Programmatic advertising is a sophisticated process that involves the buying and selling of digital ad space. At its core, an AI engine drives this system, utilising complex algorithms to efficiently manage an ad exchange.
Through Real-Time Bidding (RTB), the engine facilitates seamless connections between advertisers and publishers. This streamlined approach ensures that businesses can effortlessly place their ads in front of the most relevant audiences, precisely at the right moment and location.
Now that we have a brief overview of what it is, let’s dive into the benefits of programmatic advertising.
Benefits of Programmatic Advertising
Simply put, programmatic advertising is a faster and more efficient way of media buying that bypasses manual interventions, negotiations, and constant back-and-forth. However, the benefits of programmatic advertising are slightly more nuanced than this simplistic definition. Here’s how:
#1 Targeted Advertising
Programmatic advertising is highly specific. It leverages advanced analytics to formulate the optimum placement of ads depending on a variety of factors. These parameters typically include industry, audience demographics, behavioural data, context, location, device, host website, etc.
Marketers can experiment with these variables to perform segmentation and craft personalised campaigns. Doing so ensures that the brand advertisement is right where it should be for maximum conversion. Such an approach also offers a thrust to retargeting campaigns by recapturing lost prospects into the funnel.
#2 Blends Creativity & Variety
Another notable benefit of programmatic advertising rests in the mix of a variety of ads and creativity. Rather than depending on a specific advertising format or medium, marketers can play around with variations to attract the best results.
The different kinds of programmatic ads include audio, video, display, native, Connected TV (CTV), and Out-Of-Home (OOH) ads. Such a combination of mixed media and varied inventory of ad assets makes it easier for brands to sprinkle creativity everywhere to attain high engagement and conversion rates.
#3 Wider Audience Reach
Programmatic advertising allows businesses to establish an omnichannel presence. As noted above, it unlocks an assortment of advertising formats, which even covers OOH and CTV. Marketers can distribute such collateral across multiple channels and feature them at various touchpoints to capture and rekindle interest.
As such, even if the target audience were to switch channels or devices, they would still be accessible as leads. This cross-functional strategy to make brands ubiquitous increases reach through continuous exposure.
#4 Greater Transparency & Control
Programmatic advertising incorporates a layer of transparency that is unparalleled. Marketers can gain an eagle-eye view of where the ads are published, the kind of audience viewing such ads, the real-time campaign performance, and the overall cost of running such a campaign. Such visibility allows them to track and monitor success.
Alternatively, they can carry out corrective or reparative actions. Marketers can also set up trigger campaigns that automatically kick off upon meeting configurable criteria – say when it rains!
#5 Flexible & Scalable Budgeting
Strategic budgeting is one of the most notable benefits of programmatic advertising. Anyone, from well-established enterprises to startups and SMBs, can hop onto programmatic advertising without any tangible budget constraints.
Marketers work with a predefined budget, which means the ad cost won’t exceed a prescribed ceiling. And once companies gain traction and continue to grow, they can always scale operations to match the shifting organisational requirements.
#6 Real-Time Decision Making
Programmatic advertising rests on the foundations of real-time data and analytics. As such, marketers can make quick and contextual decisions while submitting or optimising bids. Not only do such proactive adjustments land brands at a vantage point but also add campaign effectiveness through on-the-fly decision-making.
Marketers can reinforce this value chain by plugging real-time metrics to measure campaign performance and introduce necessary tweaks to obtain desired results. The cumulative action of such activities in real-time ensures that businesses capitalise on every trend and opportunity while avoiding or correcting mistakes.
#7 Higher Return on Ad Spend (ROAS)
Programmatic advertising is an effective marketing channel to improve return on ad spend. For instance, targeted campaigns will drive conversions and fetch more sales. An omnichannel presence will generate awareness to improve brand position, while an expansive reach will attract more leads and increase revenue potential.
Similarly, scalable and flexible ad budgeting will optimise spending without affecting campaign performance. Whichever way you see it, programmatic advertising offers a multi-dimensional push to increase ROI.
Return on Ad Spend (ROAS) = Total Campaign Revenue / Total Campaign Cost
The benefits of programmatic advertising are as follows:
- Targets the right customers in the right location at the right time
- Unlocks different advertising content formats
- Increases advertising reach across multiple channels
- Grants marketers higher control over campaigns
- Makes advertising affordable and accessible to all
- Supports real-time decision-making and pivoting
- Maximises the revenue potential and profit margins
Working With M&C Saatchi Performance
Evidently, the benefits of programmatic advertising can propel brands to new heights. Even if the path to stardom may vary, be it through brand creation or resource optimisation, the end result would be the same – successful business outcomes.
At M&C Saatchi Performance, our team of experts will help you formulate programmatic campaigns that speak directly to the target audience. Contact us for more information on our programmatic advertising services.