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Technology has transformed the way we live, work and communicate. It has even changed the way businesses advertise their products and services. In 2024, advertising is no longer limited to traditional mediums such as TV, radio, and print media. The advertising industry has expanded to the digital realm, with programmatic advertising leading the way. So, what exactly is programmatic advertising? And how can marketers utilize it for mobile app user acquisition?
Here’s everything you need to know.
First, let’s understand what mobile app installs are and why they matter.
With the increasing use of smartphones, mobile advertising has become crucial for businesses. People all over the world are spending more time on their mobile devices than ever before. An average user spends about 3 hours and 46 minutes on their mobile devices.
Spending on mobile app installs 399.6 billion by 2024 by 2024, a 17.2% increase from the previous year. According to the Ericsson Mobility Report, this trend is expected to continue, with mobile data traffic projected to increase by 25% by 2025. So, it’s safe to say that mobile programmatic advertising is the future of mobile app user acquisition.
So, what makes programmatic advertising the go-to method for acquiring users for mobile apps? Here are some of its key benefits:
Programmatic advertising allows for precise targeting of audiences based on demographics, interests, behaviors, and more. The users most likely to be interested in your app will see your ads. This leads to acquiring highly relevant users, increasing the chances of conversion and retention.
Programmatic advertising can target users across multiple devices, including smartphones, tablets, desktops, and connected TVs. This allows for a seamless and consistent user experience, no matter what device they are using.
With programmatic advertising, ad placement and delivery happen in real time. The algorithms constantly analyze data and make adjustments to optimize ad performance. As a result, ads are delivered to the right audience at the right time.
The insights and data collected through programmatic advertising are invaluable for businesses. App users’ behavior, engagement rates, and conversion metrics can all be tracked and analyzed. Businesses can use this information to make data-driven decisions and improve future campaigns.
Programmatic advertising is highly cost-effective compared to traditional methods. The CPI (cost per install) rates are lower, and you only pay for the targeted audience who install your app. It eliminates the need for large upfront investments and allows for better budget management.
Programmatic advertising provides transparency into ad performance, reach, and impressions. This allows businesses to control their campaigns more and make real-time adjustments if needed. It also helps to identify and eliminate fraud, ensuring a more trustworthy and effective advertising ecosystem.
Programmatic advertising involves a process that happens in milliseconds. Here are the key components involved in the programmatic advertising ecosystem:
A DSP is an automated buying platform advertisers and agencies use to purchase ad inventory across multiple ad exchanges and websites. It allows buyers to target specific audiences, set budgets, and optimize campaigns.
For example, Google DV360, Trade Desk , and Venzmedia are some popular DSPs used for mobile app use
An SSP is the technological backbone of publishers’ digital advertising operations. It helps publishers maximize ad revenue by connecting them to multiple DSPs and ad exchanges.
For example, Google Ad Manager is an SSP that allows publishers to monetize their ad space through programmatic advertising.
A DMP platform collects and stores data from different sources, including websites, apps, and social media. This data is then used to create audience segments that can be targeted in advertising campaigns.
A DMP platform collects and stores data from different sources, including websites, apps, and social media. This data is then used to create audience segments that can be targeted in advertising campaigns.
The programmatic advertising models are ways to execute Programmatic Dsp deals. These models help advertisers and publishers to buy and sell ad space efficiently.
Here are the four main types of programmatic advertising deals and formats:
RTB is the most common programmatic advertising model. It involves buying and selling real-time ad impressions through an auction-based system. The advertisers bid on ad impressions, and the highest bidder’s ad is served to the targeted user. This process takes place in milliseconds.
Programmatic direct deals involve a fixed-price negotiation between advertisers and publishers for specific ad inventory. This method is ideal for buying premium ad space, such as homepage takeovers or sponsored content.
A PMP is an invite-only marketplace where publishers offer their premium ad inventory to a select group of buyers. Advertisers have access to higher-quality and more targeted ad placements through PMPs.
Preferred deals are similar to PMPs but involve direct negotiations between the publisher and advertiser. This model allows for more control over the pricing and placement of ads.
Your mobile app can benefit greatly from implementing programmatic advertising. Here are the steps to take when setting up your programmatic advertising campaign:
You will need to set up a campaign to get started with programmatic advertising for your mobile app.
Your target audience is the users most likely to be interested in your app. To effectively reach this audience, you must identify their demographics, interests, behaviors, and more. This information can be used to create highly targeted ads and increase the chances of conversion.
Ad formats refer to the ad type used to promote your mobile app. Some common ad formats for mobile apps include banner ads, interstitial ads, video ads, and playable ads. The key is to choose ad formats most likely to appeal to your target audience and fit in with the user experience.
The budget for your programmatic advertising campaign should be based on the cost per install (CPI) and the number of installs you want to achieve. Start with a lower budget and gradually increase it as you optimize your campaigns.
Here are some key performance indicators (KPIs) to track and measure the success of your programmatic advertising campaign:
Ad impressions refer to the number of times a user has seen your ad. This metric gives insight into how widely your ad is being shown.
Ad Impressions = Number of Times Your Ad is Displayed
The click-through rate measures how many users clicked on your ad after seeing it. It is calculated by dividing the number of clicks by the number of impressions.
Click-through Rate = (Number of Clicks / Number of Impressions) x 100
The conversion rate measures how many users installed your app after clicking on your ad. It is calculated by dividing the number of installs by the number of clicks.
Conversion Rate = (Number of Installs / Number of Clicks) x 100
Optimization is essential for the success of your programmatic advertising campaign. When analyzing data and insights, here are some adjustments you can make to improve your campaign:
A/B testing involves running two versions of an ad to see which one performs better. You can test different ad copies, messages, or audience targeting strategies to determine the most effective approach for your campaign.
Retargeting is a strategy that involves showing ads to users who have already interacted with your app or website. Lookalike audiences, on the other hand, use data from your existing users to target new potential users who exhibit similar characteristics.
Businesses use programmatic advertising for mobile app user acquisition by following these best practices:
A multi-channel strategy involves using multiple media types, such as social media, display ads, and video ads, for your programmatic advertising campaigns. By diversifying your channels, you can reach a wider audience and increase your chances of conversions.
Data and insights are crucial for understanding your target audience, optimizing ad performance, and making informed decisions. With programmatic advertising, you can access real-time data to adjust and improve your campaigns.
Using creative and engaging ad formats is the key to standing out in a crowded digital landscape. With programmatic advertising, you can leverage interactive and immersive ad formats, such as playable ads or augmented reality experiences, to capture the attention of your target audience.
Programmatic advertising allows for advanced targeting options, such as geotargeting, contextual targeting, and retargeting. These options can help you reach the right users at the right time and increase the effectiveness of your campaigns.
To ensure the success of your programmatic advertising campaign, you should continuously test and optimize your ads. You can improve ad performance and achieve better results by analyzing data and making adjustments.
A DSP technology platform helps advertisers purchase and manage ad inventory from multiple sources. Partnering with a trusted DSP can provide access to premium inventory and advanced targeting capabilities. Venzimedia, for example, is a leading DSP specializing in programmatic advertising for mobile app user acquisition.
The challenges and limitations of programmatic advertising include:
Ad fraud is a major concern in programmatic advertising, as it involves fake impressions and clicks that can drain your budget and skew performance data. Brand safety is also a concern, as ads may appear on inappropriate or questionable websites.
The collection and use of user data for targeted advertising have raised privacy concerns. The General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the US are examples of data privacy regulations that impact programmatic advertising.
Technical limitations and issues with integrations can affect the performance of programmatic advertising campaigns. Advertisers must ensure that their ads are properly integrated with their tracking systems and that technical glitches do not impact ad delivery.
The future of programmatic advertising looks promising, with advancements in technology and new opportunities for reaching audiences:
As more and more users spend time on mobile apps, in-app programmatic advertising is on the rise. This allows for more precise targeting and measurement and better user engagement.
Machine learning and artificial intelligence (AI) are advancing data capabilities in programmatic advertising. This will enable more precise targeting and personalized ad experiences for users.
With the rise of voice-enabled devices and wearables, programmatic advertising is also moving into these emerging channels. Advertisers can now reach users through voice assistants and smartwatches, providing new opportunities for engagement.
Your programmatic advertising success relies on a well-planned and executed strategy. A partner with the right expertise and technology can help you achieve this success. If you want programmatic advertising success, don’t hesitate to partner with a trusted platform.
Venzimedia offers a comprehensive suite of programmatic advertising solutions. With a multi-channel approach, advanced targeting options, and access to premium inventory,
Venzimedia can help you achieve your user acquisition goals. Get in touch with Venzimedia today to learn more about programmatic advertising services and how we can help you grow your app user base.
