Advantages and Disadvantages Of Programmatic Advertising

In the modern world, digital marketing is developing at the speed of light. So are technologies that have to do with promoting goods and services online. One of such innovations is programmatic advertising.

Essentially, programmatic adverting takes advantage of Artificial Intelligence to place your ads on the right websites and/or apps. It eliminates human negotiations and reduces the time spent on marketing. However, the technology is rather new, so it’s bound to have a few disadvantages.

We asked experts from programmatic marketing agency War Room to explain pros and cons of programmatic advertising today.

Advantages of Programmatic Advertising

Since the overall trend of the modern era is automation, programmatic advertising has many important advantages.

  1. Using Real-Time Data

By using programmatic advertisement, you essentially buy ad space in real time so the placement is done immediately. It’s a wonderful opportunity for the advertiser to buy the right traffic and stay connected to the right target audience.

For example, if you are advertising a meal replacement shake, you can place the real-time ad on a competitor’s app or a dieting website to ensure a faster conversion. Meaning, if a user is currently browsing the website or using an app, your ad will be appropriate and most likely give you a better ROI.

  1. Excellent Efficiency

Identifying your target audience is complicated. Searching for it is even tougher. When the program does it for you, you suddenly get plenty of free time and enjoy a high efficiency. All you need to do is give the program parameters of your target audience so the algorithm searches for users according to your needs, and places ads in front of them in real-time.

At the same time, you can set budget limits in order for your advertising campaign not to become too expensive. The program will work according to the budget parameters you enter.

The program can also look for the most affordable ad spaces in order to stay on the budget. It saves you plenty of time by eliminating rate negotiations.

  1. Impressively Focused Targeting

Programmatic advertising allows you to focus your efforts on specific goals. Some of the platforms even allow placing ads in front of users who are most likely to click on them at the time.

For example, you can focus on a specific audience, who are ready to make a payment to get services immediately, rather than on a potential client, who is only ready to get a consultation or share an email address for further marketing efforts.

 

Disadvantages of Programmatic Advertising

Despite numerous advantages, this fairly new way to optimize the digital marketing campaign has a few cons to consider.

  1. Online Traffic Fraud

Online traffic fraud driven by bots can place your ads on inappropriate pages. In the best case, your meal replacement shake ad can be placed on the website selling computers. In the worst case, it may appear next to an article describing anorexia consequences. In both cases, you’ll be making an investment in a useless commercial.

At the same time, a publisher may forward your ad to an affiliate website, where it will be completely out of place and fail to reach the target audience.

  1. More Popularity

As programmatic advertising is becoming popular, more and more offerings are appearing on the market. It’s becoming hard for the advertiser to find the best service supplier, who can offer an appealing deal.

With the increasing popularity, narrowly focused targeting can become more expensive. If you need to find a narrow audience, be ready to pay for the premium offering.

Final Thoughts

Even though the new approach to advertising has a few disadvantages, it’s definitely becoming an integral part of the modern digital marketing campaign.

 



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