Programmatic advertising is one of the popular trends in the digital marketing landscape. It’s no wonder businesses are jumping on the trend, with the expected growth in digital displays of 91.1% in 2023.
But what exactly is to thank for the dramatic rise of programmatic advertising, and how does it work? Continue scrolling to find out everything, including the benefits of its usage in media buying!
What is Programmatic Advertising? A Brief Overview
Programmatic advertising refers to buying digital display ads in real-time using artificial intelligence (AI) and automation. Using algorithms and data, this process determines which ad to display, when to display it, and to whom. As a result, businesses can automate buying digital ads, saving time and money while increasing ROI.
How Does Programmatic Advertising Work?
With programmatic advertising, you can target potential customers based on demographics, interests, and online behavior. Consequently, this allows you to successfully and profitably reach your desired audience. Moreover, it enables you to optimize ad campaigns in real-time to ensure the largest ROI.
Okay, but how does programmatic advertising actually work? Well, let’s break down the process:
1. Setting Up Your Programmatic Campaign
Initially, the first step is to set up your programmatic advertising campaign. To reach the intended audience, you can use an ad platform and target specific criteria while setting a budget for the campaign. Lastly, you can use data-driven insights to optimize your ad campaigns for better performance.
Subsequently, once the campaign is set up, the auction process begins. Marketers buy and sell ad impressions in real-time through a bidding system. The bidder with the highest bid gets to show their ad to the target audience.
3. Reporting & Optimization
After showing your ad to the people you wanted to see, it’s time to see how well it did. Analyzing the performance of your campaigns can help you improve and maximize your investment. You can increase your ad’s reach by targeting new audiences and bidding more on specific placements.
Why is Programmatic Advertising Popular?
Moreover, programmatic advertising has seen a tremendous rise in the recent past due to its many benefits. Below are some of them:
- Greater Efficiency
Programmatic ads can simplify the ad-buying process. A study found that combining campaigns with programmatic ads can increase reach by 11%.
- Enhanced Targeting
According to Social Samosa, programmatic advertising helps businesses target their desired audience based on demographics, interests, behavior, etc. This helps them reach the right people with the right message.
- Improved ROI
Programmatic advertising allows multi-platform customer reach and personalized content, resulting in increased ROI. It accesses behavioral data to identify the target audience and promptly delivers customized content.
How Periphery Digital Can Help!
Experts predict that programmatic advertising will be one of the most in-demand digital trends in 2023. With its AI-powered technology, real time bidding process, and advanced targeting options, programmatic ads provides businesses with an effective way to reach their desired audience and maximize ROI.
If you’re looking to capitalize on the benefits of programmatic advertising, Periphery Digital is here to help! We are Vancouver’s top digital marketing agency, passionate about assisting businesses to maximize their ROI with powerful and effective programmatic campaigns. Our team of experts can create and optimize campaigns tailored to your specific needs and goals. With our cutting-edge technology and data-driven insights, we can help you reach the right people with the right message.
Ready to get started? Contact us today and take the first step toward making your programmatic campaigns successful!