to strengthen your brand and target potential customers, contact Linda Fanaras, President/Strategist of Millennium Agency www.mill.agency.