Programmatic and Retargeting
How does programmatic buying work?
Programmatic advertising is effectively
data driven and automated ad serving content delivered to a browser based on a
persons search term. The resulting ad displays, depending on content of key
words, bidding and ad relevancy across the network. Two examples of these are
the Google Display Network (GDN) and the Simplifi Ad Network. There are also
other contributing factors such as user online behaviour, (based on their
browsing history), location, purchasing affinity, lifestyle, income, profession
and more, obtained via various profiling from such sources as their Google
account, Facebook or email and profiling software.
A great example could be; you are looking at a recipe for Mojitos that require
limes as part of the ingredients, the network understands this and with the
process of RTB (Real Time Bidding) searches for relevant ads and bidding from
companies who have bought inventory on the network that sell limes, (ie. Coles)
and then shares with you this ad to purchase limes from Coles on special –
sound familiar? Without getting to technical, this article aims to look at the
key benefits and differences between programmatic and on network buying.
Programmatic key benefits
Targeted – people can be served specific ads to their needs and searches, not just on relevant websites to their search requirements.
Low cost – due to being automated, means less man hours, saving human resources and time.
Quick – fast turn-around times as a result of the above.
Transparent pricing – like all CPM, you bid and set a price you are happy to pay for the ad to be served accordingly.
Performance and accountability – measure and gauge actual results based on CPC, CPM and CPA
This Youtube clip summerises it best – the life of a programmatic ad impression
What is Retargeting?
Retargeting, also known as remarketing, is a form of online display advertising that can help you keep your brand in front of ‘bounced’ traffic after they leave your website. Research shows that most websites only convert approx. 2% of traffic on the first visit, which leaves a huge percentage of traffic you are missing out on converting. Retargeting is a tool designed to help companies reach the 98% of users who don’t convert right away.
How Does Re-Targeting work?
Re-targeting is a cookie-based technology that uses simple Javascript code to anonymously ‘follow’ your audience all over the Web. By placing unobtrusive code or tracking pixel on your website you can effectively drops an anonymous browser cookie. Later, when your ‘cookied’ visitors browse the internet, the cookie will let your retargeting provider know when to serve ads, ensuring that your ads are served to only to people who have previously visited your site, or competitors.
The reason why Re-targeting is so effective, is because it enables you to target your spend on people who are searching relevant product related searches or are familiar with your business or brand.
Re-Targeting key benefits
Relevancy and Targeted – people can be served specific ads to their needs and searches, down to individual products they have previously searched.
Low cost – Similar to Programmatic, due to being automated this means less man hours, saving human resources and time.
Reinforcement – Retargeting is a powerful branding and conversion optimization tool, but it works best if it’s part of a larger digital strategy.
Quick and less workload – little work once set up.
Transparent pricing – like all CPM, you bid and set a price you are happy to pay for the ad to be served accordingly.
Performance and accountability – measure and gauge actual results based on CPC, CPM and CPA. Retargeting works best in conjunction with other push and search marketing, not as a stand along campaign, unless just trying to drive awareness and conversions from those already familiar with your brand or product. It is not designed to create large volume of incoming new visitors to your website.