Advertising and marketing are an important ladder for any business, product, and service. With time it has become one of the most critical aspects of business and its growth. It has made its unique position adhering to the impact it can create on the audience or consumers. But old traditional methods were labor-intensive, time-consuming, and lengthy.
The process of proposals, negotiations, tenders, and much more. All this was hectic, annoying, and would require a lot of human effort. But since change is the only constant thing so how come this could last for long? To curb this problem of traditional advertising here enters Programmatic advertising.
Programmatic advertising is the use of technology and algorithms to sell and purchase digital ads. Now we can easily directly sell, buy digitals ads without human negotiation and do the same with precision and efficiency. Programmatic advertising has catered to various problems such as the selection of the right publisher; according to the targeted audience, knowing consumers, their choices, time consumption, and much more. It has gained publicity because it has the potential to solve huge problems in the path of advertising.
It uses an automated process to purchase digital ad inventory within advertiser-defined parameters. Its reach is across the web, mobile, apps, video, and social media. It can provide access to a much larger audience and according to the specific type of business.
It also takes a look into users' activity, their interests and shows ads accordingly. This method allows businesses to understand their target market, audience, and to have a better understanding of their market segment. In the long run, it helps to build a strong customer base, proper strategies, investment to improve the market value.
In fact, according to a recent figure by eMarketer, US digital display advertisers will invest nearly $96 billion in programmatic advertising by 2022. This figure explains a lot about the potential of programmatic advertising and the impact it's been creating.
Benefits –
Increased ad efficiency –
It is a data-driven process so stats, algorithms provide a better view of customers and lead to better decisions. It increases and efficiency as it is built with better stats, and targets the right audience so it can be more effective.
Cost-effective –
The investment is paid off well in programmatic advertising. Since its target is highly optimized and is maintained to reach the right audience. So, even small investments can bring better results.
Better audience reach –
Programmatic advertising targets audiences according to their demographics, the content they see, share, and their online activity. All this data provides a better view of which type of product, the brand will suit a customer. Hence, programmatic advertising uses this well and has greater access to an audience.
Small websites can also benefit –
The websites which have no particular sales team can be highly benefitted by programmatic advertising. According to their audience reach the right brand, the product will reach and they can share their digital space with them and earn through it.
Better insights of customers –
The real customer insights are necessary to understand their choices, taste, and needs. And presenting them the same increases the chances the customers will show engagement into our work, brands. It overall improves the market value of the brand, product, and business.
Disadvantages –
Online traffic fraud –
We all are aware of online fraud and how it exploits businesses, customers. So, with this automated process, the risk for online traffic fraud also increases.
Lack of human control –
It is a data-driven, automated process and technology plays an important role in its smooth control. But what if the agency in itself has inexperienced staff, and ads appearing are of low-inventory and improper; then it won't lead to better results.
What's in the future?
But apart from its pros and cons, programmatic advertising has built its strong position in the market. It has a robust structure aided by AI, technology and algorithms to reach its highest potential. The future of advertising will be dominated by programmatic advertising if it goes on impacting this way.
The data-driven marketing process collects and checks on users' choices, demographics, online content, and much more. Accordingly, they target their audience and hence lead to better reach.
With the changing time, online marketing, shopping has dominated the market which has led to a major boost in the online platform. In this situation, programmatic advertising serves with all necessary inputs to target audience, communicate about brands, understand consumers, and bring a satisfactory product, brand to them.
This scenario can keep programmatic advertising at the top and always high in demand. The future of programmatic advertising is bright and advertisers can invest in this by carefully looking for the right publishers for their product or business.