From billboards on your drive to work and ads in your social media feed, to TV commercials, how many advertisements do you think you see in a day? A 2010 study conducted by Walker-Smith, Yankelovich Consumer Research estimated that urban ad exposure is in the region of 5000 ads a day. With increasing bombardment of advertising comes increasing advert apathy. If your business is trying to get noticed in a competitive market it can be challenging to outperform your competitors. One way you can work your way to the front of the advertising pack is to use advanced technology such as Programmatic advertising. This process as it exists today has changed the face of online advertising. But what is programmatic advertising exactly and how can it make your advertising perform better? Today, we explain how programmatic advertising works and explore the key benefits.
What is Programmatic Advertising?
Programmatic advertising, also referred to as programmatic ad buying, is a fully automated process of buying and selling media space. We’re talking everything from online ads to digital out-of home (DOOH), streaming, video and TV. While traditional advertising (think Mad-Men style advertising) requires you to request proposals, get quotes and do a fair bit of negotiating, programmatic advertising is faster and more efficient because it is processed via digital technology interfaces. In other words, it cuts through the apathetic masses and targets those who are likely to be interested in your product or service. Programmatic advertising, therefore, benefits both businesses and consumers. It is in full swing across all digital platforms and devices and has been for some time now. It doesn’t cut the number of adverts an individual is exposed to, but it does tailor them to the individual’s needs.
How does Programmatic Advertising Work?
It works through the analysis of big data sets. You specify the type of consumer you want to reach, and then the algorithms decide the rest. You might specify your demographics based on age, gender, location, purchasing history, browsing history or interests. For example, you might target individuals who have visited your company or social media pages to entice them back again. Most programmatic advertising offers easy monitoring tools that will allow for tweaks and alterations to be made along the way.
How can your Business Benefit?
Programmatic Advertising is the future and it can benefit your business in multiple ways.
- It’s easy to get right if you know what you’re doing, meaning a higher return on investment. Ads can be optimised on key performance indicators such as Cost per click or Cost per action.
- It’s a highly efficient process. The use of technology to purchase ad space is sleeker, smoother and faster than traditional buying techniques.
- It’s cost effective because you lower the workload and associated costs of buying media space. Furthermore, the accuracy and precision is impressive meaning your ads won’t only cost less, they will return more.
- It’s personal and customers like personalised advertising. The digital delivery system allows messages to be sent to leads on real-time data.
- It’s scalable allowing you to reach larger target audiences in a timely and efficient manner.
If you’re looking for a marketing partner who understands programmatic advertising and how to put it to work for your business, get in touch with Balmer Agency today.