What Is Programmatic Advertising, And How Can It Assist Your Firm?


Puzzle for business marketing solutions


Programmatic Marketing should be one of the most important tools in your company’s arsenal, yet it is one of the least understood marketing strategies.

Programmatic Marketing is the term used to describe the practice of using automated bidding and placement platforms that buy and sell digital ad space in real time.

Ad placement decisions are made based on hyper-specific data, including the age, location, career and specific consumer interests of the target consumers. This enables companies to launch hyper-targeted, highly effective advertising campaigns that generate the highest ROI.

This enables companies to target consumers across the entire bandwidth of the internet. For example, if the algorithm determines that the most effective placement of the ad is on Facebook, it will be placed there. If the algorithm determines that the most effective use of the campaign funds is to direct the ad to a more specialized website that has a high concentration of targeted users, it will be placed there.

When creating a programmatic marketing campaign, the first thing to ask yourself is: what does your brand stand for? Is a disrespectful brand? Is it a reputable brand? It is important to first think about who you would like to be on a higher level. It’s a different form of customer focus. The best strategic approach is to start with a broad audience and then continually revise the campaign as more data becomes available. Continuous iterative optimization is the best way to implement a programmatic marketing strategy and the answer to how you can continuously get better profitability in any marketing campaign. You can be outdone by your competitors, but you should never be “tested”.

One very nuanced factor in programmatic marketing is the sheer amount of tests that you can actually meaningfully perform in any given period of time.

An example of a highly effective programmatic marketing campaign was carried out by digital and print publication The Economist. The Economist aimed to convince readers to try the publication, which covers topics from technology and finance to books and art. A programmatic approach to marketing allowed The Economist to tailor its ads to its different audiences and to create several specialized audiences who received hyper-personalized ads. In total, more than 60 different ad versions or unique personas were created, generating 650,000 new prospects and a 10: 1 ROI.

In classic marketing, the analysis and optimization of campaigns is only established after completion. Programmatic marketing advertising campaigns are updated and optimized in real time.

Every business needs to think about implementing well-executed programmatic marketing campaigns and looking at the best practices, topics and processes and applying them to your business as this will be a uniquely powerful differentiator from the competition.

The concept of branding and programmatic marketing is no longer only found in the direct-to-consumer area.

Programmatic marketing can be especially valuable for B2B advertising campaigns; In many B2C campaigns it is advantageous to address a mass audience, but in the B2B area the target group of key decision-makers is often much smaller / more specialized and is therefore very suitable for a programmatic marketing approach. This type of data-driven targeting is simply not possible with conventional display advertising that is pre-purchased.

Other key benefits of programmatic marketing are:

  • Allow your team to focus on strategy instead of focusing on everyday tasks like creating ad orders.
  • Creates more brand awareness through highly efficient CPMs (cost per 1000 impressions).
  • Optimizes exactly the best targeting when buying media.
  • Reduces ad fraud through machine learning that helps detect fraudulent clicks.

Programmatic Advertising continues to grow and is projected to account for 86.5% of all digital advertising spend in the US by 2021.

Global Programmatic Advertising Spend from 2017 to 2021


This emerging trend is accelerating, and we can likely expect a programmatic approach to television and radio advertising in the near future.

There are also futuristic implications for the natural next step in programmatic marketing that will potentially impact AR / VR environments where companies can insert hyper-specific targeted products or scenarios into a consumer’s virtual environment.

For both B2B and B2B companies, programmatic marketing practices offer immense value. This is a business imperative to invest in world-class programmatic marketing, with the potential to impact any new technology medium and reach new audiences.

Boards can ask management to share the approach to maximizing marketing investments and examining how they anticipate and mitigate risk in order to maximize the effectiveness of every dollar spent on customer acquisition and retention. Contemporary, savvy boards can provide prudent business oversight in the ever-changing AdTech realm. We know that as directors we need to ask management to show us the company’s future business plan, but we also need to make sure our strategy and marketing are in line with current digital marketing strategies.

Perhaps it would be useful for management to brief the board on the use of world-class programmatic marketing techniques at the next strategy meeting!