Programmatic advertising has redefined digital advertising and is deemed the future of online advertising. It may just be the ultimate simple and efficient solution to solve the complexity of digital advertising, given the diverse online media and cross devices consumption by consumers.
Programmatic advertising is gaining strong traction globally among businesses and marketers. And this is propelling the rapid growth of advertising volume. According to a report that was released by E-marketer, US advertisers spent about $57.3 billion on programmatic advertising and it is estimated that by 2021, almost $80 billion will be transacted programmatically.
So let’s find out why businesses are jumping on the bandwagon of programmatic advertising.
What is Programmatic Advertising?
Programmatic advertising, also known as programmatic marketing, is the automation of buying and selling of online advertising, including display, mobile, video and even TV & audio, in real-time by using artificial intelligence (AI) and real-time bidding (RTB) and this allows you the opportunity to show your ad to a specific audience in a specific context. It is exceptionally time-saving since it eliminates the need for manual human effort for proposals, quotes, negotiation, buying with various media owners, multiple setups, and ongoing optimization. With programmatic advertising, you also have access to a wide reach of audience, targeting capabilities, and real-time data & insights.
Is Programmatic Advertising The Future Of Digital Advertising?
With the benefits that it brings and traditional online advertising being less efficient and reliable. It shouldn’t be surprising for many to see it as the future of digital advertising. With the screaming growth, it is no wonder that experts are suggesting that all digital advertising will soon go programmatic. So yes, it is the future of digital advertising, and the future is Now.
Why Programmatic Advertising?
Many marketers and businesses are investing in programmatic advertising because it makes ad buying more effective and efficient. Let’s look at the key benefits that can offer:
- Efficiency. Efficiency is achieved with automation eliminating the need for manual work of multiple buying, placement, set up, and optimization. With automation, it also means it is running 24 by 7 and this is hardly attainable with manual efforts by humans. The time and efforts saved from manual operation tasks can then be reinvested into strategic marketing actions like measuring, reviewing, and refining the digital marketing strategy/ plan and fine-tuning the audience targeting and campaigns.
- Transparency. Programmatic advertising offers real-time transparency of where your ads have appeared, how much it has cost you, and who has seen your ad. You can make smart and informed decisions around the necessary adjustments and optimizations very quickly with this information.
- Wide Reach. It offers you a wide potential reach of your prospects and customers. There are more than 4.5 billion active internet users globally and you have access to this potential reach (of course depending on your targeting parameters) through it.
- Relevant Reach. With the huge potential in audience reach, you need to ensure you have the right targeting strategy in place to earn you a qualified reach of the right ones. Programmatic advertising uses technology and data to provide you robust targeting capabilities to help you achieve a qualified and relevant reach to maximise performance and ROI from your marketing investment. Some of the available targeting options include, but not limited to,
- Audience Targeting: Reaching out to individuals based on specific demographic (gender, age, income, education, etc), interests, or behaviors. This targeting is useful if you have the knowledge of your audience profile but unsure where to find them.
- Contextual Targeting: Reaching out to audiences who are reading very specific content on the sites. Programmatic advertising allows you to get very specific with showing your ad on different types of content on specific pages.
- Placement Targeting: Showing your ads on specific websites or mobile apps. This targeting is good for marketers or business owners who know what sites or apps their customers and prospects are using.
- Geo-Fencing: Targeting individuals within a specific location perimeter. A geofence is a virtual perimeter for a geographic area in the real world and this targeting is useful if you are reaching out to audiences within a specific geographic perimeter, like within a specific location, near your physical store or your competitors’ store.
- Climate and Weather Targeting: Showing ads based on weather (sunny, rainy, snowy, etc) or temperature. Such targeting is good if there is a correlation in the demand for your products/ services with the climate or weather.
These targeting options are not mutually exclusive and an optimal solution combines different types of targeting options with ongoing experiments and refining to earn you the most qualified and relevant reach.
- Everything In Real-Time. Programmatic advertising allows you to buy online advertising space, gain access to measurement and insights, and optimizes in real-time. This translates to efficiency and effectiveness in online advertising.
W360 Group – Leading Programmatic Advertising Agency In Singapore and Asia
With all the automation, humans are not needed for programmatic advertising and anyone can do it, isn’t it? Well, while automation is driving programmatic advertising. It does not replace all of the human efforts required in effective digital advertising.
This automation only takes over some of the manual tasks that humans used to perform and hence free them up to focus on other strategic functions like strategy, planning, and setting up & refining the campaigns. You still require knowledge of advertising platforms, setting up the right audience targeting and more to achieve success. So if you are lacking in-house know-how or resources to embark on effective advertising, we are here to help.
RAM2P Your Digital Advertising: The rules of effective digital advertising remain unchanged whether it’s traditional advertising. It’s all about reaching the Right Audience with the Right Messaging and Moment on the right Platforms. We focus on building the right strategy and programmatic advertising solution with this key methodology in mind.
We are the leading programmatic advertising agency in Singapore and Asia deploying sophisticated tools and platforms and equipped with the expertise and experience in programmatic advertising. Our team of digital superheroes can help you achieve success in programmatic marketing to grow your business with us!
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