What is Programmatic Marketing?

What is Programmatic Marketing?

If you mosey on over to Google and type in that search box: “programmatic marketing,” you are in for a deluge of marketing jargon and artificial intelligence hoopla. So, let us spare you the headache and break down programmatic marketing, why it’s useful, and how we at The Partnership find success with it.

According to Match2One.com, programmatic marketing is “the use of AI and machine learning to buy advertising space in real-time, instead of going through human negotiations and pre-set prices.”

This process is done through something called Real-Time Bidding (RTB) and the transactions between the ad space buyer and seller are completed in the same time it takes to load a webpage. In fact, 90% of programmatic marketing utilizes RTB. The other ways of programmatic marketing are not so much about bidding and rather are a more guaranteed, predetermined agreement between buyer and seller.

What Makes Programmatic Marketing Special?

The Partnership’s account management director, Robert Yanks believes, “The best part about digital advertising and programmatic digital banner advertising, specifically, is that it opens the door for companies of any size to raise awareness. Larger companies used to own traditional advertising channels like TV, radio, and Out-of-Home, but with the introduction of digital advertising, even smaller companies can have some skin in the game.”

So, if your media budget can’t compete with the big players, you still have a chance to get noticed if you’re strategically sound. “With all of the different targeting options for these digital placements, it allows you to be more efficient with your media spending,” said Yanks. “You can make sure you are hitting the right audience at the right time with the right message.”

5 Common Ways to Target

In order to make sure your ads are seen by the “right audience at the right time with the right message” (thanks, Rob), here are five of the most common ways to target:

  1. Contextual Targeting – With Contextual Targeting, ads are shown based on the context of the website. For example, if you’re a fishing brand, you may want to be seen on a popular blog focused on the outdoors where you know you might find an appropriate audience.
  2. Data Targeting – Targeting in terms of data pertains to showing ads based on a user’s cookies. When you visit a website, a cookie is placed on your computer, which means your browsing activity can be recorded by said website. With your browsing being recorded, you can be shown the same ad even though you’ve already moved on to a new website.
  3. Geo-Targeting – Geo-Targeting is about location, location, location. For example, showing ads for In-N-Out Burger wouldn’t make much sense on the east coast of the US. In addition, geo-targeting can make language-specific ads visible to the right audience in the right part of the world. 
  4. Keyword Targeting – Keyword Targeting is all kinds of crucial and can help you serve ads to an audience looking for that one specific word. By creating a list of keywords, your ads can appear on places online that also feature those words.
  5. Re-targeting – Perhaps the most efficient type of targeting is re-targeting. Did you know that 98% of users will visit your website, but then find themselves wandering off to who-knows-where? With re-targeting, those users will see your ad later on as they browse elsewhere. Their attention and interest will ultimately be captured, and they convert to a new customer. This type of targeting makes sure no potential customer will be the one who got away.

Testimonial from The Partnership

In 2019, The Partnership successfully launched a brand-new campaign for Milk On My Mind, utilizing each type of programmatic targeting listed above. We tracked more than 50,000 people into a Kroger location after seeing our programmatic digital ads and saw an increase in the sale of milk, thus meeting our goals for the campaign. In short, programmatic marketing is a great way to activate your marketing strategy by helping you reach your target audience in the right places.

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