According to eMarketer, programmatic advertising accounted for almost 85% of digital display ad spending in 2020. And by 2021, American online display advertisers are expected to invest approximately $80 billion in programmatic advertising. This algorithmic ad-buying niche has shown consistent growth from the time when automatic ad placement became possible.
Both demand and supply partners clearly understand the advantages of programmatic buying. That’s why industry specialists propose that all online advertising will soon become programmatic.
To cut programmatic costs and safeguard brand reputation, the GDPR guidelines have compelled advertisers to start investing more in building data infrastructure and assessing media quality. The targeting abilities have also evolved with the improvement in data management and handling procedures. As a result, programmatic advertising has become increasingly effective for advertisers and publishers.
In this article, we’ll take a look at some of the top benefits of programmatic advertising and how it can immediately elevate your advertising campaign in 2021 (and beyond).
Source: Chatbot Magazine
1. Programmatic advertising transforms multichannel into omnichannel
Programmatic advertising has plenty of benefits. However, what makes this technology exclusive in 2021 is the omnichannel approach. There’s a massive increase in the number of channels the users go to regularly. Today, advertisers should have the ability to address the users wherever they are.
The programmatic advertising advantages are effective for both the demand and supply sides. It enables marketers to reach users on smartphones, iPads, PC, and even smart TV all at once.
This cross-device online advertising helps to serve ad campaigns on several screens. It shows where the customers interact with advertisements more dynamically. Similarly, programmatic can help publishers explore the most fertile grounds to monetise their inventory.
For example, Starbucks’ loyalty program was based on customer cards that were linked to the user’s accounts. If they ordered coffee via phone, the app estimated the time it’d take them to reach Starbucks. The coffee was already prepared for the user by the time of arrival.
2. Programmatic advertising allows personalisation
As programmatic advertising supports real-time bidding, it helps advertisers and publishers with instantaneous ad trading. This allows better and quicker targeting, enabling advertisements to be purchased and sold on a per-case basis. This means the ad will be served only to the users who are in your target audience.
You can deliver ads correctly, in line with the targeting options and trading considerations. Moreover, you can also interact with particular customer segments, targeting based on the device, geolocation, personal interests, and content.
While publishers make money from displaying advertisements to niche viewers, companies get the opportunity to serve related ads to prospects, anytime, anywhere.
3. Programmatic advertising extends the audience segments
Programmatic advertising empowers you to automatically reach the user segments that have higher likelihood of turning into customers. It allows look-alike modelling that makes customer acquisition quite economical.
How? AI and MA algorithms previously define that specific user segments have a decent history of clicks on a certain kind of promotion. The system identifies completely new users who might also take interest in your offering.
For instance, suppose an apparel brand that creates leisurewear for golfers finds out that their accessories, particularly sports glasses, are frequently purchased by a completely new users such as bikers, backpackers, and youngsters. Using this insight, they can turn their sunglasses into a fashion trend and market them to the new users accordingly.
4. Programmatic advertising offers a holistic data management approach
As constituents of the programmatic system are strongly incorporated, they keep user data organised and consolidated. For example, a data management platform (DMP) gathers 1st and 3rd party information on current customers from diverse networks, devices, offline, and online sources. It can collect and analyse audience segments in real-time.
A demand-side platform (DSP) or a supply-side platform (SSP) consequently uses the outcome to tweak advertising possibilities in line with behavioural factors, personal inclinations, and perceptions of the prospective consumer.
Another big benefit of programmatic advertising is data analytics as it can expose trends and give actionable acumens to facilitate corporate decision-making. Machine learning (ML) procedures enable forecasting outcomes of marketing campaigns and notify advertisers about potential drawbacks.
All this data can help advertisers to determine customer behaviour patterns and maximise present opportunities. For example, advertisers at Red Roof Inn hotel chain used flight tracking technology to launch targeted mobile advertising. If a flight was delayed and there was a Red Roof Inn hotel near the airport, travellers got a promotional message attracting them to visit the hotel. Consequently, the brand improved sales by almost 60%.
5. Programmatic advertising offers endless supply and demand
Programmatic advertising offers instant access to the online inventory pool. Via a DSP, marketers get in the market quickly and can instantly begin purchasing online media inventory from several publishers internationally.
Programmatic platforms give access to the inventory of all shapes and formats, both premium and remainder. Moreover, publishers relish the advantages of the higher demand during programmatic procurement. This lets them sell impressions at competitive rates and effectively monetise the traffic.
Programmatic advertising offers several approaches to ad purchasing. For example, advertisers can purchase inventory on a per-impression basis via instantaneous bidding auctions. Alternatively, they might choose programmatic direct transactions and purchase ad impressions that are guaranteed by particular publishers.
On the other hand, premium publishers offer select niche users to invitation-only associates in private marketplaces. Lastly, publishers and advertisers can have fixed price agreements.
6. Programmatic advertising ensures a safer marketing environment for everybody
Ad fraud disturbs the entire online advertising ecosystem, generating malicious traffic. Consequently, the advertisements are viewed not by real users but by bots that never transform into consumers. There is a risk for the brand reputation when the ad is shown on an unsuitable website.
There’s another transparency issue related to extravagant charges and commissions within the chain. In 2021, the advantages of programmatic advertising include improved transparency throughout the ad trading process and the opportunity to secure acquisitions with cutting-edge programmatic technology.
For example, ads.txt is a great way to authorise discrete merchants that are qualified to sell the inventory. Moreover, IAB Lab introduced ads.cert in 2019 that provides clear and thorough info about inventory. To ensure transparency and security of programmatic advertising, it is best to adopt forward-looking platforms like Eskimi that use multiple layers of brand safety.
7. Programmatic advertising aids in reporting
Programmatic advertising supports robust real-time reporting and granular analytics. Media purchasers and sellers can view reports via dashboards and measure ad performance using important advertising metrics like click-through rate (CTR), conversion rate, impressions, bounce rate, customer engagement rate, traffic, and overall return on investment (ROI).
Modern programmatic platforms like Eskimi offer a range of analytical tools to offer insights into what’s happening. You no longer have to evaluate anything manually as technology takes care of all calculations.
Leverage the Benefits of Programmatic Advertising with Eskimi
As online marketing is progressing quickly, it is indispensable to embrace programmatic into your overall advertising plan. The benefits of programmatic advertising are concentrated on personalised message delivery rather than showing mass advertisement campaigns. That’s how you can keep your marketing pertinent and decrease the ratio of fruitless impressions.
With Eskimi DSP, you can access data about the users of 40+ markets and even create audiences by interests (2200+ categories). This helps you reach the most interested audience with personalised content. Moreover, as it serves the ads for target consumers only, you can use your budget smartly instead of wasting it blindly.
Eskimi DSP has accumulated unique data that enables businesses and brands to manage their budgets effectively. Get in touch today to learn more about how we can help you embrace programmatic advertising.