Digital Advertising

What Are the Benefits of Programmatic Advertising?

The Advantages of Programmatic Advertising

Advertising on the Internet has changed a lot since the first banner ad appeared on the web. At present, programmatic advertising offers many interesting techniques that can be leveraged to promote your brand. What are the benefits of programmatic display ads? Read our article to learn more.

In this article you will learn: 

  • Why programmatic advertising is essential for a brand’s success
  • What is going to change in advertising with the removal of third-party cookies
  • How organizations benefit from programmatic advertising
  • What has to be done in order to leverage the potential of programmatic advertising

Table of Contents:

Why is programmatic advertising so important for business?

In the very beginning, companies had very little influence on who would see their content. Ads were nothing more than static banners with small amounts of text and even though there were some methods for targeting, with the rise of programmatic and the usage of cookies the options became more sophisticated. Finally, machines and certain algorithms replaced humans in the process of buying ads, which made advertising simpler and more effective than before. 

These days, access to big data and artificial intelligence enables organizations to leverage more sophisticated techniques of making themselves visible to potential customers. Programmatic advertising allows companies to leverage automation, as well as other, advanced advertising techniques and technologies (such as contextual targeting etc.). It also makes it easier for companies to measure ad performance and come up with proper adjustments for their campaigns. 

Third-party cookies removal from Chrome equals a new era for advertisers

The growing prioritization of consumer privacy and user experience is a catalyst for developing and introducing new advertising technologies and techniques to the market. It is also the reason why current solutions are being assessed for how much they rely on access to the sensitive data of users. The announced future third-party cookies removal from Chrome creates new challenges for advertisers, but also forces them to leverage more sophisticated methods of promotion, which positively impact user experience. This is one of the main catalysts for the evolution of programmatic advertising, since brands will no longer be able to leverage third party cookies for personalization. Publishers are not wasting any  time and are already working on preparing and introducing new, advanced advertising techniques to the market. Cookieless targeting methods that you can take advantage of are already available. 

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The main benefits of programmatic advertising

Collaboration with programmatic advertising companies provides organizations with access to attractive advertising solutions and more precise tools. These techniques and software enable users to find new opportunities to solve their ads-related challenges in their businesses. Various benefits of programmatic marketing are present.

Ease of using ads in any format

Why limit yourself to static ads with some short text and simple graphics when you can achieve way more by stimulating other senses of your audience as well? In the programmatic advertising ecosystem, you can easily leverage any available ad format. Video ads allow you to describe your products and ideas with visuals, sounds, and text. Such campaigns will be even more effective if you empower them with advanced technologies. Video advertising combined with contextual targeting makes it easier to reach the proper target group without violating the privacy of your potential customers. 

Campaign budget optimization

Leveraging automation is a more effective approach to buying ads. The algorithms can identify the best opportunities and places on the internet where an ad should be displayed to perform with the highest efficiency. Putting software between ads publishers and companies that try to promote their content, increases the efficiency of the entire process. With no need for terms and price negotiations, both publishers and brands can save a lot of time and money. 

More accurate targeting

Reaching a wide audience is important, but reaching ”the right” audience is, in fact, even more important. After all, you always address your campaigns to those who may be interested in your offer, so you should try to display your ads in the right place and time. Programmatic advertising allows companies to make the most of various targeting techniques that enable entities to present their content to those who could potentially be interested in it (using methods such as behavioral targeting, contextual targeting etc.). With programmatic advertising, we are capable of displaying the right content automatically at the proper time during the day. Additionally, personalization is even more effective, as we can reach a very specific audience (e.g. people from certain cities with particular purchasing habits). By using programmatic advertising, you increase the possibility of presenting your campaigns to the right audience. Such advertising also provides an organization with better flexibility, so it can react quickly to changes on the market. 

Improved user experience

Internet users were never ecstatic about huge amounts of ads on webpages – can we blame users? Irritating ads that are not at all related to the website’s topic often have the exact opposite effect than their creators want them to have. Still, intense advertising doesn’t have to be annoying. The idea of great advertising is to get better control over your campaigns. Programmatic advertising allows you to increase the chance that your ads will be displayed in the right place and at the right time.

Efficient campaign performance monitoring

Programmatic advertising gives an organization better control over specific campaigns, resources, and goals. There are many tools that enable organizations to track their campaign’s performance and results. Various metrics can be applied to measure the effectiveness of your organization’s advertising. You have to remember, though, that some metrics are more suitable for evaluating specific types of campaigns. For example, metrics like VCR and CPCV are typical for assessing your video branding campaign success. 

Prevent your brand from being associated with improper content

Every company should use some type of brand safety solution to make sure that their ads will not be displayed on some types of websites. Business organizations in general don’t want to be associated with content such as fake news, conspiracy theories, pornography, or violence. This could reflect poorly on their credibility and brand image. Deep Learning based solutions powered by Natural Language Processing exclude these sorts of sites, so the company can be sure that their ads are presented on the right websites. 

How to start using programmatic advertising?

If you are interested and feel ready to explore how programmatic advertising can work for you, you should consider whether you want to run it in-house or cooperate with experienced advertisers. Both approaches have their advantages, though handling advertising in-house requires having access to significant resources (data, budget, talents) and tools. You can collaborate with an advertising provider, who will analyze your needs, advise you on the best solutions and take care of your campaigns. Don’t hesitate to contact us for more information. 

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