Maximizing ROI with Programmatic and Native Advertising

Programmatic and native advertisements are vital for any sort of business success. But how does one use them properly?

Programmatic and native advertising is one of the leading elements of online marketing. These native ads help businesses attract specific target audiences and increase leads, generations, and, subsequently, the ROI as well.

That’s why native digital display ads crossed the revenue of around $52 billion in the US in 2020. So, what exactly are programmatic and native advertising? And why is maximizing ROI important with these two methods?

This article will answer those questions and more. So let’s get started. 

Understanding Programmatic and Native Advertising

Programmatic advertising, as the name suggests, is the method that automates advertising to reach its maximum effect. Compared to manual and more traditional methods of ads in the online world, programmatic advertising focuses on media buying for specific spaces.

One such example would be this top advertising spot like at the top of many websites. This is a paid space, and that means the company granted this space pays the website a specific amount. Thus, keeping this ad up and running continuously.

Now, native advertising is more or less the same. However, it’s also called sponsored content, as the content usually matches the context of specific websites/blogs. For sponsored content  there are two main things:

The ad is news, but it blends within the rest of the content and tricking the audience into clicking it;

But instead of staying on the same website, it’ll lead them to a new one—to the owner of the ads. 

This is done through RTB (Real-Time Bidding), where the website or platform sells and buys these ad spaces in real-time. Now, compared to programmatic ads, these ads are subject to change. So, if you see one ad, it might not be there the next time you visit the same website. 

Importance of ROI in Advertising

Now why is ROI important in advertising? There aren’t many explanations needed to answer this question. When a business spends money on advertising, they wish to generate more than what they have spent. For example, businesses that spend a lot of money on advertisements for preventing workplace injuries and fatalities, their main goal is to promote the idea so it can be implemented sooner.

Compared to organic marketing tactics like content creation or SEO, these paid programmatic and native advertisements yield quicker results. So, the two main points of understanding ROI for advertisers is so:

That’s why maximizing spending on native ads is a thing. Moreover, these expenditures expanded by 37% in the United States alone. 

Harnessing the Power of Native Advertising

Now it’s important to harness the power of native advertising. However, there are specific things that a business must cater to in order to make the most out of it. So, to keep things simple, here are three main essentials for harnessing the power of native advertising:

Understanding Audience

The first and perhaps the most important essential part of harnessing the power of native ads. Experts suggest that around 75% of customers trust editorial websites more than they trust social media—or other forms of digital media. 

Therefore, it’s important to create key demographics and psychographics. This helps to pin down the exact ads strategy for programmatic and native ads. 

Providing Value

Value is one of the key essentials of native ads. These ads just aren’t promotional brochures. They should be informative, actionable and offer engaging content. Remember, they aren’t just about promoting your business or product but also about educating your audience. 

Matching The Format 

It’s important that you match the format of the website or platform you are selecting for native ads. Therefore, they must meet the visual and contextual requirements of specific platforms. Let’s say you buy advertising space on Forbes.com. Then, it should be focused on businesses and related topics. 

Integrating Programmatic and Native Advertising

It’s important to synergize programmatic and native advertising together. This strategy should be weaved together with a seamless thread that passes the baton from one end to the other fluently. Here are some tips to be able to do that properly:

Native ad formats are important, as mentioned before. That’s why programmatic ads can yield more results if they are used with native ad formats. Let’s say a brand buys advertising space on a fashion website. Then, the native ad format should naturally fall into fashion or lifestyle categories.

Data-driven targeting requires advertisers or businesses to use programmatic data and audience insights generated by various tools. This lets businesses create specific ads for various segmentations in their target audiences.

Real-time optimization is about monitoring the ad campaign and making changes to it as the ad goes along. This is to ensure that timely bids, placements, or creative changes can be made. So, the advertisement can yield maximum effects. 

A/B testing is to find out which ads work better. This is one of the essentials of native or programmatic advertising. Moreover, it’s extremely important to elevate ROI. 

Measuring and Analyzing ROI in Programmatic and Native Advertising

Measuring and analyzing ROI to ensure maximum programmatic and native ad performance is one of the essentials for its upkeep. For that to happen, there are three main things that advertisers or businesses need to focus on, such as:

These are the key essentials of ensuring that all of the native and programmatic advertising strategies perform well. Therefore, it’s important to measure success and losses through KPIs and other analytical insights. And then, as mentioned before, focus on spending and investments in particular areas to maximize ROI. 

Conclusion

These are the key essentials of maximizing ROI in programmatic and native ads. It’s important to understand that all of these promotional tactics require thorough attention, personalization, and understanding of the audience. So, follow the tips mentioned in this article to yield the best results possible.