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Ecommerce as a viable shopping option showed an immense growth during the pandemic. Even the giants like Amazon, Alibaba and Flipkart have seen phenomenal growth during this time.
Before the pandemic , online shopping habits were already there but with the lockdown, fear of stepping out and increased comfort level, digital sales developed as the go-to choice for shopping.
To further boost this trend, technological advances have made it easier for consumers to browse online, make purchases and have their products delivered directly to their doorstep. With this shift in consumer behavior, e-commerce companies are now focusing on progrmmatic advertising to reach their target audience where they are – online.
Programmatic advertising refers to the use of automated software to buy and sell ad inventory online. If you have ever been served an ad that feels like it was made just for you, that’s programmatic advertising at work. It uses data and algorithms to make real-time decisions about which ad impressions to buy and which to pass on.
Although it may seem complex, the principle behind programmatic advertising is simple – to reach the right audience, at the right time and on the right platform. The acroynms involved such as DSPs, SSPs and DMPs all play a role in facilitating this process.
For ecommerec brands, programmatic advertising offers a lot of value in terms of efficiency and accuracy. With diverse consumer behavior and preferences , programmatic advertising allows brands to target specific audiences based on factors like age, location, interests and more.
For example, if a brand wants to promote their new line of fitness products, they can use programmatic advertising to target individuals who have shown interest in fitness and health related content online. The brand can also choose to target people in a specific location where their products are available, increasing the chances of conversion.
Programmatic advertising offers numerous benefits to e-commerce brands looking to drive success:
Programmatic advertising allows brands to expand their target audience beyond traditional demographics. With access to more data points, brands can identify and target new potential customers, increasing the reach of their campaigns.
For example, a clothing brand may discover that their products are popular among certain interest groups or behavioral segments. They can then use programmatic advertising to target these groups and expand their customer base.
The geographical reach can also be expanded with programmatic advertising. This is particularly useful for e-commerce brands looking to enter new markets and expand their global presence.
With programmatic advertising, brands can serve ads across multiple channels and platforms, giving them limitless options for ad placement. The search, social, video, audio, and display channels have billion of daily users. When brands use programmatic advertising, they can target their audience on any of these channels, increasing the chances of conversions.
For example, a beauty brand can serve ads on social media platforms like Instagram, YouTube, and TikTok. While a B2B company may prefer to serve ads on LinkedIn and search engines like Google and Bing. With programmatic advertising, brands can choose the best channels for their specific audience and goals.
Programmatic advertising provides valuable insights into the behavior of a brand’s target audience. With data such as browsing and purchase history, brands can better understand their audience and tailor their campaigns accordingly.
For example, if a brand notices that a certain segment of their audience is more likely to convert on weekends, they can schedule their ads accordingly. The data-driven approach helps e-commerce brands to reach their audience at the most opportune times, increasing the chances of conversions.
Programmatic buying also help refine audience targeting by excluding certain demographics that are less likely to convert. This not only saves ad spend, but also ensures that the ads are only shown to those who are most likely to make a purchase.
Programmatic advertising relies on real-time bidding, which means that ads are served in real-time based on current demand and available inventory. With this approach, brands can reach their target audience when they are most likely to be online and actively engaging with content.
For instance, a fashion brand can serve ads on popular websites and blogs during Fashion Week when there is high traffic and interest in their products.
In the fast-paced world of e-commerce, where products and trends can change quickly, this is a major advantage. Brands can ensure their ads are always shown alongside relevant content, keeping their campaigns fresh and effective.
One of the biggest benefits of programmatic advertising is its real-time bidding system. This means that brands only pay for ad impressions when they are relevant to their target audience.
For example, if a brand is targeting women aged 25-35, their ads will not be shown to men or older age groups. If a male user, who falls outside the target audience, visits a website where the brand’s ad is being served, their bid will not be triggered, saving them from spending on an irrelevant impression.
Ecommerce brands can also set a maximum bid for their target audience, ensuring that they are not overspending on ad impressions. As a result, programmatic advertising helps brands to optimize their ad spend and make the most of their budget.
Through programmatic advertising, e-commerce brands have access to premium publishers and websites that may not be available through traditional ad buying methods.
You don’t have to be a Fortune 500 company to advertise on popular websites and reach a wider audience. With programmatic advertising, brands of all sizes can tap into premium inventory and get their ads seen by a highly engaged and relevant audience.
An advertising partner or a demand side platform (DSP) can help e-commerce brands access premium inventory and reach their target audience at scale. VenziMedia is one such DSP that specializes in programmatic advertising for e-commerce brands.
Programmatic advertising is a highly data-driven approach, which means that campaigns can be continuously optimized for better performance.
Through real-time data analysis and automated bidding algorithms, programmatic campaigns can adjust to changing market conditions and audience behavior. The result is a higher ROI for e-commerce brands, as their ads are always reaching the right audience at the right time.
Programmatic advertising has become a game-changer for e-commerce brands, providing them with advanced targeting capabilities and efficient ad buying options. Here are 7 strategies for using programmatic advertising to maximize conversions and expand your global presence.
Your buyers ‘ journey is the path that customers take from initial awareness to making a purchase. By understanding this journey, e-commerce brands can identify key touchpoints and target their audience with relevant ads at each stage.
Programmatic advertising offers various targeting options, including demographics, interests, and behaviors. By combining these options with the customer journey, brands can reach their audience at the right time and place to drive conversions.
Data from programmatic advertising also help e-commerce brands forecast future traffic and sales patterns. This information is valuable for planning ad spend and budget allocation.
For example, if a brand experiences high traffic and sales during the holiday season, they can increase their ad spend during that time to capitalize on the spike in demand. On the other hand, if there is a slow period, they can reduce their ad spend or shift it to other channels.
You can also use programmatic advertising to target specific regions or countries based on their consumer behavior and purchasing patterns. This helps brands tailor their campaigns and ad spend for maximum impact.
With DCO, programmatic advertising allows brands to dynamically change creative elements in their ads based on real-time data. DCO includes product images, pricing, and messaging.
For e-commerce brands selling multiple products or with frequent changes in inventory, DCO is a powerful tool to keep their ads relevant and engaging. You can track user behavior and interests to deliver personalized ads that are more likely to drive conversions.
Retargeting ads are another effective strategy for e-commerce brands, allowing them to re-engage with potential customers who have previously visited their website. The abandoned cart is a classic example of retargeting, where brands can show ads to users who have left items in their cart without making a purchase. This helps recapture lost sales and improve ROI.
First-party data is information collected directly from your customers, such as email addresses, purchase history, and website behavior. With programmatic advertising, brands use this data to create highly targeted campaigns and deliver personalized messaging to their audience.
By leveraging first-party data, e-commerce brands can better understand their customers’ interests and preferences, making it easier to tailor ads that resonate with them. This not only increases the chances of conversions but also builds stronger brand-customer relationships.
You apply a scientific approach to advertising through A/B testing, where two versions of an ad are compared to determine which performs better. With programmatic advertising, e-commerce brands can easily test different ad creatives and messaging to identify the most effective combination for their audience.
By continuously testing and optimizing ad elements, brands can improve their campaign performance and drive higher conversions. It also helps them understand their audience better and create more targeted campaigns in the future.
Programmatic advertising allows e-commerce brands to reach consumers across various channels and devices. By implementing a cross-channel marketing strategy, brands can target consumers at different stages of the sales funnel.
For example, a brand can use programmatic display ads on social media to raise awareness, then retarget with search ads for users who have shown interest in their products. A seamless and cohesive experience across channels increases the chances of converting potential customers into actual buyers.
Lastly, e-commerce brands must constantly monitor and analyze their programmatic advertising performance metrics to identify areas of improvement. The data provided by programmatic advertising allows brands to make informed decisions and optimize their campaigns for better results.
Metrics such as click-through rates, cost per acquisition, and conversion rates help brands understand their campaign effectiveness and make necessary adjustments.
VenziMedia offers a range of programmatic solutions designed specifically for e-commerce brands. Our advanced technology and expertise in the industry can help you achieve success in your programmatic advertising efforts.
We provide targeted campaigns that reach your audience at the right time and place, utilizing first-party data for personalized messaging and retargeting strategies for maximum impact. Our cross-channel approach ensures that your brand is visible to potential customers at every stage of their buying journey.
