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Programmatic Advertising – What Is It?

Programmatic Advertising

Programmatic advertising almost sounds like something out ot the next century, but in fact it’s been around for quite some time. Simply put, it’s a way to buy and sell online advertising but through automated transactions. This means that, when buying advertising space, it replaces the requirement for human influence, intervention and negotiation.

Q – “Doesn’t this lower the trust levels for companies buying advertising?”

No, in fact it can be quite the opposite. How would you feel if you could reduce cost negotiation time; and rather than obtaining potentially conflicting information or wildly varying quotes from advertisers, that this could be done automatically, using algorithms that base the advertising costs on a wealth of historical data, and relevance of audience targeting? Rather than throwing mud at the wall and seeing what sticks, buyers can simply inform the suppliers what they would like to achieve using their own predetermined KPIs (key performance indicators) and let the programmatic solution do what it does best – to find the most relevant users.

The key differentiator here is that this purchasing of ads is done in real time! … at the moment when a user enters a website. The algorithm knows, through the use of cookies on the user’s browser, whether they’ve recently expressed interest, and have searched for, products or services similar to what your business provides. 

This is just part of the power that programmatic advertising can bring to your business.

 

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 Programmatic

How Can Programmatic Advertising Benefit Your Business?

Suppliers of programmatic advertising often state that you can achieve around 10x the engagement of regular advertising formats. This is achieved through finding people who have been searching for information related to your product or service.

Ultimately, this is all about placing your brand under the noses of people who may be interested in what you have to offer.

If you were to ask a social marketer “What are your biggest goals?” you’d find that 80% of them would list their number one goal as “increasing brand awareness”. After all, if no-one is aware of your company, how can you expect to make sales? People need to become familiar with a brand in order to increase its trust rating in their own minds. Rarely can you make an influx of sales if your trust with buyers is low. A lack of familiarity means people are less likely to remember you, which is why it’s important to be consistent with the frequency of your online advertising.

When developing your marketing strategy, brand awareness should be the first stage. Add a range of people into the funnel, and you can then lead them down the path of brand consideration, with a view to eventually converting website visitors into customers.

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programmatic

What Is “Native Advertising” And Where Does Fit In?

For those among you who haven’t come across this term before, native advertising is a way of creating adverts that complement the look and feel of the website it sits on, in such a way that they don’t feel intrusive – they feel like they belong, thereby increasing the trust capacity from website visitors. Other benefits are that the quality of the website’s user experience is not negatively affected, and it circumnavigates the need for the more intrusive “pop-ups” that can stall the user’s ability to travel through the site.

Native ads can be found in search results, on social media platforms, and on publisher’s websites.

How Do You Start A Programmatic Campaign?

As with anything, you need to understand your market, and one way of doing that is to review terminology associated with this form of advertising. This will help you better understand what you’re signing up to.

You can base your programmatic targeting campaign on several different options;

  1. Context based advertising – think of the industry in which your business operates. If you’re selling women’s fashion, for example, you’ll likely want to be seen in Vanity Fair or Marie Claire.
  2. Keyword based advertising – for the words you are hoping to be found for in Google’s search results, you can use these same words in programmatic advertising; so where an article or blog post mentions a close relation of your search term, your ad will be eligible to show.
  3. Geo-targeting – if you’re business is location-centric, then this is a good option. Algorithms will first look at where the user is physically sat, before using any other information it has based on the likelihood that user would then have to cl ick on your advert.
  4. Retargeting – someone who has visited your website has a cookie dropped on their computer. The then move on to another unrelated site, where your ad is eligible to show. If your website conversion rate is 3%, this form of advertising helps to target the other 97% of people who didn’t!

How Much Does Programmatic Advertising Cost?

Unlike Google Ads where you pay each time your ad is clicked on, Programmatic costs are charged on a cost-per-1000-impressions basis. Impressions are instances when your ad has been seen (not clicked). You might typically see that a thousand impressions costs in the region of 50p to £2, depending on how specific you need your targeting to be. With advertising costs this low, it’s no wonder that programmatic advertising has witnessed year on year increases in demand. And these increases are steep, too – from £102b in 2019, to £127b in 2020, and a projected £147b in 2021. This is further evidence that companies worldwide are seeing tangible benefits, and will continue to invest.

Growthlytics has helped a wide range of companies and industries to push forward with their growth plans, using this method. Contact us now for a free consultation on how we can help you at hello@growthlytics.net

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Project 1

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Project 2

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Project 3

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“Growthlytics strength is in his knowledge and processes of digital tasks – there’s not a question you can ask them that they doesn’t know the answer to. Focused and driven by passion for the industry, they truly are Subject Matter Experts, from whom I’ve learned a lot. First, they gains depth of insight from business owners to determine “What does success look like for you?”, then they create a strategy that best supports the business goals bespoke to that business, to help accelerate growth.
They been in the industry for many years, and covered a wide variety of industries”

Matthew Fowell

MNA Digital (Midland News Association)

 

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