Commentary
The Benefits of Programmatic Data for Small Businesses
- by Mario Carrasco , Op-Ed Contributor, September 1, 2023
Digital advertising, powered by programmatic data, has made marketing at scale accessible for small businesses. Before digital, limited budgets and resources made it difficult for small businesses to reach their target audiences through traditional advertising methods such as print, radio, and television. This put them at a disadvantage to larger firms. When digital advertising tools like Facebook came along, small businesses could finally get their message in front of their audiences at affordable rates.
As digital continued to evolve, so did the platforms. Google DV360, Trade Desk and Xandr are just a few of the demand-side platforms leveraging consumer programmatic data to optimize digital advertising campaigns that reach consumers where they are online. Programmatic data improves media buys by using data from multiple sources to target ads more precisely, thus minimizing ad waste which means more money in the bank for small businesses.
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Programmatic data can come from various sources, including first-party, third-party, and real-time data. The best type of programmatic data for small businesses will depend on their specific needs and goals. However, zero-party data is often considered the most valuable type of programmatic data because it’s permission-based, coming directly from the consumer, so it is viewed as the most reliable and accurate.
Benefits of Programmatic Data
Let’s take a closer look at how small businesses can benefit from using programmatic data.
Improved efficiency – Programmatic data can target ads to specific demographics, interests, and behaviors. This can help small businesses reach their target audience more efficiently and use their ad dollars more wisely.
Access to consumer behavioral insights – Consumers’ shift to digital not only makes their lives easier, but it also makes advertisers’ jobs easier. Consumers leave digital breadcrumbs as they navigate the internet. Programmatic data helps advertisers understand customer behavior which can improve the customer experience and drive more sales.
Real-time performance metrics – Programmatic advertising happens in real-time, meaning advertisers can keep their finger on the pulse of their campaigns. That real-time reporting provides visibility into campaign performance and the opportunity to pivot if needed. Post-campaign analysis of programmatic data can help optimize future campaigns and improve results.
Save time and money – Programmatic data can help small businesses save time and money by automating the process of buying and placing ads.
Programmatic advertising may seem intimidating to some small businesses, but it’s important to remember that the platforms’ algorithms do most of the work. The platforms are setting the bids and placing the ads. The job of small businesses as advertisers is to identify who they want to reach, determine the best offer, and set a reasonable budget.
Steps to Get Started with Programmatic Data
Here are some tips for small businesses that are considering using programmatic data to inform their next digital advertising campaign:
Start small: Don't try to do too much too soon. Start with a small campaign and gradually scale up as you gain experience.
Work with a partner: Many companies specialize in helping small businesses use programmatic data. Working with a partner can help you get started faster and minimize costly mistakes.
Focus on your goals: What do you want to achieve with programmatic data? Once you know your goals, you can choose the right data and tools to help you reach them.
Measure your results: It's important to track the results of your programmatic advertising campaigns to see what's working and what's not. This information can be used to improve your campaigns over time.
Programmatic data can be a valuable tool for small businesses looking to reach their target audience more effectively and efficiently. By following these tips, small businesses can get started with programmatic data and see results.
