Pros and Cons of Programmatic Advertising

Imagine being able to target people living on the other end of the world who need the service you offer. Isn’t it something an advertiser would want? To reach out to a larger group of audience who are likely to convert. Programmatic Advertising can help advertisers get the results as granular as they want. But is it reliable? What are the possible pros and cons of programmatic advertising? Let’s dive in to find out!

Pros of Programmatic Advertising

• Fast-developing Technology – With everyday innovation, the tech industry is getting better, faster, and smarter. Most companies invest in programmatic Ad buying as it gives striking results. And does the work in a fraction of seconds, whether it is granular audience targeting or finding the better way to communicate with the audience. 

• Highly Efficient – Programmatic Advertising has made Ad buying and selling an easy and quick process. In manual advertising, online Ad spots were bought by humans, which was unreliable, slow, and less efficient. Nowadays, artificial intelligence and machine learning do the same, which has made the process more efficient.

• High Reach – Programmatic advertising supports massive inventory from multiple ad exchanges. These inventories can expand advertisers’ potential to reach a higher group of audience. In simple terms, more people will be able to view the ads.

• High Return on Investment – Programmatic Advertising is an automated Ad buying process that helps advertisers save time and reach their goals quickly. This process may increase the ad spend but guarantees a higher return on investment.

• More targeting options and Ad types – This platform supports many ad types, including native ads, videos, and many more. Additionally, it provides a wide range of options with its advanced audience targeting features. Custom audiences and remarketing strategies being a few of them.  

• Speed and Timing – With the built-in algorithms of programmatic advertising, bidding is done in real-time. It saves lots of time and ad spend, which is otherwise wasted in finding keywords to stay on the top.

• Better Insights on Data – Programmatic advertising provides advertisers with a better understanding of traffic value by keeping an eye on audience behavior and user profiles. Publishers also get a more efficient way to measure their revenue.

Cons of Programmatic Advertising

• Online Traffic Fraud – Click fraud and Ad fraud are the most prominent online traffic fraud faced by advertisers using programmatic advertising. These fraudsters use bots to watch and click on the Ads over and over again. It increases the view counts, but these are regarded as empty views as bots don’t buy services.

• Expensive – Programmatic advertising comes up with many advanced ad programs which provide laser-like precision in audience targeting. The advertisers have to pay higher prices for them, but many consider the investment worth it.

• Inappropriate Ad Matching – The advertisers also need to take care of brand safety while using programmatic advertising. Sometimes, the ads are served next to contents or websites that can ruin a brand’s reputation. The customer is less likely to consider a brand reputable if their ads come next to lewd, illegal, or racist content.

• Audience Saturation – Marketplaces are becoming more populated each day with the arrival of new platforms and more companies implementing programmatic advertising. With an increase in audience rate and new media, online bidding is becoming competitive.

Conclusion

Programmatic advertising has some cons like traffic frauds. But on the brighter side, it brings many advantages to the advertisers as well, such as higher audience reach, better insight, and much more. Ad frauds can bring risk to the programmatic advertising campaigns. But many companies are working on providing solutions to combat this problem. What are your thoughts on this? Let us know in the comment section.