B2B programmatic advertising is an increasingly popular means for businesses to reach other businesses with targeted advertising messages, using advanced technology and data analysis to deliver more relevant and effective ads. According to recent research by eMarketer and Market Research Future:
- 90% of all digital display ad spend was programmatic in 2022
- The programmatic advertising market will grow at a CAGR of 13.7% between 2020 and 2030.
- In the U.S. alone, 2023 programmatic display ad spend will grow by 16.9%.
The growing market testifies to the fact that programmatic advertising offers advertisers several benefits over traditional advertising methods. It allows advertisers to reach their target audience more precisely, using data and machine learning to optimize ad placement and targeting. It also provides greater control over ad spend, allowing advertisers to set specific goals and budgets for their campaigns.
What is programmatic advertising?
Programmatic advertising is a type of digital advertising that uses software to automate the buying and selling of advertising space to deliver targeted ads to other businesses. Advertisers use a real-time bidding (RTB) process to bid on available ad inventory and the highest bidder gets to place an ad in that space. Advertisers are charged on a per-impression basis when their ad is displayed to a user.
In B2B programmatic advertising, the ads are typically targeted to specific companies or industries based on factors such as job titles, company size and past purchase history, etc. The ads can be displayed on a variety of platforms, including websites, social media and mobile apps.
What are the benefits of programmatic advertising?
Programmatic advertising uses automation, machine learning, algorithms and data to ensure the right ads are delivered to the right users. This provides the following advantages:
Increased efficiency. Automated algorithms and machine learning make the process of buying ad space more efficient and streamlined, reducing costs and increasing effectiveness.
Higher ad engagement and conversions. It allows advertisers to target specific audiences based on demographics, interests and behaviors. This results in more relevant and personalized ads, leading to higher engagement and conversion rates.
Highly scalable. It can be used to target many individuals across multiple channels simultaneously, making it a highly scalable solution for advertisers who need to reach a large audience.
Real-time optimization. It allows advertisers to adjust their strategies based on performance metrics in real-time, ensuring that campaigns are optimized for maximum effectiveness.
Data-driven: Advertisers can use data to optimize their campaigns and make more informed decisions. This results in more effective campaigns and a higher return on investment (ROI).
What types of programmatic ads should a business use?
There are several different types of programmatic ads to choose from. Which one is most appropriate for your brand depends on your specific business needs and goals. By choosing the right type of ad, businesses can create more targeted and effective campaigns that drive results. Different types include:
Display ads are the most common types of programmatic ads, and they appear in a variety of formats including banners, pop-ups and interstitials (ads displayed between user activities). They are usually image-based and can be placed on websites, mobile apps or social media platforms.
Video display ads can be placed on websites, mobile apps or social media platforms and are an effective way to engage audiences with interactive content.
Native ads are designed to blend in with the content around them. They are typically used in social media feeds or on publisher sites to create a more seamless user experience.
Audio ads are like radio ads and are played on streaming services or podcasts. They are typically 15 to 30 seconds long and can be targeted to specific audiences based on their listening habits and demographics.
Programmatic direct allows businesses to buy ad space directly from publishers. This provides more control over ad placement and industry targeting and can be more cost-effective than traditional direct buying.
Retargeting ads are shown to people who have already interacted with your website or ad. They are an effective way to re-engage users who may have abandoned a shopping cart or left your site without converting.
Dynamic ads use real-time data to personalize ads for individual users. For example, a business with an e-commerce site may use dynamic ads to show products that a user has recently viewed or added to their cart.
Over the Top (OOTT) ads are delivered through internet-connected devices, bypassing traditional cable or satellite TV services and typically shown on streaming services and devices, such as Hulu, Roku or Amazon Fire TV.
Connected TV (CTV) ads are shown on internet-connected TVs. They are effective way to reach audiences who are increasingly turning away from traditional TV channels.
Here are some examples of how certain types of ads might help you meet your different business, marketing or campaign goals:
- Brand awareness. Video ads, display ads and native ads can be effective for building brand awareness by reaching a large audience with engaging and visually appealing ads.
- Lead generation. Display ads and native ads can be effective for generating leads by targeting users who have shown interest in similar products or services.
- Customer acquisition. Display ads, native ads and retargeting ads can be effective for acquiring new customers by targeting users who are not yet familiar with your brand or products.
- Customer retention. Retargeting ads and dynamic creative ads can be effective for retaining customers by showing personalized ads to users who have previously interacted with your website or app.
Of course, the most effective programmatic ad types will depend on a variety of factors. It’s important to conduct research and testing to determine which ad types are most effective for reaching your specific business objectives.
How to get started with programmatic advertising
Although it’s an automated process, there’s a lot of planning and know-how that goes into programmatic advertising. If your brand is exploring the benefits of programmatic advertising, here’s how you can get started:
Step 1: Define your objectives
Before you begin using programmatic advertising, you should define your advertising objectives. You should be clear about what you want to achieve with your advertising campaigns, such as increasing brand awareness, driving website traffic or generating leads. This will help you to create more targeted and effective campaigns and identify which key performance indicators (KPIs) will best measure your success.
Step 2: Identify your target audience
You should have a clear understanding of your target audience and their behaviors, interests and demographics. You can get this information by performing market research and analyzing your customer data. This will help you to create more relevant and personalized ads that resonate with your audience.
Step 3: Create high-quality ads
Programmatic advertising is only effective if your ads are high-quality and engaging. You should create visually appealing ads that communicate your message effectively and capture your audience’s attention.
Step 4: Choose the right platform
There are many programmatic advertising platforms available, each with its own strengths and weaknesses. You should research and evaluate different platforms to find the one that aligns with your objectives, industry, target audience and budget. Following are a few of the most well-known platforms to choose from:
- Google Ads
- Meta Ads Manager
- The Trade Desk
- Adobe Advertising Cloud
- Verizon Media DSP
- Amazon DSP
Step 5: Allocate sufficient budget
Programmatic advertising can be expensive, especially if you are targeting a large audience. You should allocate a sufficient budget for your campaigns to ensure that you can reach your target audience effectively.
Step 6: Monitor and optimize your campaigns
Programmatic advertising requires constant monitoring and optimization to ensure that your campaigns are performing effectively. You should regularly analyze your KPIs and adjust your campaigns accordingly to maximize your ROI.
Step 7: Comply with data protection laws
With programmatic advertising, you may be collecting and processing user data. It’s important to be aware of data protection laws such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) and ensure that your campaigns comply with these laws.
How to get results from programmatic advertising
Programmatic advertising is an effective way to serve targeted ads to your audience. And although it’s facilitated by automation, getting results for your business requires expertise and diligence. For this reason, it’s crucial to partner with B2B marketing agency that understands your industry and that is well-versed in the ins and outs of programmatic advertising.
With 20+ years of service to B2B industries like yours, Elevation Marketing has proven experience helping our B2B clients plan and develop programmatic advertising campaigns that resonate with their customers. We thrive on helping companies like yours get extraordinary results. Contact us today to discuss your B2B digital advertising needs.