Programmatic advertising is a digital advertising method that uses advanced technology to automate the buying and selling of advertising space. This technology allows businesses to target specific audiences and achieve better results for their advertising campaigns.
In this guide, we will explain what programmatic advertising is, how it works, and how small and local businesses can benefit from it.
What is Programmatic Advertising?
Again, programmatic advertising is a type of digital advertising that automates the process of buying and selling ad space. It involves using software and algorithms to purchase digital advertising space in real-time auctions.
This technology allows advertisers you to target specific audiences and reach them at the right time and on the right platform.
Programmatic advertising uses various targeting methods to reach audiences.
These include demographic targeting, behavioral targeting, contextual targeting, and location targeting. This means that you can target your ads to people based on their age, interests, behavior, and location.
How Programmatic Advertising Works
Programmatic advertising works by using software and algorithms to automate the buying and selling of digital advertising space. The process is as follows:
- You set up an advertising campaign and you choose the targeting options (i.e., demographics, behavior, and location).
- Your ad is then placed on a programmatic advertising platform, which is connected to various ad exchanges.
- When someone from your audience visits a website that is part of the ad exchange, the programmatic platform checks the targeting options [you set] then bids on the ad space in real-time (assuming it met your targeting criteria).
- The highest bidder wins the ad space, and their ad is displayed to the user / website visitor.
- This entire process happens in milliseconds, and you only pay for the ad space if your ad is displayed.
Programmatic advertising can be done through various platforms, including Google Ads, Facebook Ads, and other programmatic ad networks. Each platform has its own targeting options and bidding process, but the overall process is similar.
Benefits of Programmatic Advertising for Small and Local Businesses
Programmatic advertising offers lots of benefits for small and local businesses including:
- Targeted Advertising: Programmatic advertising allows you to target specific audiences based on demographics, behavior, location, and interests. This means that you can reach your ideal customers and avoid wasting advertising dollars on people who are unlikely to be interested in your products or services.
- Real-Time Bidding: Programmatic advertising uses real-time bidding, which means that you can get the best ad space at the lowest cost. This can be particularly beneficial for you, as a small and local business, if you have a limited advertising budget.
- Cost-Effective: Programmatic advertising can be cost-effective, as you only pay for ad space that is displayed to users. This means that you can avoid paying for ad space that does not generate any clicks or conversions.
- Data-Driven: Programmatic advertising is data-driven, which means that you can measure the effectiveness of your campaigns and make data-driven decisions to optimize your advertising strategies.
Tips for Small and Local Businesses Using Programmatic Advertising
If you’re a small or local business looking to use programmatic advertising, here are some tips to get started ASAP:
- Define Your Audience: Before you start your programmatic advertising campaign, define your target audience. This will help you choose the right targeting options and create ads that resonate with your audience and inspire them to take immediate action.
- Choose the Right Platform: There are various programmatic advertising platforms available, including Google Ads, Facebook Ads, and programmatic ad networks. Choose the platform that best suits your business needs and budget.
- Set Your Budget: Programmatic advertising can be cost-effective, but it’s important to set a budget and monitor your spending. Start small and increase your budget as you see results.
- Create Compelling Ads: Create ads that are visually appealing and have a clear call to action. Use high-quality images or videos and compelling copy that speaks to your audience’s pain points and offers a solution.
- Monitor and Optimize: I can’t stress this enough. Monitor your campaign performance regularly and make data-driven decisions to optimize your advertising strategy. Also, don’t be afraid to adjust your targeting options, bids, and ad creative as needed to improve your results.
- Track Your Results: Use tracking tools like Google Analytics to track your campaign performance and measure your ROI. This will help you understand which campaigns are driving the most conversions and adjust your strategy accordingly.
Takeaway
Programmatic advertising can be a powerful tool for your small and local businesses if you’re looking to reach your target audience and achieve better results from your advertising campaigns — and by understanding the basics of programmatic advertising, choosing the right platform, and following best practices, you can create successful campaigns that drive conversions and grow your business.
Ivan is a professional digital marketer and advertiser.
He helps small brands and service providers, marketing managers, and big famous brands run hyper-successful ad campaigns (across multiple formats) targeting lots of diverse audiences (ex.) to meet specific goals like brand awareness, more sales, leads, etc.
He’s got lots of thoughts on the state of marketing and is deeply committed to all areas of optimization—and has no problem showing you where the massive holes are in your own campaigns!
Contact Ivan if you’d like him to take a look at your campaigns.