The Power of Programmatic Advertising in Scaling Your Business

Programmatic advertising may seem intimidating for a newcomer because of the complexity of the back-end process. To top it, the jargon used in explaining the concept makes it altogether difficult to understand the basics. That being said, programmatic advertising is the present and future of marketing, hence, it is important that you understand it for the growth of your business.

In this blog, we will demystify the mystery behind programmatic advertising and how you can use it to scale your business.

First, let’s break down programmatic advertising in simpler words.

Programmatic advertising is basically the process of buying and selling advertisements online at a common marketplace with the help of automation. While researching about it, you may also come across terms like DSP and SSP. DSP stands for Demand Side Platforms and SSP stands for Supply-Side Platforms.

Understand it this way; the supply-side is the publisher’s side (a website, for example) which offers digital space in the online marketplace to advertisers for showing advertisements to a consumer. Demand-side is the advertiser’s side (a food chain, for example) that is looking for space in the digital world to reach their customers. These two sides come together at a common marketplace or programmatic advertising platforms like Display & Video 360, The Trade Desk, Adobe Ad Cloud, Amazon DSP, etc.

DSP has data about the kind of consumers advertisers want to reach. Bidding is initiated when the particular kind of customer visits an online space and the advertiser wants to show them an ad on the publisher’s platform. The highest bidder wins the auction.

The whole process of bidding, buying and selling takes only about a few milliseconds. 

As a beginner, this introduction is a good start to enter the world of programmatic advertising.

You may think Programmatic Advertising is just another trend but it is not.

Let’s have a look at some statistics which prove that Programmatic Advertising is here to stay.

About 54% is the share of programmatic advertising in U.S. media budgets. Globally, 129.1bn USD is spent on programmatic. Now, these numbers are significant and reinforce the fact that marketers are shifting towards programmatic advertising because of the value it offers.

In fact, it is estimated that by 2023, the U.S. will spend $133.04bn on programmatic display ads.

The chart below signifies year on year growth of programmatic advertising.

The data is taken from a study done by e-Marketer.

To give it more perspective, here’s something you would like to know. Facebook reaches 2.31 billion people per day and YouTube reaches 2.31 billion people per day. The Trade Desk, a programmatic platform, reaches 4 billion precisely targeted consumers per day.

Benefits of Programmatic Advertising in Scaling Your Business

Programmatic Advertising offers numerous benefits to businesses utilizing it. Below are a few reasons you must consider if you are planning to invest in Programmatic Advertising.

1. Improved Return on Investment

With Programmatic Advertising, businesses can target exactly who they want which leads to less wastage in terms of clicks and impressions. You will end up spending less money on displaying ads to people who are not interested.

Remnant inventory is also brought to use which makes the ads considerably cheaper. The publishers which were traditionally struggling to sell the ads will have the option to put up their ad space for auction.

AdRoll surveyed 350 marketers in New Zealand, Australia and Singapore. More than 80% of respondents agreed that programmatic advertising offers a better return on investments than traditional forms of buying media.

2. Better campaign performance

For getting tangible benefits out of your Programmatic Ad campaign, you must know how to use it correctly. You can do this by first knowing your audience and where you can find them. Buyer personas can greatly benefit you in this step as they will help you to visualize your target audience. You must also explore the markets and inventory and select the ones which are beneficial for you.

Programmatic Ad platforms also have great tracking abilities. You can use this data for following your potential customers and showing them ads through remarketing and lookalike targeting— wherever it is relevant.

All these efforts will lead to improved results as the ads will be shown to the people who are actually interested in your brand. This kind of data-driven advertising is way more successful than traditional digital marketing strategies.

3. Real time Measurement and Optimization

The performance of each ad campaign can be measured in real-time with programmatic advertising. In the early days of digital marketing, marketers got to analyze the campaign once it was finished. It used to be a whole cycle— first an ad campaign was initiated for a fixed time and then the marketer had to wait until it was finished to extract the results. Later, the learning from the previous ad campaign was used in the next ad campaign.

Programmatic advertising mitigates this problem and lets you make changes in real-time and optimize advertisements while they’re running. Even small changes can lead to significant changes. A/B testing also becomes easier.

Jupyter Analytica can help you in optimizing your ads for the best results. We have experts well-versed in programmatic concepts and know what works and what doesn’t.

4. Better Targeting Capabilities

The software used to buy programmatic ads uses a vast amount of data to eliminate the guesswork used in traditional ad campaigns. It gives advertisers the freedom to target the users on the basis of their browsing behaviour, geolocation, interests, etc.

Think of Programmatic as an omnichannel approach. You will be able to target your potential customers on multiple devices at the right place and at the right time. It is a great opportunity for influencing the purchase decisions of your target audience.  Moreover, as an advertiser, you will choose the ad impression instead of the publisher choosing it for you. It has a lot of room for experimentation and knowing what works for your business.

5. Reduce Effort Through Automation & Machine Learning

Marketers often end up spending a lot of time negotiating with publishers, filling out forms, looking for ad spaces, etc. Programmatic software takes care of the whole process with the help of automation and artificial intelligence, hence, reducing the load on the workforce. The saved time can be used where it actually matters like strategizing and creating efficient campaigns which will eventually lead to better selling points.

The software can download significant amounts of data which helps in effective targeting. It would be humanly impossible to consume so much data. So, let the software do the heavy lifting while you leave the campaign on auto-pilot more and observe the analytics.

Choice and scale is the real power of programmatic advertising. It is not a surprise that it is getting popular amongst marketers with each passing day. It will allow you to interact with your target audience at multiple touchpoints efficiently, which will increase your return on ad spend. Jupyter Analytica can help you achieve your business goals with the help of programmatic advertising. We have a team of programmatic ad experts who have versatile experience of working in multiple industries. Get in touch with us for exploring the option and get the best returns out of your digital marketing budget.