As digital marketing evolves, more and more business owners are curious about what programmatic ads can do for their companies. On the flip side, many marketers have been using the programmatic method to deliver ads to audiences on sites like Facebook and Google since it first came out.
Recent developments have made this approach more efficient than ever before, so it’s worth looking at whether or not programmatic advertising can be the future of your business’s ad strategy.
According to Statista, in 2020, global programmatic ads were estimated to reach about $130 billion, with future spending to surpass $150 billion by 2022. This post will give you an overview of programmatic advertising, how it can benefit your business, and why it may be the future of marketing.
What Is Programmatic Marketing?
Programmatic advertising is a technology-driven approach to buying digital media where real-time bidding takes place between ad exchanges, ad networks, and other demand sources (such as data management platforms) to serve targeted display ads.
Essentially, it automates what was once done manually through email correspondence with individual advertisers. As a result, this relatively new form of online advertising is quickly growing in popularity among business owners frustrated with traditional ad platforms and methods.
Because many small businesses rely heavily on word-of-mouth promotion, there’s not much room in their budgets for ads or promotions—especially not when they already have a full plate managing their core operations and growing their client base. But that doesn’t mean business owners can afford to ignore digital marketing completely.
After all, how else will people know about your product or service if you don’t tell them about it? That’s where programmatic advertising comes into play. It allows you to reach more potential customers with targeted messaging that is more cost-effective than traditional methods like print ads and TV commercials.
How Can Marketers Benefit from Using Programmatic Marketing?
Many brands embrace programmatic advertising, which uses software and data to target audiences. Marketers can benefit from using programmatic marketing in a variety of ways.
- It effectively reaches consumers with targeted messaging, essential for creating brand awareness and driving sales.
- It provides a level of transparency for marketers; this give them total visibility over their campaigns
- It also provides businesses with detailed information about their customers to better serve them. This information helps marketers create more relevant ads that resonate with their audience.
- Additionally, programmatic advertising allows companies to get creative with reaching consumers by offering new ad formats like rich media ads or video pre-rolls.
- There aren’t any printing costs involved since most campaigns run online. This makes programmatic advertising ideal for small businesses that may not be able to afford expensive traditional ads.
- Marketers can use contextual or demographic targeting to reach consumers based on their online activity; these include location, age, and gender to serve ads to specific groups of people.
- Finally, it’s cost-effective. The programmatic process eliminates some of the costs associated with traditional forms of advertising, such as print and television ads. For example, brands don’t have to spend as much money on production costs because it doesn’t require a lot of manpower to run an ad campaign through programmatic channels.
Programmatic Advertising: The Pathway to the Future of Digital Marketing
We’ll likely see the prominence of the concept of programmatic ads grow in the future, as it’s an infinitely more efficient and effective way of buying and selling digital ad space.
The fact is, the programmatic industry has come a long way over recent years, but some important issues still need to be resolved before saying that it’s truly the future of online marketing. A limiting factor for programmatic advertising is its ecosystem; however, this will only improve with time.
You don’t need to look much further than what the programmatic ecosystem looked like 10 years ago to understand how developed and complex the current programmatic ecosystem is, and as technology becomes increasingly sophisticated, so will our means of reaching consumers through digital advertising.
The Trend Is Your Friend, Until the End When It Bends
If you’re looking to integrate programmatic into your digital strategy, you should ask yourself a few key questions: Is my target audience using mobile devices primarily? Does my brand have enough data available to run programmatic campaigns effectively? Do I have a sufficient budget for investment in technology, resources, and inventory costs?
With an increasing number of businesses turning to digital marketing to grow, improve sales, or bolster their customer service strategies, technologies such as programmatic advertising will only gain popularity in time.