How Programmatic Advertising Can Steer Buyer Motivation

It is a given that advertising has a significant impact on consumers. Advertising giants even spend thousands of dollars on their campaigns in the hopes of changing the perspective of their target buyers and converting these strategies to actual sales.

Digital advertising is on the verge of a disruptive shift. The goal is to capture the appropriate target consumers and take note of their preferences and buying journeys to persuade them to buy. But, with competition so tight, advertisers need to create campaigns that are not only cost-efficient but are optimized to deliver results. This is where programmatic advertising comes in. Over the years, programmatic advertising has grown exponentially. In 2015 alone, as much as 50% of the digital media expenditures were spent on programmatic advertising.

Why? Because it delivers results. It provides a significant increase in ad revenue.

How? By having a direct effect on consumer perceptions and behavior.

The Effect of Programmatic Advertising on Consumers

An industry analysis of programmatic advertising revealed that it has a direct correlation on the efficiency of advertising strategies.

Programmatic advertising permits organizations to produce a specific advertisement that caters to the right target audience, at the most opportune time, and within the appropriate context. When you look at it and compare it with traditional advertising modalities, programmatic ad placement has a more fine-tuned control of personalized marketing. Looking back at the 2015 discussion at the Interactive Advertising Bureau (IAB), about 20% of digital advertising was carried out by automation, and, today, we see it growing at a rapid rate. With the advancement in automation, time-consuming tasks are achieved within minutes, and this leads to higher ad revenue compared with their expenditures. When there is better targeting, there is improved personalization. Personalization, in turn, allows buyers to change their perspective about a specific brand, pushing them to press that buy button.

Programmatic advertising means using consumer data accurately and altering targeting efforts accordingly. When this happens, consumers have a heightened consciousness about the brand. Once they feel a personal connection with a brand, it would be easier for them to recommend to their family, peers, and colleagues.

Given all these, it is no longer surprising to see the programmatic advertising industry to exceed US$4 billion this 2020 despite the growing concern about the General Data Protection Regulation (GDPR). As such, organizations can do well by investing their resources on strengthening their marketing strategy through the incorporation of programmatic advertising and the provision of proper education of this growing technology to their managers. While programmatic advertising has established benefits, it can be detrimental to organizations if done wrongly. For this reason, most major brands outsource their programmatic advertising to third-party ad networks like AlgoriX.

Final Thoughts

In sum, programmatic advertising is a growing industry that affords organizations with higher ad revenue by creating a marketing strategy that caters to the right person, at the right time, and in the proper context. In an era where personalization is high on any consumer’s priority, what programmatic advertising brings to the table is enough for them to take a look and change their buying motivation.

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