How Programmatic Advertising Helps in Getting ROI-Driven Digital Marketing Solutions to Maximize Brand Reach and Engagement?

Intro

In 2021, "global programmatic ad spend" reached an estimated 418.38 billion U.S. dollars. And the figure is expected to reach 724.84 billion USD by 2026.

You can take a look at the projection below:

(Data source: Statista)

So, it is evident that digital marketers are heavily leaning toward programmatic advertising. And why would that be? Well, higher ROI, wider brand reach, and more engagement would have driven this shift.

• But what is programmatic advertising?
• How does it work?
• In what ways does programmatic advertising help get ROI-driven digital marketing solutions?
• And most importantly, how can you get started with programmatic advertising?

Find answers to all these questions below.

What is programmatic advertising?

Programmatic advertising is a method of buying and selling digital advertising. It is a process carried out using software and algorithms. It allows advertisers to reach their target audience more effectively and efficiently.

How?

Marketers can bid on ad inventory in real time and only pay for ads that are actually served to users.

There are several types of programmatic advertising, including

Real-time bidding (RTB)

This is the most common form of programmatic advertising. In RTB, advertisers bid on ad inventory in real time as users visit websites and apps.

Private marketplaces

These are invitation-only auctions for ad inventory, in which a select group of buyers can bid on ad space.

Programmatic direct

It includes using programmatic technology to buy ad inventory from publishers. This eliminates the need for an ad exchange.

Programmatic audio and out-of-home advertising

Programmatic techniques are not limited to the digital space. They are also used to buy advertising space on audio platforms like Spotify. And out-of-home settings such as billboards and public transit.

All-in-all, programmatic advertising allows for greater personalization of the advertising experience. This is the key reason why it is gaining ground.

It allows targeting specific audiences based on various factors, such as:

• Demographics,
• Interests, and
• Browsing history.

It also allows for more precise measurement and optimization of campaigns. Data is collected on the performance of each ad and can be used to improve its effectiveness.

However, programmatic advertising has also raised concerns.

These concerns are about data privacy and the potential for ad fraud.

Thus, advertisers and publishers must ensure that they are complying with regulations. (Such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA).)

Also, you should work with reputable programmatic advertising companies to prevent ad fraud.

How Does Programmatic Advertising Work?

The process of programmatic advertising is explained in brief below:

Step 1: Advertisers create an ad campaign. Target audience, budget, and desired placements are defined.

Step 2: The campaign is then integrated into an ad exchange.

An ad exchange is a platform that allows advertisers to bid on ad inventory. (Inventory here means available ad space on websites and apps.)

This is done in real-time.

Step 3: When a user visits a website or app that is part of the ad exchange, the exchange sends out a request for bids from advertisers whose campaigns are targeting the user.

Step 4: The advertisers' algorithms assess the value of the ad inventory and decide whether to place a bid. If the bid is accepted, the ad is served to the user.

Step 5: The ad exchange tracks the performance of the ads and provides data and insights to the advertiser. This can be used to optimize the campaign and improve its performance.

How Programmatic Advertising Yields ROI-Driven Solutions That Maximize Reach and Engagement?

It is easy to understand how programmatic advertising reduces manual effort and analysis. But how does it drive better reach and engagement?

Here are 7 ways it happens:

1. Improved efficiency

Programmatic advertising allows advertisers to automate the process of buying and placing ads. This saves time and effort, thus driving up the return on investment.

2. Targeted ad placement

Programmatic advertising allows advertisers to target specific audiences with greater precision.

3. Real-time optimization

With programmatic advertising, advertisers can make changes to their campaigns in real-time. This allows for optimizing the campaigns for maximum effectiveness.

4. Cost-effectiveness

Programmatic advertising is more cost-effective than traditional methods of advertising. This is because it allows advertisers to target specific audiences with more precision. Thus, it allows them to make changes to their campaigns on the fly based on data and performance.

5. Measurable results

Programmatic advertising provides detailed data and analytics about the performance of campaigns. Advertisers can use this data to measure the effectiveness of their ads. And also make data-driven decisions in the future.

6. Better access to inventory

Programmatic advertising allows advertisers to access a wide range of ad inventory. This also includes inventory that may not have been available through traditional methods.

7. Personalization

Programmatic advertising allows advertisers to personalize ads for individual users. Thus increasing the relevance and effectiveness of the ads.

With that, now you know what programmatic advertising is, its types, how it works, and its benefits. The obvious next step is to leverage it for your business.

And you can do that by using the below-mentioned tools and platforms. And don’t forget to follow the best practices for the best results.

Read on.

Programmatic Advertising Tools and Platforms for Getting Started

Here are some popular programmatic advertising tools and platforms

• Google Ads

Google's advertising platform allows advertisers to reach users through search, display, video, and mobile ads.

(Source)

• DoubleClick

Now branded as Google Marketing Platform, It is a suite of digital marketing tools from Google.

(Source)

It includes a demand-side platform (DSP) for buying ad inventory programmatically.

• The Trade Desk

(Source)

It is a DSP that allows advertisers to buy ad inventory programmatically. It covers several channels, including display, video, audio, and social media. what is dsp

• Xandr

(Source)

Formerly known as AppNexus, it is a programmatic advertising platform that includes a DSP and supply-side platform (SSP) for buying and selling ad inventory.

• LiveRamp

Source

It is a data onboarding platform. And it helps advertisers connect their data to various programmatic advertising platforms. And thus, reach the right audience.

Programmatic advertising best practices for the best results

Here are some expert-recommended best practices for programmatic advertising:

1. Define your target audience

Clearly identify who you want to reach with your ads and use data and insights to fine-tune your targeting.

2. Use high-quality creatives

Invest in well-designed and engaging ad creatives to increase the chances of your ads being clicked on and remembered by your audience.

3. Test and optimize

Use data and analytics to test different versions of your ads and optimize them for the best performance.

4. Set clear goals and metrics

Determine what you want to achieve with your programmatic advertising campaign and use metrics such as click-through rate and conversion rate to measure your success.

5. Use a reputable programmatic advertising platform

Choose a programmatic advertising platform that is transparent, reliable, and has a good track record of preventing ad fraud.

6. Stay up to date with industry trends

Keep an eye on industry trends and changes in programmatic advertising to ensure that you are using the most effective strategies and tactics.

7. Protect user data

Make sure to comply with data privacy regulations and be transparent about how you are using user data.

8. Work with experts

If you are new to the world of programmatic advertising, consider working with an experienced programmatic advertising agency. Such an agency will help you plan, implement and succeed with programmatic advertising with ease.

Now you are armed with all the information you need to get started with programmatic advertising. Don’t wait anymore. Reap higher ROI, better brand reach, and more engagement today.