What Is Programmatic Advertising & How Does It Work?
Programmatic advertising can be very confusing to someone that is new to the term. What it is referring to, is the automated bidding process in which your ads are shown across multiple platforms that offer advertisers a place to show their ads. These platforms include various apps, blogs, and websites across the internet. These various platforms that are available combined with the pay per thousand impressions model (CPM - Cost Per Mille), makes programmatic advertising great for brand awareness and exposure to a specific target audience. There are 3 main components when it comes to programmatic advertising, with each of them being a crucial role in running a successful programmatic advertising campaign. These 3 components are Geofencing, Initial Targeting, and Retargeting. In this blog we will review what each of these components are and how you can successfully implement them.
What is Geofencing?
Geofencing is when you use a program that uses GPS data to draw an imaginary line around a desired location. So what would be the purpose of drawing an invisible fence around an area? Well you can set it up so anyone who crosses that invisible fence, is then able to receive your ads on their phones. This can be extremely beneficial for companies, especially if they already know their target audience and where they frequent. Geofencing is the foundation of a programmatic ads campaign, and it really determines how well your campaign will perform. I always tell my clients that when it comes to programmatic ads, I am only a digital marketing specialist, and they are specialists in their fields. Having this understanding allows us to collaborate using our combined knowledge and experience to create an effective campaign.
What is the best way to target using geofencing?
One of the common areas for our clients to target are their direct competitors. So if I run a local chicken restaurant, I could target all the other chicken restaurants in the area, since I know that my audience (Chicken Lovers) will be at those locations. Another great strategy used for geofencing, is to target event locations. Many host companies attend trade shows, charity events, and golf outings, so it is beneficial to get their ads in front of those audience members, because you will also be able to retarget their phones to run ads for up to 90 days after. There are some other ways to strategize your targeting of geofences, but the other main strategy I have seen clients go with is targeting areas/businesses that are complimentary to theirs. So for example, a company trying to promote their safety protocol services to factories can target factories and similar processing places that often need services like those for insurance reasons. There are some restrictions on places you can and can’t target however, but overall the options are pretty limitless in terms of targeting capabilities.
What is initial targeting for programmatic ads?
The second component of programmatic advertising is initial targeting. This is the stage where you first capture an audience's data, in order to be able to show ads to them. Generally, these are set up to deliver ads to their phones in real time, while they are at the targeted location. So what if the targeted location is a place that people aren’t generally on their phones? This isn’t a worry, because the main purpose of the initial targeting is to capture the unique identifier for their mobile devices, so we can retarget them at a later date. Part of the initial targeting phase is to set up the retargeting audience, so you can show your ads to them multiple times. This also ensures that the individuals at your initially targeted locations still see your advertisements, even if they didn’t see them while they were there.
What is retargeting for programmatic advertising?
Did you know that according to “The Rule of 7,” that it takes about 7 times on average for a customer to encounter a brand before they make a purchasing decision? That is why the retargeting component of programmatic advertising is so important. This also ensures that the individuals at your initially targeted locations will continuously see your advertisements, even if they didn’t see them while they were at the initial location. Retargeting allows you to show your ads to the initial targeting audience for up to 90 days, which gets reset every time the audience is shown your ads. So theoretically, if you had an event at the beginning of the year, as long as you ran $100 or so towards the retargeting audience before the 90 days is up, the retargeting timeline would reset back to day 1 of 90. This is a strategy we have had clients use in the past to sell tickets to the same audience that has previously attended some of their events in the past.
Summary:
In this blog, we reviewed the 3 main components that make up a programmatic ads campaign which were geofencing, initial targeting, and retargeting. Now I can see how some of this may be confusing to someone that isn’t in the digital marketing field. However, if you are a potential client, rest assured that I will take care of all the backend work and the only thing you are responsible for is helping to collaborate on the strategy of reaching your target audience.
Syrios Solutions is now partnering with a service that gives you the contact and demographic information of every person that lands on your website. Combine this service with a Google Ads or Programmatic ads campaign, and you can increase your likelihood of customers converting by creating another touchpoint! Fill out the contact form on our website to learn more about programmatic advertising and how it can help achieve your business goals! If you would like to speak to the author of this blog, Logan Syrios, reach out using the links below!
Email: logan@syriossolutions.com
Phone: (330) 203 -1577
Website: https://www.syriossolutions.com/contact
LinkedIn: https://www.linkedin.com/in/logan-syrios-263a0a195/
Instagram: https://www.instagram.com/syriossolutions/?hl=en
