The advent of real-time bidding (RTB) technology in the early 2000s allowed advertising agencies and other businesses to be more intentional and targeted with their advertising spending. Since then, real-time bidding tools have evolved to allow new types of digital advertising and even more nuanced audience targeting.
Now, with most businesses relying on AI-driven analytics and automation in some way, programmatic display advertising has emerged as a crucial piece of any RTB-based advertising strategy. In 2023, programmatic ad spending is anticipated to account for 91% of US digital display ad spend, with a bulk of that spend being dedicated to video advertising[1].
To help our readers better understand programmatic display advertising, UpCity has gathered insights from our community of advertising and marketing experts. We asked them about how programmatic display advertising can be useful for small businesses, how to best leverage this tactic, and mistakes that small businesses should steer clear of.
But first, let’s get a quick refresher.
What is programmatic display advertising?
Programmatic display advertising is a focused form of digital advertising that relies heavily on data analytics to guide a company’s automatic bidding strategy for display advertising inventory. Programmatic display advertising happens in real-time and typically takes the form of banner ads in the optimal format and context based on the demographics of the brand’s target audience.
How do advertisers access programmatic display advertising?
Demand-side platforms (DSPs) and ad networks are examples of supply-side advertising platforms that give marketers access to available ad space inventory for display, mobile, and video ad content. Marketers can sort this ad inventory by audience demographics and bid for access to premium ad space.
Why is programmatic display advertising important for small businesses?
The enhanced audience targeting capabilities of programmatic display advertising is especially useful for small businesses in the current economic climate.
Expand your business
With uncertainty looming on the horizon, small businesses should be focused on expanding their customer base, increasing brand awareness, and increasing overall revenue streams. Rather than casting a wide net, programmatic display advertising allows businesses to take a very granular approach.
“Programmatic display advertising is a game-changer for small businesses because it offers targeted, cost-efficient advertising. Instead of casting a wide net and hoping for the best, programmatic lets small businesses zero in on their ideal audience based on specific data. This means their ads are more relevant, potentially leading to better results. In essence, it’s a smarter, more nimble way for small businesses to navigate the vast digital advertising landscape.” —Paul Mai, Marketing Manager, IT GOAT
Increase visibility
Pay-per-click (PPC) and other paid advertising channels are extremely crowded and competitive, making it difficult to truly gain the visibility necessary to attract customer engagement. With 25% of marketers prioritizing first-party data sources, the data-driven analytics that underpin programmatic display advertising can help to ensure a boost in brand awareness and visibility[2].
“It’s harder than ever to get noticed as a small business. Advertising on social channels has skyrocketed and is becoming increasingly less effective. Competition over PPC search terms is increasing while conversions are going down and performance advertising channels just aren’t performing as well. Programmatic display is important and helpful because small businesses can target inventory and ad placements that are highly relevant and drive positive brand awareness.” —Briant Wells, Director of Digital Advertising Operations, CIENCE
An affordable and cost-effective addition to your advertising strategy
Advertising can be a very expensive line item on the balance sheet. With the right tools, the automated bidding process can provide access to extremely well-placed advertising in an affordable marketing channel.
Because it is executed across a number of mediums and in a number of formats, the ROI varies greatly across programmatic advertising campaigns. However, the fact that programmatic advertising in general accounts for 91% of total digital ad spending in the United States, the ROI is lucrative enough that marketers have increased their spending in the channel by 17%—a jump of more than $21 billion in the last year[3].
“Programmatic display advertising is vital for small businesses because it offers cost-effective, precise audience targeting, real-time optimization, and measurable results. It enables access to premium ad inventory, levels the playing field against larger competitors, and provides flexibility for scalability. This data-driven approach helps small businesses maximize their advertising ROI, making it a crucial tool for efficient and competitive digital marketing.” —Lori Newman, Creative Director, Newman Web Solutions Agency
Advice for SMBs just getting started with programmatic display advertising
Despite relying heavily upon automation and AI-driven analytics, programmatic display advertising still requires knowledge of how to configure and manage those systems.
Experiment to discover the best approach for your business
The best approach to creating a well-rounded marketing strategy is to be intentional in how you fold in new marketing channels. Taking an active role in how you execute and manage programmatic marketing campaigns can help you find the right mix of targeted marketing efforts to ensure profitable growth.
“For SMBs new to programmatic advertising, start with a modest budget to gauge effectiveness. Use data analytics, KPIs, and other performance indicators to understand your audience and tailor your ads. Opt for platforms that align with your business’s campaign goals. Consult experts for best practices, be flexible in your strategies, and prioritize quality traffic over volume to set yourself up for long-term success in digital advertising.” —Rene Wells, CEO and Co-Founder, Apus Media Inc.
Testing and experimenting with different types of ads and content can help improve your overall programmatic display advertising, as long as you’re properly focused on presenting a powerful call-to-action.
“If you’re new to this ad model or don’t have a lot of industry visibility because you’re a new company, then it’s important that your CTA should be clearly visible to the audience. Also, your ad content should be catchy enough to grab the attention of the viewer. Test multiple content, as every ad shows different results, don’t go all in at once. Experiment and ensure that the ads are clear, concise and get the work done.” —Ishita Arora, Business Manager, Dexbil International
Consult with experts to incorporate programmatic display advertising
Chances are if you’re not already leveraging programmatic advertising, you can benefit from working with an expert consultant.
“Ensure you are working with an experienced and trustworthy agency–it’s a bit like the Wild West in this space. Work with an agency that has a background and case studies of successes in programmatic advertising. It’s a bit of a complex process, so during the ‘early adoption’ phase, it’s not advised to figure this out on your own–rely on the experts. Also would suggest a trial run of 2-3 months of ads to see if it’s right for you or your services.” —Holly Rollins, CEO, 10X Digital
What are the biggest mistakes for SMBs to avoid when it comes to programmatic display advertising?
As with any marketing strategy, there are common missteps and pitfalls that even the most experienced marketing professionals might run into when executing a programmatic display campaign.
Programmatic advertising isn’t a static campaign
When implementing new marketing strategies, businesses often make the mistake of lapsing on active oversight, which can reduce their effectiveness.
“The biggest mistakes we see SMBs make when diving into programmatic advertising are setting and forgetting the campaign, not working to control frequency, and testing new methods. Don’t trust the platform algorithms to do all the work for you and be sure to test out settings, placements, and types of ads frequently. Don’t be afraid to fail swiftly!” —Chris Whitesell, President, New Path Digital
Be strategic in your programmatic advertising
Successful implementation of your marketing strategy across multiple channels requires significant planning and intent. Folding programmatic display advertising into your existing strategy is no different.
“It’s vital to set distinct goals. Next, not pinpointing your target audience can scatter your efforts. It’s all about precision: reaching the right folks. Also, while it’s tempting to spread ads far and wide, quality and relevance matter more than quantity. Be sure to pay attention to feedback and metrics. The data is there for refining and optimizing. Lastly, don’t shy away from seeking help if things get tricky; there’s no harm in tapping into expertise when needed.” —Domenique Comparetto, Head of Content Strategy, Altered State Productions
Partner with an agency to implement programmatic display advertising
The sheer number of marketing channels available can be daunting in itself, especially for small businesses with limited resources. Partnering with an agency is one of the best avenues available if your team doesn’t have the experience or knowledge to master this new tactic on their own.
“I recommend hiring a professional to set up and manage the campaign(s) for your company. The nuances of targeting, tracking, audience setup, and creative can be overwhelming if you are not familiar with these types of campaigns. Because programmatic advertising is a cost-per-impression (CPM) bid type, you can burn through valuable capital quickly if the campaign is not set up properly.” —Chris Wielinski, Managing Partner, Think Cre8tive
Programmatic Display Ads will help your brand pivot before changes to third-party cookies impact your data analytics
Marketers are concerned about the changes coming down the line in the coming years as legislation and regulatory changes impact access to third-party data. Pivoting to put more focus on programmatic display advertising tactics can help improve your access to first-party data sources, allowing your marketing team to stabilize and insulate your data analytics against those changes.
To better reach more potential customers, it’s important to build programmatic advertising into your overall digital marketing strategy. If your team doesn’t have the experience to effectively manage these types of campaigns, a partnership with an experienced PPC digital marketing agency can fill that gap.
Sources
- Programmatic Advertising Trends, Stats, & News, ROI Revolution
- The State of Programmatic Advertising in 2023, AdMonsters
- Maximizing ROI on Programmatic Advertising Spend, Basis Technologies