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Programmatic Marketing: Do You Understand It Fully?

Phillip Reinhardt

In 2019, if you’re anything like other digital marketers, you’re going to spend about 65% of your total digital advertising budget on programmatic marketing. Programmatic marketing includes any digital marketing that involves real-time bidding. Google Adwords is a perfect example of programmatic marketing in action. In general, however, programmatic advertising works like this:

  • A user navigates to a page that has ad space set aside programmatically.
  • The marketplace analyzes the user’s behavior based on tracking cookies, profile information, etc.
  • This user is presented to advertisers automatically auction-style. Whoever is willing to pay the most for the user is given the ad space.

This all happens automatically, in a fraction of a second. Users never even know that companies are bidding for their valuable impressions.

Below, let’s take a closer look at why programmatic marketing is a benefit to advertisers, where it’s headed in the future, and how to make it work for you today:

Benefits of Programmatic Marketing

Programmatic marketing is great for companies selling advertising spaces since they’re guaranteed to get the best price each time. There are some distinct advantages for marketers, too:

  • Cost Effective – it seems counter-intuitive, but you can actually control your budget very tightly. You’ll be able to control how much you’re willing to pay per impression and overall. By targeting specific, niche audiences, you can drive your cost per impression way down.
  • Data – programmatic marketing gives you instant insights into your audience. What people are actually interested in your ads? What messaging works best? You should use this data across the rest of your marketing strategy to improve results across the board.
  • Scalable – you can reach new audiences or increase your reach to your existing audience with the click of a button.

One of the biggest benefits of programmatic marketing is the total control it gives you over your budget.

The Future of Programmatic Marketing

While programmatic advertising is mostly reserved for digital ads right now, it might not remain that way. Television networks in most major markets, for example, are beginning to experiment with programmatic ads themselves. Streaming companies are already using programmatic algorithms to deliver their ads. It’s entirely possible that you’ll be able to deliver television and radio ads via programmatic advertising accounts in the very near future.

Optimizing Your Programmatic Marketing Strategy

Now that we understand exactly how programmatic marketing works, we can start to think about how to best take advantage of it. As with any marketing strategy, you need to tailor all of your processes for your specific audience and brand. However, these tips below should give you a solid foundation:

  • Personalization – you’re targeting a specific audience and it’s important to use that to your advantage. Don’t just create a couple of ads and then send them to your target audience. Spend time creating very specific audiences and making tailored ads for each one.
  • Authenticity – because you’re targeting people so precisely, the ads will need to feel more personal. If the message doesn’t fit, they’re going to ignore it completely. Be honest and keep it simple.
  • Target a specific outcome – you need to be honest about what the best next step is for your audience. If it’s a Google AdWords search, depending on the term and your business, they very well may be ready to make a purchase immediately. If it’s a Facebook Ad, however, they may just be interested in gathering some information. Think about your customer journey and where each ad fits into it. You’ll enjoy much better success rates than by simply trying to push everybody to purchase right away.