The increasing use of programmatic advertising to promote small businesses and other enterprises is quite visible. And considering the expected results of hiring a programmatic advertising agency, the hype is justified.
Programmatic advertising is among the latest and most upgraded forms of digital advertising. Due to the popularity of programmatic advertising, it is now a part of the marketing strategies of almost all digital advertising-holding companies.
You’ll find everything in this guide to understand things better, from what is programmatic advertising to bidding types and the benefits of hiring an agency. So, let’s get started!
What is Programmatic Advertising?
Programmatic advertising, also known as programmatic marketing, automates the online buying and selling process of advertising spaces. It targets platforms with audiences that are most suitable for your business and bids to buy its ad inventory. It helps connect advertisers and publishers connect. Like AI lead generation methods, the programmatic advertising agency uses Artificial Intelligence (AI) and machine learning.
Previously this complete procedure, including searching for bids, bidding, buying, and selling, was all manual. Now, programmatic marketing saves manual effort and time by automating the process. Moreover, its efficiency in finding the best suitable bidding and results is beyond the manual process.
A programmatic advertising agency is quite the opposite of a digital advertising agency business model. When digital marketing agencies solely work on online marketing, programmatic agencies work on almost every platform, from mobile websites and apps to billboards, TV, and radio channels. Programmatic advertisements can include text, image, and video ads.
Types of Bidding or Programmatic Media Buying
Programmatic Direct
As quite evident from its name, programmatic direct is a direct communication between a publisher and an advertiser. In this process, the advertiser receives an invitation from the publisher to buy the ad space or inventory. The invitation results from a previous negotiation between the parties on a price based on cost-per-mile (CPM).
Private Marketplace (PMP)
A private marketplace is a bidding type that allows only certain advertisers to join. The advertisers in such bidding are often directly invited by the publisher or are selected through applications.
Preferred Deal
In this bidding, publishers set a CPM price for their inventory and allow advertisers to bid on it. Each advertiser can bid only once on an impression, and the bidding can be above the set CPM. Preferred deal bidding only allows a certain count of advertisers to join the bidding. It is a transparent auction process where the highest bid gets the ad inventory.
Real-Time Bidding (RTB)
Real-time bidding is an open auction that allows multiple biddings until the ad space is sold. All publishers and advertisers are allowed to join in the bidding process. This bidding type can be considered an automated live auction where the highest bid wins and takes the ad inventory for a certain time.
Now that you know what is programmatic advertising and how bidding works, you should start thinking about utilizing it. Programmatic marketing is undoubtedly fruitful, but it is also challenging to do it yourself. And so, hiring a programmatic advertising agency seems a safe and reliable option.
The following benefits of hiring a programmatic advertising company will help you understand how collaborating with a company is better than an in-house strategist team.
Advantages of Hiring a Programmatic Advertising Agency
1. Higher Efficiency
Programmatic advertising agencies have contacts with demand-side platforms (DSPs). Their partnerships with DSPs help in higher campaign effectiveness as they know what works better for their clients. Meanwhile, an in-house team cannot conduct this analysis beforehand because of a lack of contacts; thus, it can fall behind in efficiency.
2. Time Saving
Finding and hiring an in-house programmatic advertiser team will cost you much of your precious time. Plus, the team will take further time to analyze the industry’s requirements and learn everything related to programmatic advertising. In contrast, an agency has individuals who are experienced in programmatic marketing. Moreover, their contacts with DSP platforms ensure better results in less time. Hence, hiring a programmatic advertising agency saves you the time needed to build and educate an in-house team.
3. Cost Friendly
An in-house amateur team can fail to find the right platforms for your enterprise, which, as a result, will end up in losing the investment. However, an agency knows what works best for every business and the platforms they should use for your programmatic advertising campaign. A programmatic agency uses a single DSP for several clients, which costs less than using different DSP platforms. So, you can always find an agency that meets your needs without denting your pocket. Surprisingly, an agency may be friendlier than an in-house team because of already available resources.
4. Expertise in Programmatic Advertising
Programmatic advertising is no doubt a great way to market your business, but it is not a cakewalk. A programmatic advertising company has expertise in this field, and they know what they are doing. From finding the best platforms for different business niches to targeting the right audience by bidding for ideal ad inventories, they know it all. This way, the agency also ensures value for your invested money.
5. Increased Scalability
A programmatic advertising agency has a greater audience reach than an in-house advertiser. When programmatic advertising uses AI to target ad spaces with users similar to your target audience, an agency finds platforms with larger audiences. This eventually increases the chances of gaining an audience that readily gets attracted to your business.
6. Improved Return on Investment (ROI)
When you have an in-house strategist working on programmatic advertising for your company, there is a risk of failure. You can only hope that things work out how you want them to, but the risk is still there. In contrast, when you collaborate with a programmatic advertising agency, the chances of positive results are higher. With their experience and contacts with DSPs, the agency puts your money in the right direction to ensure an increased return on investment (ROI). Furthermore, with the greater scalability of an agency, your ads will reach a broader audience, resulting in positive responses.
7. Better Bidding Opportunities
Due to their contacts and partnerships, agencies are more likely to get access to premium bidding than an in-house team. For instance, they may receive Private Marketplaces (PMPs) and Programmatic Direct invitations. It is important to mention that Programmatic Direct is quite expensive if you join it through an in-house team. Thus, a programmatic advertising agency offers better bidding opportunities for your ads.
8. Customized Campaigns with Flexible Budget Options
When you contact a programmatic marketing agency, they first understand your business and its objectives. They consider your target audience and campaign goals to create a customized campaign for better results. Plus, they offer different packages, so you can go with the one that suits your budget and goals.
Transparency
While your in-house team may tell you what you want to hear, the agency usually shares accurate results. It helps them create data-driven campaigns as they do not feel pressurized.
Tips for a Smooth Programmatic Advertising Campaign
Describe Your Target Audience and Goals
To ensure that everything goes according to the plan, it is essential to have a detailed discussion regarding your business. First, you must define your ideal customers and consumers to give a clear path to the campaign; it will help the advertising agency understand your business properly.
In addition, discuss and tell them the results you seek from this collaboration. This way, the programmatic advertising agency can target your expected goals and audience to create a personalized campaign.
Ensure Communication
Clear community is often underestimated, but it is a critical step to successful programmatic advertising. However, miscommunication can be a big risk to the advertising campaign even after all the effort and investments.
Apart from target criteria and goals, state your concerns regarding programmatic advertising. Also, ask about the strategies they will use to achieve the desired results. A credible programmatic advertising agency will clear up your doubts by explaining the process and methods they use.
Contact your Digital Advertising Agency
Not all digital advertising holding companies provide programmatic advertising services, but if they do, then it’s a plus. If you are already working on multiple advertising platforms, programmatic advertising is a plus. As the agency must be aware of your business goals, your audience, and the trends, no other agency can work better than them. However, remember to consider their previous programmatic advertising record and results.
Final Words
In conclusion, hiring a programmatic advertising agency like Kubico can benefit your business marketing campaign in several ways. They are better than in-house teams in terms of expertise and experience. So, they produce better results in less time. Also, the increased ROI due to their expertise and greater scalability coupled with flexible budget options leaves no room for doubts. However, clear communication with the agency is necessary to achieve the expected results.