What it is #programmatic #advertising and tips for getting started
In a public auction, the bidding process can take a few minutes. But in the digital age, offers can take a split second.
What is programmatic advertising?
Programmatic advertising is the process of using technology to automate the buying and selling of online advertising. It's a real-time ad buying process and it's extremely effective.
With advances in the online ad buying process, small and medium-sized enterprises (SMBs) now have access to tools that empower them to harness the power of data and apply it systematically to increase conversions from online ads.
How do small and medium-sized businesses use programmatic advertising?
To answer this question, Ascend2 and Perfect Audience teamed up to field a poll and published the results in a report entitled The State of Programmatic Advertising from the Small and Mid-Size Business Perspective . The survey was conducted in June 2020, and a total of 213 marketing professionals from companies with less than 500 employees participated in the survey.
Below are some noteworthy findings from the research study and some practical strategies and tips on how to apply research to influence your marketing programs.
# 1: Programmatic advertising budgets are increasing
Programmatic advertising can extend often limited advertising budgets beyond traditional options. Despite the uncertainty in many industries, about two-thirds (65%) of marketers say they expect an increase in their programmatic advertising budget in the coming months.
Quick tip from research: Programmatic advertising is based on real-time bidding, enabling faster, more efficient , and a less expensive advertising experience. Given the inherent benefits of programmatic advertising, it is no surprise that budgets increase when most marketing budgets decrease during the COVID-19 economic crisis.
# 2: Start your programmatic advertising program with the end in mind
What are the primary goals of your programmatic advertising program?
For small and medium-sized results-oriented businesses, a well-executed programmatic advertising program provides a channel to increase profits with maximum efficiency. Growing sales and generating leads are top priorities when running an online ad buying program for 57% and 48% of SMB marketers surveyed, respectively.
Quick tip from research: When determining your primary goals, you need to define the purpose of your campaign. Campaigns should have a single goal (drive sales, generate leads, brand awareness) and each goal requires a specific strategy. Each program requires an ad set, landing page, call to action, and unique metrics to measure success.
# 3: Programmatic advertising is challenging (but worth it)
Delivering the right ad, to the right person, at the right time requires an enormous amount of data, monitoring and technology. This is why 46% of small and medium-sized businesses say audience targeting is a major challenge when it comes to programmatic advertising. Allocating enough budget to execute their strategy is also an obstacle for 37% of respondents.
Quick Tip from Search: Follow ROI and data to find the best audience to target. Did you know that with Facebook and Google you can only reach half of your audience?
Programmatic advertising platforms will help you reach the other half of your audience. The webinar, Retargeting Beyond Facebook and Google provides more information on how to reach a wider target audience.
# 4: Audience targeting is the most effective tactic for a programmatic advertising program
A powerful targeting solution is critical to the success of a programmatic advertising strategy. Audience targeting is considered the most effective tactic for a programmatic advertising program for a majority of 72% of small and medium-sized marketers. Keyword targeting is also a tactic with which 40% of respondents were successful.
Quick Tips from Research: Don't overlook the success of retargeting. The average CTR for retargeting ads is 0.7% versus 0.007% for display ads. Retargeting delivers ads to customers after they leave your website. It allows you to show your visitors relevant ads when they visit other sites.
Here are some of the benefits of retargeting:
- Brand increase : Four weeks after implementing a retargeting campaign, marketers saw an average 1046% increase in searches for terms related to the brand. Performance was more than double that of non-retargeting audience targeting.
- Improved click-through rate and conversion rates: Three out of five viewers notice and consider ads they have previously seen from another source ( eMarketer ). Retargeting has 10 times the clickthrough rate of a normal ad (Wishpond). Visitors who are redirected are also 43% more likely to convert than those who are not. (Criteo)
- Better value for money than other advertising methods : 91% of marketers who have used retargeting think it works the same or better than search, email or display ( IAB )
# 5 : Return on Investment (ROI) Is the Most Important Metrics of a Programmatic Advertising Program
Measuring the impact of advertising campaigns is critical to optimizing a programmatic strategy. Return on Investing (ROI) and Return of Ad Spend (ROAS) are the most significant metrics for tracking success according to 58% and 36% of those marketers who work with companies with up to 500 employees.
QUICK TIP from Research: What is the difference between ROI and ROAS? ROAS is a subset of ROI and tells you if an advertising campaign is working. ROI tells you if the entire program or department is profitable. Here is a video that gives more details on the differences between ROI and ROAS (starts at minute 2:55 of the video).
Here is a link to the entire report, The state of programmatic advertising from the perspective of small and medium-sized businesses.