Importance of Programmatic Advertising for Marketers

Businesses are looking toward a new method of advertising these days. Automated buying of online ad space is done in real-time, known as programmatic advertising. The world of programmatic advertising for marketers is becoming more essential in this digital age.


Marketers may want to know what is programmatic advertising, and why is it so important. This type of advertising is paving the way to use data so you can more effectively and quickly reach the right people at the right time. Ultimately, you can utilize it for your business to get better results at a faster pace.

In the United States, programmatic ad spending has dramatically increased by 12% just this year. Programmatic advertising is changing the way that traditional advertising worked in the past.

This article will discuss how the importance of programmatic advertising for marketers can help benefit your brand and keep up with the evolving digital marketplace.

What Is Programmatic Advertising?

Before jumping into its importance, marketers need to understand what programmatic advertising is and what it can do for their business. It’s a software solution that allows you to buy ad space on an automatic platform. It cuts out the middleman and makes the process of getting targeted space that pertains to your audience much more efficient.

Marketing agencies and businesses dedicated teams for programmatic buying. There are examples of great programmatic ads of different types that you can look into and instill within your marketing teams:

  • Private Marketplace (PMP): Exclusive marketplaces that give access to specific buyers from ad inventory that is restricted or specialized. The primary purpose of a PMP is to control where ads are run.
  • Open Marketplace/Real-Time Bidding (RTB): real-time bidding can refer to automated or transactional buying of ad space. It is sometimes referred to as an Open Auction, and it is the most basic and common type of programmatic advertising. The ad inventory is available to any bidder in real time to purchase. Then it’s up to you as a marketer to determine if the ad space is the best choice for your specific demographic.
  • Automated Guaranteed: It is the most automated programmatic advertising type, where ad inventory is reserved in advance. The pricing is also fixed, so the campaign process is automated entirely through a software platform.

Now that you’re aware of the programmatic advertising types, you can examine their importance in the marketplace. It’s important to understand why your business may want to invest in this new way of buying ad space to reach its market.

Benefits of Programmatic Advertising for Marketers

Your business may be wondering: why is programmatic advertising important? There are numerous advantages that marketing teams can monopolize if you know them, and understanding the benefits programmatic advertising offers will help.

Here are some of the most significant benefits that steam from utilizing programmatic advertising:

Better Targeting

Every business understands that its ideal customer is who they want to reach. With programmatic advertising, you can layer these targeted criteria to reach exactly the audience that you desire. And, you don’t have to spend a ton of money either, which saves money on spend while making you more money per impression.

Bigger Scale

Traditional ways of advertising and media buying limit you to smaller inventories and lesser reach. With programmatic, you have incredible scalability at a massive volume, reaching tons of people across the internet wherever they go through retargeting. You can purchase any available inventory.

More Control

Marketers have far more control over changing elements within campaigns with programmatic advertising. You can continuously build upon your results with optimizations so you can quickly pivot and ensure success. Reviewing feedback and data gives your business the know-how to set up better ads, leading to far more effective advertising campaigns in the future.

Climate Updates

Did you know that with programmatic advertising, you can reach potential clients in the proper weather conditions? Weather signals are a huge way of helping place your business message in a way to instantly win over your target audience. Insights on your business give you the power to set specific parameters, with something as simple as “sales increase when it snows.” Then, your message becomes more relevant.

Goals and Objectives

Marketers turn more to programmatic advertising for the added benefit of improving brand awareness. You gain valuable insight and marketing data from prospects, which allows you to be more creative and direct in your advertising. Therefore, setting your target goals of things such as increasing conversion rates, click-throughs, etc. can all be achieved exponentially.

Less Expensive Budget

Any smaller, medium-sized, or big business can find a programmatic advertising budget that works. Platforms allow you to set your maximum budget so the ads don’t cost more than what you set them at. So any business out there can easily promote and sell products and services to their target clientele.

Return-on-Investment (ROI)

Since you’re saving money with a set budget, you can also be assured you’ll earn a higher ROI. Investment in programmatic advertising digital ad space will go far to drive sales for your business due to the ability to directly identify what works and engages your prospects. Marketers have the advantage of putting more focus on resources and strategies where they know they will produce results.

Investing in Programmatic Advertising

Now that you know how programmatic advertising works and what it does, you can explore the options that are out there and find what works best for your business. Ensure you are managing compliance on digital platforms, setting up your business goals and budget, and knowing your target audience so you can set up proper parameters.

Marketers need to invest in the right ad space to ensure it will drive sales. It takes effort to do the research and locate the proper channels. But once you have the insights and can collect data in real time, you can make adjustments as you go to campaigns and solidify your marketing efforts for higher revenue.

Programmatic advertising is a powerful way to take your organization to the next level. Marketers should take note and focus their resources on programmatic advertising to build more effective campaigns that resonate and convert.

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