The Top 5 Benefits of Programmatic Advertising

Gone are the days of endless negotiations and manual ad placements. Programmatic advertising has revolutionized digital marketing by automating the purchase, placement, and optimization of ad space in real-time. Today's advertisers have embraced programmatic technology as a key tactic to reach their target audience and maximize return on investment (ROI). But what are the benefits of programmatic advertising, and how can businesses unlock their potential? Let's explore. Learn More: 53+ Key Performance Indicators (KPIs) for Cannabis Dispensaries 

1. Increased Efficiency in Programmatic Advertising

Traditional advertising campaigns often suffer from inefficiencies like broad targeting, high costs, limited reach, and difficulty tracking campaign performance. Programmatic advertising solves these issues by enabling data-driven audience targeting, automating the buying process to reduce costs, expanding audience reach through thousands of publishers, and providing real-time analytics for better campaign optimization and performance measurement.

Automated Media Buying

The way ads are bought has drastically changed over the last 15 years. Automation now drives programmatic advertising. Unlike the old ad buying methods, which involved significant manual work, programmatic advertising leverages advanced algorithms to seamlessly connect platforms that purchase ads (Demand-Side Platforms/DSPs) with those that sell them (Supply-Side Platforms/SSPs) in real-time.

Platforms like Google DV360 and The Trade Desk are popular DSPs, providing automated tools for buying ad space and targeting the right audience. These two platforms are ideal for most businesses. However, industries like cannabis, alcohol, and gaming might need to find different platforms more suited to their specific compliance needs. 

For regulated industries, MediaJel offers a compliant all-in-one platform: MediaJel Platform

Real-Time Bidding (RTB): Flexibility and Speed in Ad Campaigns

Milliseconds matter. Real-time bidding doesn't just save time—it also maximizes the effectiveness of every ad dollar. With RTB, each ad impression is evaluated and purchased in milliseconds. That's speed and flexibility that traditional buying methods can't match. An adaptive and responsive advertising approach keeps campaigns relevant and targeted to those most interested in your products, leading to better engagement and bigger cost savings.

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2. Advanced Targeting Capabilities of Programmatic Advertising

Leveraging big data leads to bigger results. Programmatic advertising enhances targeting by using first-party (your own data) and third-party (external data) insights to precisely identify and reach audiences at the right moment with the right message. Advertisers who know the benefits of programmatic display advertising can find greater efficiencies by combining data-driven insights, automation, and personalization to optimize campaign performance

Precision Targeting: Reaching the Right Audience

Targeting the right audience at the right time can triple engagement. Programmatic advertising makes that possible by revealing your audience's life stages, interests, and needs. Say you’re targeting new moms who are struggling with sleepless nights; by analyzing behavioral, demographic, and contextual data, you can reach them during those early morning hours when they’re scrolling for solutions. A CBD gummy ad that hints towards a more restful sleep at 2 a.m.? That’s meeting them at their precise need state.

Audience targeting strategies should go beyond broad demographics and tap into real-life contexts. When your brand aligns with their specific need states, like sleep aid for new moms or recovery solutions for fitness enthusiasts, your message shows up meaningfully at the exact moment they’re looking for it. This data-backed, contextual approach allows you to hit the “money spot.” Right product, right person, right time. 

Improved Audience Segmentation for Better Engagement

Targeting everyone gets you nowhere—programmatic advertising makes sure each customer receives a message crafted specifically for them. By leveraging customer data, programmatic platforms empower marketers to visualize audience insights, determine which strategies to pursue, and break down broad groups into highly relevant segments. There are 8 customer targeting approaches to consider in audience segmentation: 
Demographic: Target by income, gender, age, and family status.

Geographic: Use location and past visit data for targeting.

Contextual: Match ads with relevant content categories using AI.

Behavioral: Focus on past purchases and user interests.

Conquesting: Target users who engage with competitor brands.

Lookalike: Find new audiences similar to existing customers.

Retargeting: Re-engage visitors to specific pages and cart abandoners.

Retention: Target based on purchase history and customer loyalty.

Each targeting approach aligns with a segmentation strategy that enables you to divide your audience and address their specific needs at any moment. Cannabis companies that can invest in a comprehensive range of strategies typically see the most significant benefits. However, you can still achieve remarkable results by carefully choosing the right strategies for your target audiences. This is where expert assistance becomes invaluable, helping you refine your approach for optimal impact.

Data-Driven Decision Making: Optimizing Ad Campaigns

Your ad spend can work harder for you. Data analysis is the blueprint for optimizing your programmatic campaigns. Data platforms like Google Analytics, Adobe Analytics, MediaJel's Marketing Platform help advertisers track and measure key metrics. The best part is that platforms have gotten really good at visualizing data.  They deliver clear insights into which tactics are working and which aren't.

3. Increased Reach and Scale Through Programmatic Strategies

You can instantly reach millions of potential customers when you activate data-driven strategies. Programmatic advertising enables marketers to access large networks of digital inventory across different channels, such as websites, apps, CTV, DOOH, mobile and other connected devices, which significantly expands the potential reach of your campaigns.

Global Audience Access: Expanding Your Reach

Ready to unlock the entire globe? One of the most compelling benefits of programmatic advertising is its ability to connect brands with people in different countries. Using multi-channel programmatic buying, advertisers can serve ads on digital platforms to reach international audiences. Connecting with a diverse audience across borders is a powerful tool for scaling campaigns globally.

Scalability of Campaigns: Adapting to Market Demands

The market changes fast—programmatic scales your campaign faster than traditional ads ever could. With the ability to easily increase or decrease campaign budget, audiences, inventory, and geos based on performance metrics, advertisers can adapt to market demands with a few mouse clicks. Marketers can efficiently optimize reach by testing and scaling successful ad sets while keeping costs under control.

Programmatic Performance Metrics

Programmatic advertising delivers detailed reporting and analytics that allow marketers to evaluate campaign performance through key metrics such as impressions, click-through rates, walk-ins, transactions, sign-ups, and ROAS. Comprehensive reporting capabilities enable marketers to make more data-driven decisions, ensuring efficient budget allocation and improved campaign outcomes.

5. Brand Safety Measures: Protecting Your Brand

The brand environment, which includes the website or article on which an ad appears and ads that appear next to yours, influences consumer perception and behavior. When consumers encounter a brand's ads in a positive and relevant context, they build trust, and customers are more likely to feel positively toward the brand. 

Conversely, if ads appear alongside inappropriate or harmful content, it can lead to negative associations, damaging the brand's reputation and alienating potential customers. That’s why one of the programmatic advertising benefits is that on most platforms, administrators can implement allow-lists and black-lists or leverage brand safety tools like Integral Ad Science (IAS)  or DoubleVerify to safeguard this environment.

Time to Focus on Strategy and Put Your Ad Buying on Auto-Pilot!

Programmatic advertising is faster because it uses automation, so ads are bought and placed in seconds instead of taking days or weeks. It’s cheaper because it cuts out the middleman and ensures your ad reaches the right people, reducing wasted spending. It’s more effective because it can quickly adjust to changes in real-time, showing ads to the most relevant audience based on their behavior, which leads to better results.

So when you ask you’re self, “What are the benefits of programmatic advertising?” we want you to think of increased efficiency, advanced targeting, greater transparency, and scalability. Programmatic campaigns can offer a level of precision and responsiveness to marketers that are wholly unmatched by traditional advertising methods.

Ready to unlock the benefits of programmatic advertising for your brand? Start exploring how MediaJel's Self-Service Platform and Strategic Agency support can help you identify, reach, engage, and convert your ideal customers at scale. 

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