Importance of maximising ROAS for programmatic ad

Picture this: you’re scrolling through social media and you come across an ad that perfectly matches your interests, right down to the colour of your socks. How did they know? Well, chances are it was a programmatic ad, using algorithms to target specific audiences with personalised content. Programmatic advertising has taken the digital world by storm, offering businesses a highly efficient way to reach their audience in the right place at the right time.

What is programmatic advertising?

In a nutshell, programmatic advertising is the automated buying and selling of digital advertising space. By leveraging data and technology, businesses can reach their target audience with highly relevant and personalised content. In fact, according to recent statistics, programmatic advertising now accounts for over 80% of all digital advertising in the UK. That’s right, programmatic advertising has taken over the digital advertising world like a swarm of bees on a jar of honey.

But it’s not just about being trendy. The benefits of programmatic advertising are hard to ignore. By using real-time bidding and other sophisticated techniques, businesses can optimise their advertising spend and achieve a higher Return on Advertising Spend (ROAS). In fact, according to a recent study, programmatic advertising can generate up to 3 times higher ROAS than traditional advertising . That’s like hitting a home run with your advertising campaigns every time.

Programmatic challenges faced by businesses

However, achieving a high ROAS for programmatic advertising is no easy feat. With the highly competitive and constantly evolving digital landscape, businesses must follow a strategic and data-driven approach to succeed. In this article, we’ll explore three simple steps that businesses can take to maximise their ROAS for programmatic ads and achieve their marketing goals. So, buckle up and get ready for a wild ride!

Now, let’s dive into the first step towards maximising your ROAS for programmatic ads: creating a killer keyword cluster strategy. Think of it like fishing – you want to use the right bait to catch the right fish. Similarly, with programmatic advertising, you want to use the right keywords to catch the attention of the right audience.

Three simple steps to achieve higher ROAS with programmatic ads

Step 1: Identify relevant search teams and keywords

The first step is to identify relevant keywords for your target audience. This means understanding the language and search terms that your audience is using. Did you know that 75% of people never scroll past the first page of search results (1)? That’s why it’s important to identify keywords that are not only relevant to your target audience, but also have high search volume and low competition.

Once you’ve identified these keywords, you can group them into clusters based on their relevance and intent. This helps improve the relevance of your ads and increase their visibility to your target audience. In fact, businesses that use keyword clustering for SEO optimisation can see up to a 300% increase in organic traffic (2).

To get started with keyword clustering, here’s a mini guide:

• Identify your target audience and their search behaviour using tools like Google Analytics and Google Search Console.
• Use keyword research tools like SEMrush or Ahrefs to find relevant keywords and their search volume.
• Group these keywords into clusters based on their relevance and intent. You can use tools like Excel or Google Sheets to create a spreadsheet that tracks your keyword clusters.
• Create a content distribution and programmatic strategy that maximises the potential of your programmatic campaign. This means identifying the right channels and ad formats to reach your target audience.
• By using a strategic and data-driven approach, you can create a keyword cluster strategy that maximises your ROAS and puts you ahead of the competition.

Step 2: Utilise Data and Analytics to Inform Programmatic Ad Campaigns

Data and analytics are the keys to unlock the doors of successful programmatic ad campaigns. As the digital world grows, the importance of data-driven insights is more important than ever. With a vast amount of data available, it is necessary to analyse and understand it to create effective programmatic campaigns.

According to a study by Forbes, companies that use data-driven marketing are six times more likely to be profitable year-over-year compared to companies that don’t. This clearly shows the power of data in the success of a business.

To utilise data and analytics for programmatic ad campaigns, the first step is to identify the trends and patterns in customer behavior. By understanding the consumer journey, businesses can create targeted campaigns that reach the right people at the right time.

Google Analytics is a popular tool for tracking website performance and gaining insights into audience behavior. By analysing the data from Google Analytics, businesses can identify which pages are most popular, how visitors behave on those pages, and what search terms lead them to the site.

Once businesses have identified trends and patterns in customer behavior, the next step is to use the data to create more targeted programmatic ad campaigns. This includes using insights from the data to create specific audience segments and tailor messaging to those segments.

By tailoring programmatic ad campaigns to specific audience segments, businesses can significantly increase their ROAS. In fact, according to a study by eMarketer, businesses that use data to target specific audience segments see a 39% increase in revenue.

To optimise programmatic ad placements based on analytics insights, businesses can use a variety of tools, including Google AdWords and Facebook Ads (Now known as Meta) . These tools allow businesses to target specific audiences, adjust bids based on performance, and track ad performance in real-time.

Step 3: Experiment with Ad Formats and Placement

Programmatic ads come in different formats, and experimenting with the most effective one is crucial to improving your ROAS. Some of the ad formats to consider include banner ads, video ads, and native ads, among others. By testing different formats, businesses can find the one that resonates most with their audience and delivers the best results.

Programmatic ad placement is key

Moreover, ad placement is another crucial factor in programmatic advertising. Placing ads in the right places can significantly impact the overall success of your campaign. It’s essential to experiment with different placement strategies to find the most effective approach. This includes identifying the right publisher, ad network, and specific sites for placing ads that resonate most with your target audience.

According to a recent report by eMarketer, “native programmatic advertising will account for over 63% of display ad spend by 2021“. This statistic highlights the importance of experimenting with ad formats to find the most effective approach to reach your audience.

Businesses can use data and analytics to track the success of different ad formats and placements. This information can help businesses adjust their strategy, allowing them to make better decisions that will improve their ROAS.

To identify the right ad format and placement strategy, businesses can start by identifying keywords that resonate most with their audience. Tools such as Google AdWords can help businesses to create a list of relevant keywords. The business can then set up an Excel spreadsheet to track their keyword clusters, making it easy to monitor which keywords are generating the most traffic.

Programmatic advertising is a constantly evolving space and it’s crucial for businesses to stay up-to-date with the latest trends and tactics in order to achieve the highest possible ROAS. In addition to the three key steps discussed earlier, there are several other tactics that businesses can utilise to maximise the potential of their programmatic campaigns.

How to re-target with programmatic ads

Retargeting is one such tactic. By using data to target customers who have previously engaged with the brand, businesses can increase their chances of conversion. According to a study by AdRoll, retargeting can result in a 147% higher conversion rate compared to non-targeted ads.

1. Criteo: “Retargeting can result in a 70% higher conversion rate compared to non-targeted ads.” Source: https://www.criteo.com/insights/retargeting-campaigns/
2. SalesCycle: “Retargeting can result in a 26% higher conversion rate compared to non-targeted ads.”
3. Digital Information World: “Retargeting can result in a 10x increase in conversion rates compared to non-targeted ads.” Source: https://www.digitalinformationworld.com/2018/05/remarketing-retargeting-infographic.html

Another way to improve conversion rates is by optimising landing pages. By ensuring that the landing page is relevant to the ad and is designed to encourage the desired action (such as making a purchase or filling out a form), businesses can significantly improve their chances of success. In fact, according to HubSpot, businesses with 40 or more landing pages generate 12 times more leads than those with only 1 to 5 landing pages.

How to A/B split test in programmatic ads

A/B testing is another powerful tool that can help businesses find the most effective approach for their programmatic ad campaigns. By experimenting with different ad copy and visuals, businesses can identify the combination that results in the highest conversion rates. According to a study by Unbounce, A/B testing can lead to a 49% increase in conversion rates on average.

Using keyword clusters in programmatic advertising

To identify keywords that are relevant to the target audience, businesses can conduct keyword research using tools like Google Keyword Planner or SEMrush. They can then group these keywords into clusters based on their similarity and relevance to create a content distribution and programmatic strategy that maximises the potential of their programmatic campaign. This can be tracked and managed using an Excel spreadsheet.

By implementing these tactics and continuously tracking and analysing the success of their programmatic campaigns, businesses can stay ahead of the curve and achieve the highest possible ROAS.

Programmatic advertising has revolutionised the way businesses reach their target audiences, and the potential for high returns on advertising spend is enormous. However, it can be challenging to navigate the vast and complex world of programmatic advertising, particularly when it comes to maximising the return on advertising spend (ROAS). As we have seen, there are several simple steps that businesses can take to increase their ROAS, from creating a keyword cluster strategy, using data and analytics to inform programmatic ad campaigns, and experimenting with different ad formats and placements.

But the potential benefits do not stop there. Utilising retargeting to reach customers who have previously engaged with the brand, optimising landing pages to improve conversion rates, and A/B testing different ad copy and visuals are just a few additional tactics that can help businesses maximise their programmatic advertising efforts.

With the right strategy and tactics in place, businesses can achieve higher ROAS and improve their bottom line. As the digital landscape continues to evolve, it is essential for businesses to stay ahead of the game and utilise the latest tools and techniques to ensure the success of their programmatic advertising campaigns.

In addition to the steps and tactics discussed above, there are tools available that can help businesses maximize their programmatic advertising efforts. One such tool is Launched SaaS, which not only enables programmatically distributing ads, but also content. By using a platform like Launched SaaS, businesses can increase their ROAS even further and provide more value to their target audience by delivering personalized and relevant content. This makes programmatic advertising an even more lucrative way for businesses to get more value and provide more value to their customers. With the right strategy and tools in place, businesses can reap the rewards of programmatic advertising and stay ahead of the competition.