Programmatic Ads.

Programmatic Ads are the real-time buying and selling of advertising placements through software and algorithms.

This contrasts with traditional media buying where advertisers had to receive ad placement information from platforms before they could set up campaigns. Now, specialized software synthesizes inputs such as user search data and context to optimize proposals, bids, and placements. Ads bought through this channel are displayed across websites, apps, and other platforms. Programmatic advertising works by sending a bid request when a user lands on a site. This bid request contains information about the user; which is matched to the best-fitting creative/ads and winning auction.

Programmatic advertising is rapidly growing due to its ability to deliver more efficient ad placements, increase return on investment, and reduce ad wastage.

Other benefits include enhanced feedback such as real-time reporting and analytics which advertisers can use to improve future campaigns. Additionally, programmatic bidding and targeting frees up more time for marketers to spend developing excellent creative and perfecting their campaign strategy. 

Programmatic Ads and Geofencing.

What is Geofencing?

Geofencing is the ability to advertise to customers in a certain area such as around a business, city, or landmark. It involves setting virtual boundaries around physical locations such as stores, venues, neighborhoods, or cities. When a user matching the targeting specifications of an advertiser enters this area, a customized marketing message is sent to their phone. This method of hyper-targeted, local advertising allows businesses to deliver promotional material to customers who are proximate to their store and match certain personal/demographic criteria. Geofencing is compatible with most smartphones and doesn’t require special apps.

  • Types of advertisements include text messages, in-app notifications, and ads on social media
  • Uses GPS or RFID technology to create virtual boundaries and specific areas that can target advertisement delivery to user’s phones 
Why is Geofencing important?

Geofencing allows businesses to share hyper-targeted promotions with users that are more likely to carry out purchases. Messages delivered through Geofencing can be tailored to the region and user, leading to greater engagement. Geofencing is beneficial to local businesses seeking to drive offline conversions such as store visits and purchases.

  • Generates more data for companies: gathers information about customer behavior in stores (sales, how long and often they visit) and aggregates data about customers including demographics, popular types of marketing material, and the products they prefer
  • For businesses with multiple locations, Geofencing allows them to deliver promotions unique to certain stores
    • Delivers exclusive promotions such as those for seasonal events or limited-time discounts
    • Advertising for events, conferences, or trade shows to attract potential attendees in the area
  • Reduces ad wastage and increases ROI by delivering ads to the right customers at the right time which creates conversions
  • Social networking - location-based filters, stickers, and more 
  • Gives local businesses a competitive advantage by targeting users who enter their geographic area with highly-customized marketing messages
  • Reduces ad spend wastage by targeting relevant audiences at the right time
  • Enhances customer experience by delivering desirable content when needed - such as when someone searches cafes/restaurants near me

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