In 2009, programmatic advertising--the automated buying and selling of digital advertising inventory--changed the face of online advertising by allowing companies to more efficiently and effectively place ads across multiple devices. With programmatic ad spend expected to reach $14.88 billion by year end, it has grown to become an essential part of every successful digital marketing strategy.
As consumers increasingly turn to desktops and mobile devices to communicate, make purchases, social network, and more, the pressure is on for marketers to leverage programmatic advertising to grab their attention, secure buyers, and deliver business value. Here are five strategies that marketers can apply to their programmatic marketing campaigns in order to achieve measurable performance results.
Set Clear ROI Goals
In a data-driven marketing world, success can only be measured if clear goals are in place. This includes setting priority KPI benchmarks and ROI targets, but marketers need to dive deeper.
The first step for marketers is to determine the amount they’re willing to pay to drive a transaction. It’s important to keep in mind that new customers are more expensive to engage than existing ones, so it’s critical for marketers to build unique goals for each user type. This strategy allows marketers to correctly allocate ad spend and ensure ROI goals are on target for each audience.
Understand The Customer Journey
By focusing on a customer’s path to purchase over time--and not just inventory--marketers can uncover unique insights that allow for better conversion attribution on an ongoing basis. In an effort to better understand customers’ purchasing behaviors, marketers and their digital ad teams need to identify the following:
• What’s the average time between first Web site visit and conversion?
• How many paid-for clicks are there per conversion?
• What’s the bounce rate at each stage of the funnel?
• What’s the frequency of purchases from repeat customers?
• What’s the rate of sales from new customers per channel?
Without a clear understanding of the customer journey, marketers may miss out on valuable information needed to create winning campaigns that pay off.
Smart Data Means Better Ads
Data without context is useless. To get the most out of the data resources available, marketers need to learn the implications of the data and put it into action.
Every day, people create 2.5 quintillion bytes of data, and that number isn’t slowing down.
From desktop to mobile to in-store purchases, marketers have a huge opportunity to leverage customer data to improve the overall accuracy and effectiveness of how they reach and attract customers. In fact, the more data marketers can gather offline and online, the better equipped campaigns will be to drive sale conversions and revenue.
Invest In Premium Inventory
Marketers are paying top dollar for premium inventory and are expecting premium results. Yet, they’re at times left disappointed. This is a red flag. It’s time for marketers to start asking their vendors some questions.
Start by investigating how premium inventory is bought and sold, as well as which real-time bidding platforms and exchanges vendors work with. It’s also important to learn about any direct relationships a vendor may have with publishers to protect brands from bidding wars and fraudulent ad placements.
These answers are key to preventing false traffic that can generate artificial ad impressions and visits. If vendors don’t have measures in place to prevent fraud, marketing ad dollars could be going to waste.
Your Audience Is On Mobile--Are You?
With 1.4 billion transactions per year across both desktop and mobile sites, optimizing for mobile is one of the most important aspects to any marketer’s ad strategy.
Marketers should ensure ads are compatible with all devices and screen sizes--or risk losing consumer eyeballs and share of wallet. For example, marketers need to confirm the use of HTML banners only, as Flash banners can’t run on Apple technology.
Marketers need to ensure ad display campaigns are optimized for mobile and can transition seamlessly across multiple devices. By breaking down traffic per device type, marketers can cross-reference their site traffic split, ensuring optimal performance.