Getting a good return on your marketing investments is the hallmark of effective advertising. In the past, advertisers had to spend an enormous amount of money to capture a relatively small percentage of actual conversions. Thanks to the development of advanced analytics and responsive software, there are now several ways that you can decrease your advertising budget while still managing to increase the number of potential customers who view your ads.
Real Time Bidding, also known as RTB, is a method of advertising that allows marketers to set their specific audience based on highly advanced analytics and demographic information. When using RTB, the advertiser sets the parameters of who should see the ad and then places a bid with the website that allows the advertiser to determine how much the advertisement is worth. Payment only gets made if the bid is accepted – if another company outbids you, your marketing dollars can be engaged toward something else. Bids get made automatically as potential customers who match the specific profile bring up a page. The actual ad loads almost instantly, so the customer notices no lag but still gets to view an ad that might be of special interest to them.
RTB is a form of programmatic marketing, which encompasses marketing endeavors that happen in an automated format in real time, but which happen so quickly that the end user doesn’t notice it. A good programmatic marketing platform requires a strong use of web analytics to determine as much information about the target audience as possible. This information can include basic demographic data, web browsing tendencies, and even recent search history. Because analytics are so important to successful marketing, they represent a high ROI. Money spent on upgrading your analytics can not only tell you more about your customer base but can also limit the amount of fruitless advertising you do.
Because data is so important to modern marketing strategies, it is important to make sure you focus on tangible information that truly has a use to what you are doing. This means ignoring information that exists primarily for vanity purposes. Page views are a significant example of this. While a high number of unique views on a website can be a good thing, they don’t mean much at all from a marketing perspective unless they are creating conversions. Similarly, the number of social media followers a group has doesn’t mean much if that organization isn’t having meaningful interactions with them. Focus more on engagement, shares, and value over numbers that exist primarily for vanity.
RTB and other programmatic marketing platforms are a very good way to limit the amount of time and money you spend on ads that don’t reach their target audience. The endeavors require more investment in terms of analytics and statistical research, but that investment pays off very quickly and in a significant manner. The more you put into these platforms, the more conversions you will get out of them.
This work by The Last American Vagabond is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License, and may be reposted as is, with attribution to the author and TheLastAmericanVagabond.com. Permissions beyond the scope of this license may be available at Ryan@thelastamericanvagabond.com.