Three interesting facts about programmatic advertising for you to mull over:

• The programmatic digital display will account for up to 91% of all U.S. digital display ad spend.
• The programmatic video ad spend will be more than double in 2023 from what the ad spend was in 2020.
• For the first time ever, in 2022, the U.S. programmatic digital radio ad spend will cross $1 billion. 

We know what you’re thinking, “If everyone is doing it, so should I. Let’s hire programmatic advertising companions get on with it.”

However, before you do, bear us a moment. Read this article first to know why you should add programmatic advertising to your brand media mix. 

By the time you finish reading this article, you’ll have a fair idea of the advantages of programmatic advertising so you can make the most out of it.

In the next five minutes, learn all about the 5 benefits of adding programmatic advertising to the brand media mix. 

This programmatic advertising 101 guide will discuss:

• How programmatic advertising comes with advanced audience targeting
• How programmatic advertising offers flexible and scalable ad spending
• How programmatic advertising offers massive reach
• How programmatic advertising offers real-time data
• How programmatic advertising offers efficiency from a data-driven approach

 

Note: the information is true at the time of writing. That’s October 2022.

5 benefits of adding programmatic advertising to the brand media mix

Advanced audience targeting

If you’re wondering what are the benefits of programmatic advertising, the feature of advanced audience targeting comes at the top.

Programmatic advertising allows businesses to target hyper-specific audiences. Check out the types of audience targeting you can achieve with programmatic advertising:

• Behavioral: Shopping interests and habits drive this form of programmatic advertising. The method uses cookies, web analytics, and search history, among other factors to determine customers who fit into a certain behavioral profile such as adding an item to the shopping cart and not buying the item. Afterward, brands can create hyper-specific ads for those customers. Thus, brands can reach customers at all stages of the sales funnel with specific messages over attempting to reach all audiences with a generic message. 

• Demographics: Gender, age, cultural background, family status, and occupation – these are all parts of a person’s demographics. Brands collect demographic data mostly through digital apps. The customer gives permission to use this data as per the brand’s data usage policy at the time of installation of the app or at later stages. 

• Location: Geo-targeting makes sure brands can show location-specific ads to the customers who’ll find the ad most relevant, depending on the customer information the brand has. Furthermore, brands can even target specific business addresses and homes with addressable geofencing. 

• Contextual: The contextual targeting method uses data to make sure specific ads show up on relevant sites.   

• Device: Brands can reach users across devices with their ads. The process helps brands to use ads that nurture prospects on an omnichannel basis. Thus, brands won’t have to hope that a single ad will somehow reach all their target audiences. 
• Purchase intent: Brands use multiple types of information such as the customer’s viewing history, search history, how frequently they visit a product page without purchasing, and how long they stay at the page to determine the customer’s purchase intent. The data shows brands whether the customer is on the verge of making a purchase or not. Thus, brands can reach out to the customer with ads as per the specific customer’s needs.     

All you need to do to use the aforementioned features is to select the ones you want to use. The programmatic platform will do the rest.

Flexible and scalable ad spending

Programmatic advertising allows businesses to set the maximum ad budget. Thus, the ads will never cost more than the specified budget the business chose. 

Therefore, no matter whether you have a small to medium-sized business or an enterprise, you can create ads with any marketing budget. 

Here’s an example. Google Ads allows businesses to set average daily budgets for campaigns. Furthermore, the platform analyzes when you should use the budget on a day-to-day basis. The analysis depends on several factors which can impact the campaign ROI. 

Thus, brands can increase or lower their ad budget whenever they see fit. 

Furthermore, you can modify your ads constantly with programmatic advertising. You can test multiple ad copies, ad types, and advertising platforms, among other factors.

Massive reach

Programmatic advertising makes up 72% of all digital display ad spend. The percentage was 61.2% in 2018. 

This is one of the pros of programmatic advertising. 

Millions of websites sell ad spaces for programmatic advertising. Thus, brands receive an opportunity to reach a massively diverse and broad audience. 

Furthermore, programmatic advertising allows brands to promote their products or services on multiple platforms simultaneously. The process helps brands to reach millions of active users on the internet with their ads each passing second. 

The massive reach helps brands in three ways:

• Existing customers see the brand and its products or services continuously. Thus, the brand recall value increases
• More customers recognize the brand
• Both existing and new customers form stronger bonds and experience increased trust in the brand 

Real-time data

Programmatic advertising functions through the application and analysis of data in real time. Thus, brands have access to the information in real-time as well.

Therefore, brands can make decisions in real-time to modify their ad campaigns to maximize profits. 

Check out the specific metrics of an ad that brands can track:

• Which platforms and sites the ad is live on
• The type of audiences viewing and interacting with the ad
• Number of impressions
• Number of clicks
• Number of conversions
• Return on ad spend (ROAS)
• And more

Based on the data, brands can tweak:

• The ad copy
• The ad type
• The targeting options 
• And more

Efficiency from a data-driven approach

Nielsen found in a study that when brands used programmatic advertising for their ad campaigns, the brands experienced an 11% increase in reach efficiency. What it means is for the same impression improvement, brands reached 11% more unique customers.

How? Programmatic advertising allows brands to see and analyze the data in real-time. Thus, brands can make necessary changes and optimize the style and placement of digital ads – among other factors – to maximize ad conversions.

For example, brands might notice video ads are driving more conversion than banner ads. The information will help the brands to tweak the ad type and drive higher conversions.    

Benefits of adding programmatic advertising to the brand media mix

The U.S. programmatic ad spend can reach up to $271 billion in 2025. The number is over $100 billion of what was spent in 2021. Thus, you’d do well to get on the wagon and learn how to use programmatic advertising.  

Now that you know the 5 benefits of adding programmatic advertising to the brand media mix, we hope the knowledge will help you make the most out of programmatic advertising and take your brand to the next level.