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Why Use Programmatic Advertising: An Effective Marketing Strategy

In the vast digital landscape, where every click, view, and engagement matters, advertisers are constantly seeking innovative ways to reach their desired audience.

Enter programmatic advertising – the game-changer that promises targeted precision, real-time optimization, cost-effectiveness, and unparalleled reach.

In an era where success hinges on data-driven decision-making, harnessing the power of programmatic advertising has become an indispensable tool for modern marketers.

Join us as we dive into the world of programmatic advertising and explore the incredible advantages that await those who dare to embrace this transformative technology.

why use programmatic advertising

Programmatic advertising is used for several reasons.

Firstly, it accounts for 90% of display ad spending, making it a dominant approach in the digital advertising landscape.

Secondly, data-driven targeted advertising is proven to be more effective than older digital strategies, delivering personalized experiences that 73% of consumers expect.

Additionally, programmatic advertising offers real-time optimization and A/B testing capabilities, allowing for quick campaign analysis and adjustments.

It is also cost-effective and less susceptible to ad wastage, saving advertisers billions of dollars.

Furthermore, programmatic advertising enables contextual campaigns, increasing relevancy and improving targeting.

As the digital world evolves, programmatic advertising is expected to play a larger role and adapt to changes, making it a valuable tool in modern marketing strategies.

Key Points:

  • Programmatic advertising is responsible for 90% of display ad spending and is a dominant approach in digital advertising.
  • Data-driven targeted advertising is proven to be more effective, delivering personalized experiences that 73% of consumers expect.
  • Programmatic advertising offers real-time optimization and A/B testing capabilities for quick campaign analysis and adjustments.
  • It is cost-effective and reduces ad wastage, saving advertisers billions of dollars.
  • Programmatic advertising enables contextual campaigns, increasing relevancy and improving targeting.
  • Programmatic advertising is expected to play a larger role and adapt to changes, making it a valuable tool in modern marketing strategies.

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💡 Did You Know?

1. Programmatic advertising was first introduced in 1994, but it didn’t gain widespread adoption until the early 2010s, when advances in technology made it more efficient and cost-effective.

2. Did you know that programmatic advertising accounts for nearly 80% of all digital display advertising spending in the United States? Its popularity has soared due to its ability to reach highly targeted audiences and optimize ad placements in real-time.

3. Programmatic advertising has inadvertently helped combat ad fraud. By automating the ad buying process, programmatic platforms have become more effective at identifying and filtering out fraudulent ad impressions, protecting advertisers from wasting their budgets on non-viewable or bot-generated traffic.

4. Although programmatic advertising is most commonly associated with display ads, it can also be used for audio, video, and even out-of-home (OOH) advertising. This versatility allows advertisers to reach consumers across various platforms, devices, and physical locations through a single programmatic campaign.

5. The world’s first programmatic advertising transaction involving a physical billboard took place in 2014, when a billboard in London’s West End was sold and displayed programmatically. This marked a significant milestone in the industry’s evolution, demonstrating the potential for programmatic technology to revolutionize traditional advertising mediums.


1. Programmatic Advertising Accounts For 90% Of Display Ad Spending.

Programmatic advertising has become the dominant force in digital advertising, accounting for a staggering 90% of all display ad spending. Its efficiency and effectiveness are attributed to programmatic platforms that automate ad inventory buying and selling using technology and data. This shift from traditional methods has revolutionized the industry, enabling advertisers to precisely reach their target audience at scale.

Programmatic advertising offers an unprecedented level of sophistication. With algorithms and machine learning, ads can be delivered in real-time to the right person, at the right time, and in the right context. This leads to higher engagement rates and greater ROI. Moreover, programmatic advertising seamlessly integrates with other marketing channels like social media, search, and video, creating a cohesive and synchronized brand experience.

2. Data-Driven Targeted Advertising Is More Successful.

One of the key reasons why programmatic advertising has become the preferred choice for marketers is its ability to leverage data for targeted advertising. In the digital age, consumers expect brands to understand their unique needs and interests. By using data-driven insights, advertisers can create personalized campaigns that resonate with their audience on a deeper level. This level of personalization not only enhances customer satisfaction but also drives better business outcomes.

Recent studies reveal that 73% of consumers expect companies to understand their unique needs and interests. Furthermore, 86% of customers are happy to receive personally tailored offers based on their browsing and purchase history. These statistics underscore the importance of using data to deliver relevant and personalized messaging to consumers. By aligning advertising strategies with consumer preferences, brands can increase engagement, foster loyalty, and drive conversions.

  • Programmatic advertising allows for targeted advertising leveraging data
  • Personalized campaigns resonate on a deeper level with the audience
  • Data-driven insights enhance customer satisfaction
  • 73% of consumers expect brands to understand their needs and interests
  • 86% of customers are happy to receive personalized offers
  • Using data increases engagement, fosters loyalty, and drives conversions.

3. Consumers Expect Companies To Understand Their Needs.

In today’s highly competitive marketplace, consumers have come to expect personalized experiences from the brands they engage with. They want to feel understood and valued as individuals. Programmatic advertising enables companies to meet these expectations by delivering advertisements that are highly relevant and tailored to each consumer’s unique preferences.

By harnessing the power of data and advanced targeting capabilities, programmatic advertising empowers brands to understand and anticipate the needs of their customers. This enables them to create advertising campaigns that resonate on a personal level, inspiring trust and building long-term relationships.

In fact, studies show that 79% of UK consumers prefer seeing ads that are relevant to the web page they’re browsing, highlighting the importance of delivering content that aligns with consumers’ current interests and context.


  • Key points:
  • Consumers expect personalized experiences from brands.
  • Programmatic advertising delivers highly relevant and tailored advertisements.
  • Data and targeting capabilities empower brands to understand customer needs.
  • Advertising campaigns that resonate personally inspire trust and build relationships.
  • 79% of UK consumers prefer relevant ads aligned with their browsing context.

“The importance of delivering content that aligns with consumers’ current interests and context.”

4. Customers Like Tailored Offers Based On Their History.

Consumers today are bombarded with countless advertisements across various platforms, making it increasingly challenging for brands to cut through the noise and capture their attention. However, studies show that customers are more receptive to ads that are personalized and tailored to their specific interests and preferences. This is where programmatic advertising truly shines.

Through programmatic advertising, brands have the ability to leverage data on consumers’ browsing and purchase history to deliver highly targeted and relevant offers. This level of personalization not only improves the consumer experience but also increases the likelihood of conversion. In fact, 86% of customers express happiness in receiving personally tailored offers based on their history.

By utilizing programmatic advertising, brands can ensure that their advertising efforts are not wasted on uninterested or irrelevant audiences. Instead, they can focus their resources on engaging with consumers who are more likely to convert, maximizing their return on investment.

  • Programmatic advertising allows for personalized and tailored advertisements
  • Utilization of data on consumers’ browsing and purchase history
  • Improved consumer experience and increased likelihood of conversion
  • 86% of customers express happiness in receiving personally tailored offers

“Consumers today are bombarded with countless advertisements across various platforms, making it increasingly challenging for brands to cut through the noise and capture their attention.”

5. Real-Time Optimization For Instant Campaign Changes.

Traditionally, the process of optimizing advertising campaigns could be time-consuming and labor-intensive. Marketers would rely on performance reports and insights gathered after a campaign had run its course to identify areas for improvement. This delayed feedback loop often meant missed opportunities and wasted ad spend.

With programmatic advertising, real-time optimization is made possible. The ability to analyze campaigns and make changes almost instantaneously allows marketers to adapt and refine their strategies on the fly. This agility and responsiveness empower advertisers to maximize their campaign performance and achieve their desired outcomes.

Real-time optimization also allows for A/B testing, where different versions of ads or targeting parameters can be simultaneously tested to determine which performs better. This iterative process enables marketers to fine-tune their campaigns, optimize their ad spend, and uncover actionable insights that can inform future strategies.

FAQ

What are the benefits of programmatic approach?

A programmatic approach offers several benefits to project management. Firstly, by grouping related projects together, it allows for better coordination and integration of resources and efforts across the organization. This leads to significant financial savings as duplication of work and resources is minimized. Additionally, by addressing projects based on their type, function, or geography, the programmatic approach reduces the overall risk associated with managing multiple projects simultaneously. It enables the organization to have a comprehensive view of potential risks and take proactive measures to mitigate them. Furthermore, this approach enhances performance by promoting knowledge sharing, best practices, and efficient use of resources across projects within the program. By leveraging similarities and synergies between projects, companies can achieve economies of scale and optimize performance.

What are the 3 key advantages of programmatic StackAdapt?

The first key advantage of programmatic StackAdapt is its emphasis on planning. By providing a platform that is designed to help media teams effectively strategize and outline their campaign goals, StackAdapt enables a more efficient planning process. This allows teams to better allocate their resources and make informed decisions that align with their clients’ objectives.

The second advantage lies in the execution capabilities of programmatic StackAdapt. With its open and flexible DSP, media teams can easily navigate and access a wide range of inventory sources. This means that they have greater control over where and how their ads are served, ensuring maximum reach and relevance to their target audience.

Lastly, programmatic StackAdapt brings a strong advantage in terms of analyzing campaign performance. The platform is equipped with robust analytics and reporting features, enabling media teams to gather valuable insights and measure the effectiveness of their campaigns in real-time. This not only helps teams optimize their strategies but also provides transparency to their clients, fostering trust and accountability.

Why programmatic advertising is the future?

Programmatic advertising is poised to be the future due to its remarkable potential driven by AI and data analytics. The significant growth in the adoption of programmatic advertising is a testament to its effectiveness in delivering personalised ads that generate higher returns on investment for advertisers. With ads bought programmatically already accounting for 84% of global digital advertising spending in 2022, it is anticipated that this trend will continue to soar, reaching an estimated 87% by 2026. This rapid growth signifies the increasing reliance on programmatic advertising as the preferred method for advertisers to reach their target audiences, making it a pivotal part of the advertising landscape in the future.

Why is programmatic better than Google ads?

Programmatic advertising offers several advantages over Google ads. Firstly, programmatic ads provide access to a wider range of ad exchanges and ad networks, including the Google Display Network itself. This means that advertisers can reach a larger audience and have more options for placing their ads. Additionally, programmatic ads can also include native ads, which blend seamlessly into the user experience, resulting in higher engagement and better results.

Furthermore, programmatic advertising eliminates the need for multiple third-party agents as the automation streamlines the ad buying process. This not only reduces overhead costs but also allows advertisers to have more control and transparency over their campaigns. With programmatic ads, advertisers can benefit from the efficiency of automated processes while simultaneously reaching a broader audience and enjoying the flexibility of incorporating native ads.