From small local businesses to large corporations, anyone looking to reach a targeted audience can benefit from programmatic advertising.
Whether you’re a retail brand looking to target a global audience or a local bakery aiming for nearby customers, programmatic ads ensure efficient spending and a greater return on investment.
With new privacy regulations like CCPA and GDPR shaping the landscape in 2024, it’s also crucial for advertisers to use compliant platforms that offer transparency.
In this blog, Meghan Parsons, SVP of Paid Media at Ignite Visibility, shares her insights on programmatic advertising, a powerful tool that can transform your display campaigns in 2024.
What We’ll Cover:
- What is Programmatic Advertising?
- Who Can Benefit From Programmatic Advertising?
- Common Questions (And Solutions) About Programmatic Advertising
- 3 Examples of Successful Programmatic Ad Campaigns
My Expert Insights on Programmatic Advertising
Display advertising offers a vast landscape of opportunity, but many brands either shy away entirely or struggle to see a real return on their investment. Programmatic advertising essentially automates buying and selling ad space.
One of the key reasons programmatic advertising is crucial now is its ability to deliver highly targeted and personalized ads. We have access to so much data and marketers must use it to create detailed audience segments and then craft messages that invoke action by speaking to demographics, interests, and behaviors.
What is Programmatic Advertising?
Programmatic advertising takes the manual work out of buying display ads. In 2024, advancements in AI have made programmatic advertising even more efficient, providing marketers with unprecedented levels of audience segmentation and personalization.
Programmatic platforms now rely on machine learning to optimize bids and serve ads in real-time, ensuring that ads are shown to the most relevant audiences based on behavior, location, and context.
Here’s a breakdown of key terms to understand how it works:
- Demand-side Platform (DSP): Your control center. As an advertiser, you use a DSP to define your target audience, budget, and bid for ad space on websites and apps.
- Supply-side Platform (SSP): The other side of the coin. Websites and apps use SSPs to sell their ad space to advertisers through programmatic exchanges.
- Ad Exchange: Think of a bustling auction house. Here, DSPs and SSPs connect in real-time, with advertisers bidding for available ad spaces (like website banners or video pre-rolls).
- Ad Space: The virtual real estate where your ad appears. This could be a banner ad, a video pre-roll, or even a sponsored social media post.
- Bid: Your offer to win an ad impression (when someone sees your ad). You set a maximum bid based on your campaign goals and target audience.
While programmatic automates tasks, it’s still complex. A PPC expert acts like your strategic advisor. They have the experience of navigating the nuances of programmatic advertising, ensuring your campaigns reach the right people and deliver the results you deserve. Popular platforms for programmatic advertising include Google Display Network (GDN), The Trade Desk, and Amazon Advertising, and emerging players like MediaMath and Criteo which provide advanced AI-based solutions.
In the video below, SEO Expert, John Lincoln, gives a brief explanation of the difference between programmatic advertising and a DSP. Check it out for further understanding:
Who Can Benefit From Programmatic Advertising?
Programmatic advertising is a fantastic tool for businesses of all sizes, across almost any industry. Whether you’re a local bakery trying to reach new customers in your town, or an established clothing brand looking to expand your online reach, programmatic advertising & corporate video solutions can help you achieve your goals.
With new privacy regulations like CCPA and GDPR shaping the landscape in 2024, it’s also crucial for advertisers to use compliant platforms that offer transparency.
Programmatic advertising works across all stages of the marketing funnel, from the top of the funnel where you’re generating brand awareness, to the middle of the funnel where you’re nurturing leads, to the bottom of the funnel where you’re driving conversions and sales.
Here’s why you might enjoy the benefits of programmatic advertising:
- Efficiency: Imagine skipping the endless calls and emails trying to buy ad space on individual websites. Programmatic advertising automates the entire process, saving time and effort.
- Great Reach: With programmatic advertising, you can target your ideal audience with laser focus, no matter where they spend their time online. Think about reaching people who are interested in hiking boots, right when they’re browsing outdoor gear websites!
- Transparency: Programmatic advertising is all about clear pricing and real-time data. You’ll always know exactly where your ad dollars are going and how your campaigns are performing.
- Clear Measurement: Get detailed reports that track every click, impression, and conversion. This data is like gold for marketers, because it allows you to see what’s working and what’s not, so you can fine-tune your campaigns for maximum impact.
What are the Common Types of Programmatic Ads in 2024?
1. Display Ads: These are traditional banner ads found on websites. They can be static or dynamic and are among the most popular types of programmatic ads.
2. Video Ads: In 2024, programmatic video advertising continues to grow rapidly, especially with the rise of video streaming services and short-form video platforms like TikTok. Brands are using pre-roll, mid-roll, and even shoppable video ads to engage audiences.
Check this funny Burger King example out, courtesy of Venture:
3. Native Ads: Programmatic native ads match the look and feel of the content they appear alongside, providing a seamless experience for users. These ads blend into the platform’s design, making them less intrusive.
4. Audio Ads: With the growing popularity of podcasts and music streaming services, programmatic audio ads have become a key format. Spotify, Pandora, and other platforms allow advertisers to target users based on listening habits and demographics.
Check out the hilarious example below, courtesy of Eskimi, as Lysoform’s ad, “The Last Germ,” cleverly brings to life the 0.01% of bacteria that remain after their disinfectant is used.
5. Connected TV (CTV) Ads: As more people switch from cable to streaming, programmatic CTV ads are an effective way to reach specific audiences on platforms like Hulu, Roku, and Amazon Fire TV. This is especially relevant for brands targeting cord-cutters or younger demographics.
Cost of Programmatic Advertising
Programmatic advertising can be highly cost-effective compared to traditional methods, but the actual costs depend on factors like audience targeting, ad formats, and the level of automation used. In 2024, average costs for programmatic ads vary as follows:
- CPM (Cost per Thousand Impressions): The average CPM for programmatic ads ranges from $1 to $15, depending on the platform and targeting options. However, video ads typically command a higher CPM, often reaching $20–$40.
- Minimum Spend: Some platforms, such as Google Display Network, have no minimum spend requirements, while others, like The Trade Desk, may have a minimum of $500 to $1,000 per month.
What’s crucial in 2024 is optimizing ad spend through real-time bidding (RTB) and using AI-powered tools to adjust bids dynamically based on campaign performance.
Common Questions (And Solutions) About Programmatic Advertising
The advantages of programmatic advertising are vast, but it’s natural to have questions before diving in. Let’s tackle some of the most common concerns and show you how to navigate them like a pro:
1. What if I experience ad fraud?
Did you know that according to Juniper Research, ad fraud is estimated to cost companies a whopping $172 billion by 2028?
But don’t worry, you can avoid ad fraud in a few ways:
- Partner with a Reputable Platform: Just like choosing a reliable bank, pick a programmatic advertising platform with a strong reputation for fraud detection. These platforms use sophisticated technology to sniff out suspicious activity and keep your budget safe.
- Work with a PPC Agency: A skilled PPC agency is like your own personal fraud-fighting squad. They’ll have the expertise to spot red flags and ensure your campaigns are reaching real people.
2. What about bots clicking on my ads?
In 2024, programmatic platforms employ sophisticated AI-based filters to combat non-human traffic, minimizing wasted ad spend. The Trade Desk and Google Display Network offer built-in anti-fraud tools to ensure that bots don’t consume your ad budget.
- Advanced Targeting: Programmatic platforms offer powerful targeting options that go beyond demographics. You can target users based on their online behavior and interests, making it much harder for bots to sneak through.
- Use Filters and Data Analytics: A skilled PPC agency will be familiar with the latest bot-blocking techniques. They can help you set up filters and use data analytics to identify and eliminate any bot traffic that might be inflating your clicks.
3. How will I know where my ads should be placed?
Ever seen an ad for skydiving vacations next to an article about overcoming your fear of heights? Not exactly a recipe for conversions! Programmatic advertising gives you the power to ensure your ads are displayed in the right places:
- Placement Targeting: Choose the websites and apps where your ads will be shown, ensuring they reach a relevant and receptive audience.
- Contextual Targeting: Take things a step further by targeting your ads based on the content of a webpage. This means your dog walking service ad can appear next to articles about dog training tips, not articles about the dangers of leaving pets unattended.
4. How do I protect my brand’s reputation?
Programmatic advertising allows you to safeguard your brand reputation with brand safety tools.
- Brand Safety Tools: Many platforms offer built-in brand safety tools that let you exclude certain types of websites or content categories from displaying your ads.
5. Do I have enough inventory to run programmatic ads?
Programmatic advertising is like a giant digital mall with endless ad space options. But what if you can’t find the perfect stores (websites) to display your products (ads)? Here are some ways to maximize your inventory:
- Flexible Targeting: Be open to expanding your target audience slightly. Instead of targeting dog owners who live in Seattle, consider including dog lovers across the entire state of Washington. This increases the pool of potential websites where your ad can appear.
- Creative Ad Formats: Think beyond the traditional banner ad. Explore video ads, native placements, or even sponsored social media posts. This variety can help you find ad space on a wider range of websites and apps.
6. How do I know if my ads are working?
Imagine planting a garden and never checking on it. That’s what happens if you set up your programmatic campaigns and forget about them. Real-time monitoring is key to success:
- Performance Tracking: Programmatic platforms offer detailed dashboards that track every click, impression, and conversion. This real-time data allows you to see what’s working and what’s not.
- Campaign Optimization: Based on your real-time data, you can fine-tune your campaigns on the fly. Adjust your bids, refine your targeting, or test new ad variations – all to maximize your return on investment (ROI).
7. What if I can’t manage my programmatic ads on my own?
Choosing the right programmatic partner is like picking a travel buddy for your advertising adventure. You want someone reliable, knowledgeable, and always there to support you:
- Transparency is Key: Look for a partner who offers clear and transparent reporting. You should be able to see exactly where your ad dollars are going and how your campaigns are performing.
- Expertise Matters: Choose a partner with a proven track record in programmatic advertising. They should have a team of experts who can answer your questions and guide you through the entire process.
- Ongoing Support: Your programmatic partner should be there for you every step of the way. Look for a company that offers ongoing support, answers your questions promptly, and helps you navigate any challenges that arise.
3 Examples of Successful Programmatic Ad Campaigns
Programmatic advertising isn’t just about showing banner ads on websites! It’s a powerful tool that can be used to reach your target audience across a variety of channels, from smartphones to billboards. Here are a few inspiring examples:
1. From Backpacks to Billboards: How The North Face Conquered the Customer Journey
The North Face likely used a programmatic campaign to target you with relevant ads at every stage of your buying journey. In 2024, they have further enhanced their strategy by integrating real-time weather data into their campaigns, delivering hyper-relevant ads based on local conditions.
For example, users browsing cold-weather gear may receive a North Face ad when checking snow forecasts.
They started with general brand awareness on a travel website, then followed up with product-specific ads as you showed further interest.
2. Programmatic Video Ads Done Right: How Dollar Shave Club Went Viral
Dollar Shave Club wasn’t always a household name. Their 2022 programmatic video ad campaign drove success, and in 2024, they expanded into personalized programmatic advertising with AI-driven creative formats to target niche audiences even more effectively.
The tongue-in-cheek video ad, featuring a no-nonsense approach to men’s razors, targeted the right audience using programmatic tools. This resulted in millions of views and a massive boost in brand awareness. The campaign’s success proves that programmatic advertising isn’t just about efficiency, it can also be a launchpad for creative and engaging video content.
3. Reaching Specific Demographics: How M&Ms Targeted Streaming Services
Traditionally, TV advertising has been a one-size-fits-all approach. But with programmatic advertising, things are changing.
M&M’s, the colorful candy giant, wanted to reach a younger audience who might be ditching cable for streaming services. Their programmatic campaign allowed them to target specific demographics on streaming platforms, ensuring their ads reached the exact viewers they wanted.
In 2024, they expanded this strategy to target specific niche demographics using streaming platforms like Hulu, Amazon Prime, and YouTube. Their ads appeared during moments when their target audience was most engaged, such as during live-streamed sports events.
New 2024 Stats and Studies
- AI Integration: A 2024 study by eMarketer revealed that 85% of programmatic advertising campaigns now use AI for audience targeting and bidding optimizations, showing a significant increase from 60% in 2021.
- Programmatic Growth: In 2024, programmatic advertising is expected to account for 91% of all digital display ad spend in the US, according to a recent IAB study, up from 84.5% in 2022.
- CTV Explosion: As of 2024, spending on Connected TV (CTV) ads is expected to grow by 23%, making it one of the fastest-growing programmatic ad formats.
Power Up Your Marketing with Ignite Visibility
In 2024, programmatic advertising continues to evolve with AI integration and heightened privacy considerations.
By leveraging data-driven automation, it’s possible to deliver highly personalized ads across a variety of digital channels.
The increased use of AI, the rise of CTV ads, and stricter privacy laws mean that brands need to be more strategic than ever in their approach. Whether you’re a small business or a global brand, 2024 presents exciting opportunities to refine your programmatic strategy.
Now that you have a better understanding of programmatic advertising and why it works so well, it’s time to get started with an effective paid media campaign.
Ignite Visibility can help you:
- Reach your target audience with the right message at the right time
- Monitor your campaigns in real-time to fine-tune them
- Develop various ad formats including static and video
- And more
Get started with programmatic advertising today! Reach out for more details.
