Top 5 Advantages of Programmatic Advertising

Programmatic advertising is a process of automatically buying and selling the ad inventory in a real-time via automated bidding platform. It enables brands and agencies to purchase ad impressions within milliseconds using the ad exchanges.  

In addition to the efficiency brought in by the programmatic advertising by reducing the human intervention and AI driven algorithms, here are five advantages.

Real time Insights: In traditional advertising, there was a challenge in receiving the ad campaign performance report and there wasn’t any method of knowing the accuracy of the report. It is giving an opportunity to the advertisers to review the real-time information of ad campaign performance. The advertisers can utilize the data to gather more information about their targeted audience and ad campaigns.

Enhanced Targeted Capabilities: There two ways to connect with the targeted audience in programmatic advertising. i.e.,

First Approach – There is an option to combine first and third party data to improve the audience profile and reach out to them to promote the product and services.

Second Approach – It relates to contextual advertising. Contextual programmatic advertising drives data from both user profiles and page content to deliver ads. It will ensure to deliver the ads on most appropriate web pages to the product and service.

Advertisers can use remarketing, geo-targeting, data and IP address targeting, and website or app targeting to drive refined approach of campaign targeting. These improved capabilities provided more opportunities to the advertisers to personalize their ads.  

Greater Transparency: This is one of the major advantage that programmatic advertising is offering the to the advertisers. The advertisers can review where their ads are serving, how their targeted audiences are interacting with the ads, how their ad budget is spending, and optimize the ad performance in real time to effectively utilize their budget.

Better Utilization of Budget: It is providing a real time performance reporting, the advertisers can invest their budget on the top performing campaigns to get the best result. They can also reduce or stop the ad campaigns which are not yielding the ROI to optimize their ad budget effectively.

Manage Ad Frauds Effectively: There are many unethical practices that publishers may follow in order to meet the advertiser campaign goals. However, the programmatic advertising is providing a greater visibility where the ad is serving to tackle the ad frauds. Majority of the programmatic advertising platforms also block the ad frauds by blocking fake bot traffic and provide ad credits to reduce the advertiser revenue loss.

Here’s an article to know more about what is programmatic advertising and how does it works

Conclusion: There are plenty of advantages of using the programmatic advertising compared to traditional online advertising in the current online advertising era. However, these advantages may not support all the products and services that advertising is promoting. The advertisers may need to wisely evaluate all the advantages before setting up the ad campaigns on the programmatic advertising platforms.