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Have you ever entered a public auction or sold real estate? I did it and was very happy. You find the item you want, the auctioneer starts the auction process and you start bidding. Bidding repeats until someone is the highest bidder and takes home the prize.
At a public auction, the auction process can take a few minutes. But in the digital age, bidding can happen in a fraction of a second.
What is Programmatic Advertising?
Programmatic advertising is the process of using technology to automate the buying and selling of online advertising. This is a real-time ad buying process and it is extremely effective.
With advancements in the online ad buying process, small and medium businesses (SMBs) now have access to tools that give them the ability to harness the power of data and apply it effectively. systematic way to increase conversions from online ads.
Small to medium size How are businesses using programmatic advertising?
To help answer that question, Ascend2 and Perfect object took part in a survey and published the findings in a report titled The State of Programmatic Advertising from a Small and Medium Business Perspective . The survey was conducted in June 2020 and a total of 213 marketing professionals from businesses with less than 500 employees participated in the survey.
Here are some notable findings from the research and some practical strategies and tips on how to apply research to influence your marketing programs.
#1: Programmatic ad budgets are growing
Programmatic advertising can stretch ad budgets that are often much more limited than traditional options. Despite the uncertainty in many industries, about two-thirds (65%) of marketers report that programmatic advertising budgets will increase in the coming months.
How Programmatic Budgets Are Changing
Quick Tip from Research: Programmatic advertising is based on real-time bidding, allowing for a more efficient and less expensive ad experience. Given the built-in benefits of programming, it's no surprise that budgets are growing as most marketing budgets are decreasing during the COVID-19 economic crisis.
#2: Start your programmatic advertising with the end in mind
What is the main goal of your programmatic advertising?
For results-driven SMEs, a well-executed programmatic advertising program provides a channel to increase their profits with maximum efficiency. Driving sales and generating leads were the top priorities when implementing an online ad buying program for 57% and 48% of SMB marketers surveyed respectively.
Programmatic advertising goals
Quick Tip from Research: When defining your primary goal, you must define the purpose of your campaign. Campaigns must have a single goal (drive sales, lead generation, brand awareness) and each requires a specific strategy. Each program requires a unique set of ads, landing pages, calls to action, and metrics to measure success.
#3: Programmatic advertising is challenging (but worth it)
Serving the right ads, to the right people, at the right time requires massive amounts of data, tracking, and technology. That's why 46% of SMEs report that audience targeting is a top challenge when it comes to programmatic advertising. Allocating enough budget to execute their strategy was also an obstacle for 37% of those surveyed.
Programmatic advertising challenges
Quick Tip from Research: Track ROI and data to find your best audience to target. Did you know that with Facebook and Google, you can only reach half of your audience?
The programmatic advertising platform will help you reach the other half of your audience. webinar, Retargeting Beyond Facebook and Google which provides more information on how to reach a larger target audience.
#4: Audience targeting is the most effective tactic for programmatic advertising
A strong targeting solution is critical to the success of a programmatic advertising strategy. Audience targeting is considered the most effective tactic for a programmatic advertising program that reaches 72% of the majority of SME marketers. Keyword targeting is also a tactic 40% of those surveyed have had success with.
Quick tip from research: Don't overlook the success of retargeting. The average CTR for retargeting ads is 0.7% compared to 0.007% for display ads. Retargeting is serving ads to customers after they leave your website. It allows you to show visitors relevant ads when they visit other websites.
Here are some benefits of retargeting:
- Brand Enhancement : Four weeks after launching a retargeting campaign, marketers saw an average 1046% increase in searches for branded terms. More than twice as effective as audience targeting without retargeting.
- Improve click-through rates and conversions: Three out of five viewers notice and review ads they previously viewed from another source ( eMarketer ). Retargeting has a 10 times higher click-through rate than a regular ad (Wishpond). Retargeted visitors are also 43 % more likely to convert than non-converters. (Criteo)
- Value for money than other advertising methods : 91% of marketers who have used retargeting find it to perform the same or better than search, email, or display ( IAB )
91% of marketers who have used retargeting find it to perform the same or better than search, email, or display Click to Tweet
#5: Return on Investment (ROI) is the highest Key metric of Programmatic A dvertising Program
Measuring the impact of advertising campaigns is crucial to programmatic strategy optimization. Return on Investment (ROI) and Return on Ad Spend (ROAS) are the most meaningful metrics to track success according to 58% and 36% of marketers working with businesses with a maximum 500 employees.
QUICK CAT from Research: What is the difference between ROI and ROAS? ROAS is a subset of ROI and tells you whether an ad campaign is working. ROI tells you whether your program as a whole or department is profitable. This is video provides more insight into the difference between ROI and ROAS (starting at 2:55 of the video).
This is link to the entire report, The State of Programmatic Advertising from a Small and Medium Business Perspective.
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