4 Advantages of Programmatic Advertising

4 Advantages of Programmatic Advertising

Programmatic advertising is taking over digital ads with an estimated $81 billion in ad dollars. But what exactly is it, and why is it dominating the digital marketing market? Keep reading to find out why programmatic advertising is important and the benefits of programmatic ads.

What Is Programmatic Advertising?

At the most basic level, programmatic advertising is the automation of buying ad space online to display advertisements to the right person at the right time. This removes the traditional process that involves human negotiations and manual insertion orders, which streamlines the entire process and increases the efficiency of buying and placing digital advertisements.

What makes programmatic advertising powerful is that it automatically matches advertisers who want to buy ad space on the internet with publishers and website owners. By using algorithmic software, programmatic advertising handles the auction, sale, and placement of ads. Programmatic advertising uses internet user historical surfing data and online profiles to help find strong potential customers for ads to help improve impression and conversion rates.

The Biggest Advantages of Programmatic Advertising

1. Improved Efficiency

Because programmatic advertising is automated, it improves the efficiency of advertising campaigns. The first way this helps is with a reduced launch time. It’s possible to ideate, create, and share an ad with customers in only hours, compared to the days and even weeks it can take to create an advertisement traditionally. This allows you to get relevant and timely information to your customers, like a limited-time deal or a new product.

Rather than wasting your advertising budget on generic or old content, you can promote what you want when you want to.

2. Improved ROI

Programmatic advertising makes the most of your advertising budget by targeting the right customer at the right time. Programmatic advertising places ads where they are most effective based on a customer’s search history, online profile, and search activity. This helps by targeting customers in the market for your product instead of wasting your budget by showing your ad to people who are not interested.

Programmatic advertising has higher click-through rates and conversion rates than traditional advertisements. They target leads to help them become better acquainted with a company at all points along the customer journey and guide them further along the sales funnel.

3. Precise Audience Targeting

Programmatic advertising allows businesses to precisely target hyper-specific audiences. Businesses can target based on:

  • Demographics – This includes age, gender, occupation, cultural background, and family status. Demographic information is collected from digital apps and provided by the customer to produce more targeted ads. 
  • Purchase intent – A customer’s purchase intent is determined by various factors that show they are close to buying a product or service. This can include their search and viewing history and how often and how long they visit product pages without making a purchase. 
  • Location – Location matters when it comes to targeting the right audience. With addressable geofencing, it’s even possible to target specific home and business addresses.
  • Household income – Neighborhoods with higher household incomes typically have the budget for products and services sold at a higher price point. Additionally, targeting different household incomes for the same product can influence how you market a particular product. 
  • Behaviors and interests – Cookies, search history, and web analytics can allow companies to use behavioral marketing. This helps companies make hyper-specific advertisements for customers at all points of the sales funnel rather than creating a generic message to attempt to reach all audiences.

4. Real-Time Insights

Because programmatic advertising is entirely automated, it provides up-to-the-minute updates. As soon as an advertising campaign goes live, it instantly starts providing performance insights, including where ads are placed and the activity from each placement. This real-time transparency helps businesses have a realistic and accurate understanding of their advertisements.

Partner with Agility Digital

Agility Digital knows the advantages of programmatic advertising and how to best leverage them for a wide variety of companies in every market. Schedule your demo today to learn more about how you can leverage programmatic ads for your marketing strategies.

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