Using programmatic advertising to reach niche audiences
Programmatic Advertising (Prog) seems to be high on every marketing nerd’s agenda at the moment. One of the problems with this is that most people in the industry (agency and client side) really don’t understand what it is.
One of prog’s super powers is how niche it can be when it comes to who you are trying to target. An example of how this could be done is by using the very specific audiences programmatic gives you to promote and sell very specific B2B products
So what is it?
Programmatic advertising is an automated way of buying and selling digital ad inventory, using algorithms and software. It allows businesses to target specific audiences in a cost-effective way, and can be particularly effective for those looking to reach niche or specialised markets. In this article, we will explore the benefits of programmatic advertising for these types of businesses, and examine some examples of successful campaigns across various industries.
Targeting Niche Audiences with Programmatic Advertising
One of the key benefits of programmatic advertising is the ability to target specific niche audiences with high precision. By using data from a variety of sources, including browsing history, search queries, social media activity, first-party data, programmatic advertising platforms can identify users who are most likely to be interested in a particular product or service. This means that businesses can focus their advertising efforts on those who are most likely to convert, rather than wasting budget on a broad audience.
For businesses looking to target niche audiences, programmatic advertising can be particularly effective. For example, a company that sells specialist sporting equipment for a specific sport may struggle to find a large enough audience on traditional advertising platforms. However, by using programmatic advertising to target users who have shown an interest in that sport, the company can reach a highly engaged audience who are more likely to make a purchase.
Targeting B2B Audiences with Programmatic Advertising
For those providing B2B products online, the challenge of reaching the right audience is hard enough on its own, let alone generating conversions. Fortunately when running programmatic advertising campaigns we have access to very specific, engaged, third-party audiences you simply cannot access through any other advertising channel
Third-party audiences are curated data sets, made of specific segments. Data intelligence companies, (e.g. Epsilon or Factual) collect user data anonymously based on demographic or psychographic behaviour, and curate relevant audience segments. These audiences combined with high-quality placements, geo-targeting, demographics targeting and killer creative generate a high-volume of good quality leads.
Access to all major inventory Sources – Ad Exchanges
Apart from the standard Google ad exchange, programmatic advertising provides access to more inventory sources, including the likes of Pubmatic, Rubicon and more. In other words, programmatic advertising provides more placements (websites) for niche audience targeting.
Cost-Effective Advertising with Programmatic Ads
Another advantage of programmatic advertising is that it can be highly cost-effective. By using real-time bidding to purchase ad inventory, businesses can ensure that they are only paying for impressions that are likely to result in a conversion. This means that programmatic advertising can often provide a higher return on investment (ROI) than traditional advertising methods.
For businesses with a limited advertising budget, programmatic advertising can be a highly attractive option. By targeting specific audiences and only paying for impressions that are likely to convert, businesses can stretch their budget further and achieve a higher ROI.
Advanced Creatives Formats – Native Ads
Apart from Standard Display and and Video ads programmatic advertising is also used to showcase businesses’ brand and generate leads via programmatic native display ads, programmatic native video ads, catch up TV and other very engaging ad formats. These formats drive a higher CTR and video rates. For example, native ads are viewed 52% more than display ads, and they contribute to greater brand awareness. See below the Native ads example:
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Successful Programmatic Advertising Campaigns in Various Industries
There are numerous examples of successful programmatic advertising campaigns across various industries. One example is the online clothing retailer, ASOS. By using programmatic advertising to target users who had previously visited their website, ASOS was able to increase their sales by 28%.
Another example is the car manufacturer, Toyota. In an effort to reach a younger audience, Toyota used programmatic advertising to target users who were interested in music festivals. By serving ads on music streaming platforms and festival websites, Toyota was able to increase brand awareness among this demographic and drive sales of their vehicles.
Finally, the travel company, Expedia, used programmatic advertising to target users who had abandoned their website during the booking process. By serving personalised ads to these users, Expedia was able to increase their conversion rate by 15%.
Choosing the Right Programmatic Advertising Platform
Choosing the right programmatic advertising platform is crucial to the success of any campaign. There are a variety of platforms available, each with their own strengths and weaknesses. It is important to choose a platform that is able to target the specific audience that the business is looking to reach, and that provides detailed analytics to track the success of the campaign.
Some popular programmatic advertising platforms include Google Ads, Meta Ads, and Amazon Advertising. Each of these platforms offers a range of targeting options, including demographic targeting, interest and behavioral targeting.
The Future of Programmatic Advertising
The future of programmatic advertising looks promising. As more and more businesses turn to digital advertising, programmatic advertising is likely to become an increasingly popular option. The use of artificial intelligence and machine learning algorithms will also continue to evolve, allowing for even more precise targeting and optimisation.
However, as with any advertising method, there are potential drawbacks to programmatic advertising. One of the main concerns is the risk of ad fraud, where ads are served to fake websites or bots rather than real users. Another concern is the risk of ad fatigue, where users become overwhelmed by the number of ads they are seeing and become less responsive to them. When we’re running programmatic ads for our clients we ensure that the ads are being exposed only on high-quality websites.
Programmatic advertising can be a highly effective way for businesses to reach niche, B2B and specialised markets. By using data to identify the most relevant audience, businesses can achieve a higher ROI than with traditional advertising methods. There are numerous examples of successful programmatic advertising campaigns across various industries, including ASOS, Toyota, and Expedia. Choosing the right programmatic advertising platform is crucial to the success of any campaign, and businesses should carefully consider their options before selecting a platform.
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