Digital advertising continues to be the most beneficial and promising type of advertising nowadays with the unlimited potential to expand even more in the following years. One of the most prominent current trends in virtual advertisement is programmatic advertising. The programmatic ads are reported to represent more than 80% of digital ad revenue at the moment. However, a good chunk of companies is still hesitant to use programmatic monetization to their advantage. This type of adverts has numerous benefits and a great potential, which is why more and more companies continue to prefer it.
What Does Programmatic Advertising Mean?
The general idea behind programmatic advertising is very simple. Programmatic ads are those advertisements bought from automated sources. Traditional digital adverts require negotiating the details between the company that wants to purchase the ads and the advertiser. These details include numerous conditions, such as the pricing, ad placement, target audience, the platforms involved in advertising, etc.
This process involves meticulous research and takes quite some time. As we know, time is money, which is why programmatic advertising is so advantageous. All these negotiation stages are omitted with the programmatic ads as they are bought and placed automatically. And the research becomes even more precise as well.
Streamlining the process of purchasing advertising eliminates countless human interactions and, therefore, reduces the price. The cost saved in this process can be directed towards making the advertisement more specific and efficient.
The Benefits of Incorporating Programmatic Advertising in Your Campaign
With the ability to buy an advertisement in real-time via the automated programs, countless opportunities have opened before business owners. But is this programmatic advertising really that good? Let us take a look at some of the most noticeable pros of this kind of digital ads:
Collecting data in real-time:
Thanks to the automated solutions involved in ad making, it becomes possible to observe the performance of each advertisement in real-time. Companies will be able to see the coverage, views, target audience, and many other features of their digital ads updated live. All of it allows customizing the advertising campaigns on the go and making them more effective immediately instead of waiting for the data and implementing changes only then.
With all this real-time data collection, it becomes possible to have a better insight on the ad placement and other things like the amount of money spent on each ad and the exact demographics that get to see this advertisement. It becomes very clear when the ads will end up and what kind of consumers will actually see them in the end.
Reaching the target audience:
Programmatic advertisement has improved audience targeting solutions, which allow better and more specific ad placement that will reach only necessary consumers. Various data from third parties are collected automatically to generate the image of a precise target audience tailored to each separate advert. Another solution offers data collection from personal user profiles of the consumers to find better ads for them. This advertising can also use geo-targeting, specific application or website targeting, IP addresses, and so on.
Programmatic ads have a much wider reach than regular virtual advertisements because of using improved ad networking. This allows accessing more webpages simultaneously and covering a wider audience quickly. In addition, this coverage is even more cost-effective than before, offering amazing reach for affordable prices.
Ads becoming more relevant:
Reaching better-quality marketplaces results in increasing the relevancy of the advertisements and profiting from the improved traffic. This means that the companies will be able to get their money’s worth by hitting the exact consumers they want to and keeping their ads relevant.
The research shows that over the past years, the revenue from programmatic ads has been gradually increasing, and it will continue to grow for the next few years as well. Almost 25 billion dollars were made by the mobile ads alone last year. Almost 90% of mobile ads are programmatic advertisements, and the rest are traditional ads.
The benefits mentioned above are only some of the most visible advantages of programmatic advertising. More businesses pick up this strategy each year, and this type of advertising continues to expand, offering new benefits.