Programmatic marketing is a commonly used term for digital advertising that can be one of the most effective weapons in your company’s arsenal. Although the technique is most prevalent in digital advertising, it has broader applications by automating marketing activities. However, the lack of proper awareness and understanding often deter companies from integrating the tool with the overall marketing strategies.
How Programmatic Marketing Works in Digital Advertising?
Programmatic marketing allows the repurposing and reassembling of deliverables to meet the demands of specific audiences and platforms, including programmatic advertising. Digital advertising is a highly dynamic space that will enable marketers to hold an auction whenever a website loads through established automated processes. Before loading content on the platform, an algorithm triggers an instant auction to determine which company is the highest bidder for the advertising space. The algorithm compares data from the web browser against pre-set values determined by the bidding companies. The company that wins the bid qualifies to display its content. The fantastic technology completes the complex auction process auction within a few milliseconds.
The process described above should answer the oft-asked question – what is programmatic marketing?
Targeting Consumers for Higher ROI
The online real-time auction process is highly beneficial for the participating companies as it helps to better customer targeting. The algorithm uses hyper-specific data like the age of consumers, career, location, specific interests, tastes, etc. Consequently, companies can launch consumer-specific targeted marketing campaigns through effective programmatic display ads that strike the right chords and resonate with the audience.
The auction algorithm helps companies occupy the top spots that draw maximum attention and point to the most suitable platform for launching the campaign. For example, based on the data analyzed by the algorithm, it might point out that Instagram would be the platform is the chosen programmatic marketing platform for launching the campaign.
Put your Money in the right places
It is like winning half the battle for companies that win a bid in the online auction, as they are ahead in the race to create higher engagement. Having the opportunity to interact with consumers, companies must leverage their ads on the platforms where they can find a high concentration of users they want to target. The beauty of programmatic display ads is that they ensure companies spend their money correctly. Therefore, the return on investment is higher.
Customize the Ads
With assistance from programmatic marketing, companies can sharpen their marketing campaigns by knowing the audience better and approaching them in the most effective ways. Instead of taking a one-size-fits-all approach, companies can identify various customer groups for creating different types of ads that hold high appeal.
The customer engagement rate increases many more times, enhancing trust in the brand.
