Programmatic advertising is expected to experience steady growth in the upcoming years. It’s not surprising, considering what benefits it comes with. But, since it's becoming a preferred option for many marketers, it is crucial to underline its downsides as well. Thus, in this article, we will focus on the pros and cons of programmatic advertising. Want to learn all about them? Then read on!
What is Programmatic Advertising?
Programmatic advertising is the process of purchasing and implementing ads on websites automatically. It often involves real-time bidding (RTB) done in a matter of seconds when users enter a particular website.
Usually, programmatic advertising is done through special platforms, such as SSPs (supply-side platforms) and DSPs (demand-side platforms) which together build a system for both advertisers and advertising space owners. An example of that is the Google Ads Suite.
The Pros and Cons of Programmatic Advertising
Let’s look deeper into the advantages and disadvantages of programmatic advertising. As we have mentioned before, it is becoming a preferred method of placing adverts due to a plethora of benefits that come with it, yet it has some downsides. For the start, we’ll glance at the positives.
The Pros of Programmatic Advertising
- High personalization – With real-time bidding, and knowing who the ads are displayed to, programmatic advertising is capable of delivering much more personalized content. You can set up different parameters and tags for each marketing persona and approach them with customized ads designed specifically for them.
- Speed – Using programmatic advertising platforms makes purchasing ad space significantly easier, to the point where you need only a couple of minutes to set up your campaign. This lets you focus more on the strategies itself – simply spend time on more valuable tasks.
- Effectiveness – Imagine you’re the marketing manager of Procter & Gamble: you wouldn’t want your diaper adverts to be displayed to single men, or teenagers, would you? With programmatic advertising, this is not a problem – your materials only pop up to those users who match your settings, making sure that you don’t waste the budget on impressions to people who are unlikely to actually convert.
The Cons of Programmatic Advertising
- Ad fraud risk – One thing that may happen with programmatic advertising and that you’d rather avoid at all costs is ad fraud. How to avoid it? Consider your budget and the designed reach as a whole – if the deal is too good to be true, it’s probably a scam.
- Brand image danger – Another aspect that you should be aware of is the effect of programmatic advertising on your brand image. Chances are, that your ads may be displayed on sites that you don’t want your brand to be associated with.
Having discussed both the benefits and drawbacks of programmatic advertising, you are ready to make a conscious choice. Should you opt for this strategy? In our opinion, yes – the pros clearly outweigh the cons, so find the right platform and kick off your programmatic campaign.