Over the past year or two, we’ve all seen headline after headline about the rise of artificial intelligence (AI) and machine learning. It seems as though AI has disrupted every facet of our lives, with the popular ChatGPT application serving as just one example.
So what does AI mean for your digital advertising strategy? In short, what it means is that programmatic ad buys are more advanced and more effective than ever before. We’d say they belong in virtually any media mix.
What is Programmatic Advertising?
First things first: When we discuss programmatic advertising, what are we actually talking about?
There are a few different ways to purchase digital ad inventory. The first is to do so manually; this might mean managing bids through an ad exchange, like Google Ads. Another option is to buy directly, negotiating rates to display your ad on a particular platform or publication.
Programmatic ad buying represents a different approach, one that automates the bidding process via AI- and algorithm-enabled processes. In other words, programmatic ad buying is an accelerated process, using machine learning to help streamline communication between advertisers and publishers.
It’s also a more targeted version of ad buying; rather than focusing on the platform where the ad will run, programmatic focuses on the target buyers to whom the ads will be displayed. So, with the programmatic approach, advertisers can use advanced AI to ensure that their strategy is carefully aligned with the consumer profiles they are trying to reach.
What are the Benefits of Programmatic Ad Buying?
We’ve already hinted at just some of the benefits that programmatic brings. Now let’s look a bit more closely at the top reasons to include programmatic ad buying in your media mix.
Increased Effectiveness, Reduced Cost
One way to think about programmatic ad buying: It allows you to do a lot more for a lot less.
On the one hand, ads purchased via the programmatic method tend to be much more effective, precisely because they are more carefully targeted to reach your desired users. With programmatic, you can increase the accuracy with which you display ads only to those who are actually likely to purchase your products or sign up for your services.
At the same time, programmatic advertising tends to be quite a bit less expensive than other methods of ad buying, sometimes costing just a fraction of what you would spend buying ad inventory manually or directly. This combination of high value and low cost makes programmatic advertising a no-brainer for advertisers everywhere.
Enhanced Reach
Because programmatic advertising allows you to do more with less, you can really stretch out your ad budget to reach a larger number of people.
But this is just one of the ways in which programmatic can increase your ad reach. Also, keep in mind that programmatic advertising isn’t specific to a platform, but rather it is specific to a target consumer. And your automated ad delivery may mean that ads are displayed to that consumer across online ad networks, but also connected TV, online video, display and native ads, and beyond.
Simply put, programmatic works wonders for expanding your brand’s reach.
Amazing Targeting Abilities
Compared with other types of ad buying, programmatic offers the most extensive and effective range of targeting options. There are countless ways that programmatic ads can help you filter out unwanted audience members in order to reach your ideal consumers. Some of the targeting options include:
- Behavioral targeting
- Contextual targeting
- Geotargeting
- Retargeting
- Cross-device targeting
With programmatic, you’ll have greater success at zeroing in on the consumers most vital to your brand’s success.
Real-Time Metrics and Adaptability
Still, another advantage to AI-powered advertising is that it provides up-to-the-minute data and analytics, allowing you to instantly appraise the effectiveness of your campaign.
Not only does programmatic ad buying allow you to see what kind of results you’re getting as soon as the campaign is launched, but it also provides you with the opportunity you need to adjust your bidding on the fly, pivoting in response to a particularly fruitful ad placement. This real-time adaptability is a huge boon to advertisers who desire to be nimble, fast, and efficient.
Choose enCOMPASS As Your Programmatic Partner
There are any number of reasons to make programmatic ad buying a part of your media mix. As you consider the merits of programmatic, however, it’s also important to consider getting expert-level strategy and guidance, ensuring your embrace of programmatic ads is as effective as can be.
That’s where we come in. At enCOMPASS, we have ample experience helping advertisers develop comprehensive strategies, including programmatic as well as other types of media. We’d love to talk further. Reach out to our team whenever you’re ready to discuss the benefits of going programmatic.
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