It took some time for programmatic display to seize its place in the sun.
1 What Is Programmatic Advertising?
Started as simple, static retargeting, programmatic technologies have over time become more sophisticated. Now programmatic is annexing bigger fields in digital marketing every day as new ways of incorporating it into the full-funnel approach are designed. With progress in Big Data processing, HTML5 expansion and users being constantly web-connected through new devices and channels, online display advertising has grown into a complex set of algorithms and technologies that allow advertisers to reach the right users with the relevant message at the proper time wherever they are. Result – increasing brand awareness, conversion rates, sales and loyalty.
Definition of programmatic: Programmatic ad buying aka Algorithmic advertising buying aka Audience buying – a way to automate media buying. Its core is that marketers are shifting from place buying to the direct purchase of the target audience. At the same time, due to procedures' automation, there is no need in complex and troublesome process of purchase and advertising space reservation (managers' communication, sending invoices, etc.).
And there you have it – leading advertisers vigorously use programmatic buying advertising for integrated prospecting, retargeting and loyalty campaigns. That is, programmatic display is used not just for simple retargeting visitors after they leave the website, but also for prospecting – hunting for potential customers – and converting prospects into loyal buyers.
In terms of purchase funnel it means that you can effectively use the same tool on virtually any of its levels – from 'Awareness' to 'Loyalty'. Thus, you are able to target prospects who may never have visited your site or shop before as well as to reach your devoted customers.
2 The Rise of Programmatic Ad Buying
This summer South East Asia’s leading fashion e-tailer ZALORA was looking to acquire new customers at a reasonable Customer Acquisition Cost (CAC). They ran various programmatic display campaigns using custom segmentation to target new customers with dynamic HTML5 banners. The result: increase in new customer acquisition by 17 percent. "The ability to reach users across desktop, mobile and Facebook has helped us to grow our customer base and revenues," said Kaushal Bhalotia, Head of Online Marketing at ZALORA. On the other pole of purchase funnel UK retailer Argos used programmatic to stimulate future purchases by existing customers with CRM-driven loyalty campaign. Our own client increased sales by 51% and conversion rate by 30% after implementing native ad and retargeting campaigns for cold and warmed up prospects as well as loyal consumers.
These cases shows that with integrated prospecting, retargeting and loyalty campaigns, traders can reach their users with programmatic display from end to end of their customer journey. The keys to success here are precise data and good content. By combining these two facets you can create data-driven strategy with specialized campaigns, tailored to the needs of specific user group. In other words, new consumers receive message that is more brand-oriented while undecided shop-visitors see more product-oriented displays. And a shopper, who already purchased a product, is chased with loyalty campaigns in order to build up his LTV with relevant offers. Naturally, you base tactics for each instance on different data parameters – from device type and seasonality to on-site shopping behaviors and CRM dossier.
On top of knowledge you get with this article we'd like to add couple words about look-a-like programmatic media buying. This is an effective technique that Digital Bee operates when promoting Ukraine-born companies and services on US and EU markets. When look-a-like programmatic is enabled, the advertising system connects to users' data aggregators and to your site. Then it automatically analyzes differences between users and buyers and checks whether a user is likely to be converted into a customer, and if he is – the system shows him your ad. Look-a-like programmatic is not a cheap tool but effective one. That's why in the US 73% agencies and 63% advertisers use look-a-like.
Armed with this expertise you're fully prepared to look beyond traditional marketing channels. By integrating prospecting, retargeting and loyalty campaigns with programmatic display you can reach specific audience on every level of full-funnel with specialized campaigns. As a result you'll be rewarded by shifting users from prospects to first-time buyers to loyal customers.
Creative Copywriter at DIGITAL BEE
LinkedIn - https://www.linkedin.com/in/alexsakhno