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What is Programmatic Display Advertising?

A marketing tactic that's been gaining significant traction in recent years is programmatic display advertising. 

But what exactly is programmatic display advertising, and how can digital marketing agencies harness its power to drive success for their clients? We’ll delve into the intricacies of programmatic display advertising and shed light on why it's become a cornerstone of modern digital advertising strategies.

Understanding Programmatic Display Advertising

Programmatic display advertising specifically refers to one specific type of format that is used – the display ad. Unlike traditional ad buying, which involves manual negotiations and purchases, programmatic advertising streamlines the process, enabling advertisers to reach their target audiences more efficiently and effectively.

How Does Programmatic Display Advertising Work?

Programmatic display advertising automates ad buying and optimization through real-time auctions. It begins with data collection to create audience segments. Advertisers bid on ad space in auctions triggered when users visit sites. Ad serving and optimization follow, adjusting targeting and creatives based on real-time performance metrics for maximum effectiveness.

Data Collection and Audience Segmentation

Programmatic display advertising begins with the collection of data from various sources, including website visitors, third-party data providers, and user interactions. This data is then analyzed to create detailed audience segments based on factors such as demographics, interests, browsing behavior, and purchase history.

Real-Time Bidding (RTB)

When a user visits a website or app that serves programmatic ads, an auction is triggered in real time for available ad space. Advertisers bid on this ad space based on their campaign goals and target audience parameters. The highest bidder wins the auction, and their ad is displayed to the user.

Ad Serving and Optimization 

Once the ad is served, its performance is continuously monitored and optimized in real time. Metrics such as click-through rates (CTR), conversions, and engagement are tracked to determine the effectiveness of the campaign. Advertisers can adjust their targeting criteria, ad creatives, and bidding strategies on the fly to maximize ROI and achieve their campaign objectives.

An Example of Programmatic Display Advertising

Let’s take a look at an example of how programmatic display advertising helps companies expand their reach in real time. 

Lowe’s approached Klever Programmatic with a specific goal: to utilize the potential of programmatic advertising in driving both online sales and foot traffic to select Lowe’s Hardware locations. 

By utilizing programmatic advertising, we effectively increased online sales, drove significant foot traffic to Lowe's locations, and exceeded the targeted benchmarks for click-through rates. Our strategic approach and data-driven targeting ensured the right message reached the right audience, resulting in a confirmed boost in visits and associated sales for Lowe's.

View the Lowe’s Case Study

Key Benefits of Programmatic Display Advertising for Digital Marketing Agencies

From enhanced targeting capabilities to real-time optimization, programmatic advertising empowers agencies to deliver impactful campaigns that drive tangible results for their clients. With automation streamlining the ad buying process and data-driven insights guiding decision-making, agencies can maximize efficiency and ROI like never before. The invaluable scalability and transparency of programmatic advertising provide agencies with the tools they need to thrive in a competitive landscape. 

Enhanced Targeting Capabilities

Programmatic display advertising offers unparalleled targeting capabilities, allowing agencies to reach particular audiences with precision. By leveraging data-driven insights, agencies can tailor their campaigns to target users based on demographics, interests, online behavior, and more, resulting in higher engagement and conversion rates.

Improved Efficiency and Cost-Effectiveness

By automating the ad buying process, programmatic display advertising saves digital marketing agencies time and resources. Manual tasks such as negotiating ad placements and managing multiple campaigns are streamlined, freeing valuable time for strategic planning and campaign optimization. Additionally, the ability to set budget caps and bid strategically ensures that agencies get the most out of their clients' advertising budgets, maximizing ROI and minimizing wasted spend.

Real-Time Insights and Optimization

One of the most significant advantages of programmatic display advertising is its ability to provide real-time insights into campaign performance. Digital marketing agencies can access comprehensive analytics dashboards that offer insights into key metrics such as ad impressions, clicks, conversions, and more. This data allows agencies to make data-driven decisions and optimize campaigns on the fly, ensuring that they deliver the best possible results for their clients.

Scale and Reach

Programmatic display advertising enables digital marketing agencies to reach audiences at scale across a wide range of platforms and devices. Whether it's desktop, mobile, social media, or connected TV, programmatic technology ensures that agencies can connect with their target audiences wherever they are online. This scalability enables agencies to expand their reach, drive brand awareness, and attract new customers for their clients.

Increased Transparency and Control

With programmatic display advertising, digital marketing agencies have greater transparency and control over their campaigns. Advertisers have access to detailed reporting and analytics, allowing them to track the performance of their campaigns in real time. Additionally, programmatic platforms offer advanced targeting and optimization tools that empower agencies to fine-tune their campaigns for maximum effectiveness.

Key Takeaways

Programmatic display advertising represents a significant evolution in digital advertising, offering digital marketing agencies unparalleled targeting capabilities, efficiency, and scalability. By leveraging automated technology and data-driven insights, agencies can create highly targeted campaigns that deliver real results for their clients. Embracing programmatic display advertising is not just a competitive advantage; it's essential for agencies looking to stay ahead in today's rapidly evolving digital landscape. 

So, to all the digital marketing agencies out there, it's time to unlock the full potential of programmatic display advertising and elevate your campaigns to new heights! Get in touch with our team about the Klever approach.

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