Programmatic advertising has become a fundamental element of digital marketing, as it allows brands to optimize and target the right audience in real time. Digital advertising now represents 75% of global advertising spending, and programmatic media buying accounts for more than 82% of digital advertising spending. This explains why brands experience an 11% increase in reach efficiency with programmatic advertising. Programmatic advertising offers a variety of benefits, from greater advertising efficiency at a reduced cost to greater reach and audience tracking.
Let's explore the three key advantages of programmatic advertising.
1.Cost-Effective Advertising
One of the main advantages of programmatic advertising is that it is cost-effective. CPM (cost per thousand impressions) is drastically cheaper for programmatic advertising, meaning that you can reach more people with less money. Additionally, programmatic ads increase brand awareness and drive an omnichannel presence, which can help to reduce overall advertising costs.2.Increased Reach and Audience TrackingProgrammatic advertising encompasses channels that go beyond Google or social networks, such as Connected TV (CTV), graphic, native and video ads. This means that brands can reach a wider audience and track their performance more effectively. Key performance indicators (KPIs) are essential for a programmatic campaign, as they measure the success of ads over time.
3.Fair Opportunities for Advertisers and Publishers
Programmatic advertising eliminates the disadvantage of manual media buying and creates fair opportunities for advertisers and publishers.This means that advertisers can access the demand-side platform to view available advertising space, audience segments, offer prices and many other data with the help of the DMP (data management platform). Overall, programmatic advertising offers a variety of benefits to brands, from greater reach and audience tracking to cost-effective advertising opportunities. It is no wonder that programmatic media buying is only expected to increase until 2027.
