Oct 4, 2024
Efficiency in Programmatic
Tanmaya Darjee

Efficiency in Programmatic: Tools and Techniques for Smarter Spending
Programmatic advertising has revolutionized how marketers approach digital campaigns. By
using automation and data-driven techniques, programmatic makes it easier to deliver
targeted ads at scale. However, with its rapid growth, the risk of inefficiencies has also
increased, leading to wasted budgets and suboptimal results.
To truly harness the power of programmatic, it’s essential to focus on efficiency. In this
guide, we’ll explore the tools and techniques that can help you spend smarter, drive better
results, and achieve more with your budget.
The Importance of Efficiency in Programmatic Advertising
Inefficiency in programmatic campaigns often stems from common pitfalls, such as poorly
defined audience segments, lack of real-time optimizations, and inadequate use of available
tools. These challenges can:
● Inflate ad spend unnecessarily.
● Lower return on ad spend (ROAS).
● Reduce campaign performance and audience engagement.
By integrating smart tools and techniques, you can avoid these traps and ensure your
campaigns deliver maximum impact.
Tools for Smarter Programmatic Spending
1. Demand-Side Platforms (DSPs)
DSPs like Google DV360, The Trade Desk, and MediaMath are essential for managing
programmatic campaigns. These platforms offer:
● Real-time bidding (RTB) capabilities to target the right impressions at the right
price.
● Advanced reporting and analytics to monitor performance.
● Features like frequency capping and audience exclusions to prevent inefficiencies.
2. Data Management Platforms (DMPs)
DMPs help centralize audience data and create actionable insights. Platforms like Adobe
Audience Manager and Lotame enable marketers to:
● Build precise audience segments using first-, second-, and third-party data.
● Avoid audience overlap and duplication.
● Refine targeting for better ROI.
3. Creative Management Platforms (CMPs)CMPs like Celtra and Bannerflow make it easy to produce dynamic, engaging ad creatives.
With tools to test, optimize, and personalize ads, CMPs ensure your creative assets drive
better engagement without increasing costs.
4. Viewability and Attention-Tracking Tools
Efficient spending is not just about impressions; it’s about meaningful impressions. Tools like
Moat, DoubleVerify, and IAS help track:
● Viewability rates (benchmark: 70%+ for display).
● Attention metrics like scroll depth, hover time, and interaction rates.
● Placement quality, ensuring your ads appear in premium environments.
5. Algorithmic Bidding Solutions
Platforms like Smartly.io and custom bidding algorithms within DSPs enable automated
bidding based on campaign goals. These solutions dynamically adjust bids based on real-
time data, saving time and reducing costs.
Techniques for Smarter Spending
1. Set Clear Campaign Goals
Every campaign should start with well-defined objectives, whether it’s increasing awareness,
driving conversions, or boosting ROAS. These goals will determine your:
● Key performance indicators (KPIs).
● Budget allocation.
● Bidding strategies.
For instance, a brand-awareness campaign might focus on impressions and reach, while a
performance campaign prioritizes CPA or ROAS.
2. Implement Audience Segmentation
Smart targeting is crucial to avoid wasted spend.
● Use first-party data to identify your highest-value customers.
● Segment audiences based on their behaviour, intent, and demographics.
● Regularly refresh data to maintain relevance and accuracy.
3. Optimize Bidding Strategies
Inefficient bidding often leads to overspending.
● Use dynamic bidding to adjust your bids based on user engagement and inventory
quality.
● Avoid placing fixed bid caps that may prevent you from securing high-value
impressions.
● Prioritize viewable impressions by bidding higher for inventory with better
viewability scores.
4. Monitor and Adjust Frequency
Ad fatigue can result from excessive frequency, while too few impressions may fail to leave
an impact.
● Implement frequency caps to limit the number of times an individual sees your ad.
● Adjust caps dynamically based on campaign goals, such as higher frequency for
retargeting.
5. Leverage A/B Testing
Testing multiple variables ensures you’re optimizing spend effectively.
● Test different ad creatives, formats, and messaging.
● Experiment with targeting strategies and placement types.
● Use results to refine your campaigns and eliminate underperforming elements.
6. Embrace Multi-Channel Integration
To maximize efficiency, your programmatic campaigns should align with other marketing
efforts.
● Integrate insights from social media, search, and email marketing campaigns.
● Ensure consistent messaging across all channels.
● Use cross-channel attribution to measure true performance.
7. Regularly Audit Campaigns
Periodic audits are essential to identify and resolve inefficiencies.
● Review underperforming placements and exclude low-quality sites.
● Check for audience overlap and refine targeting as needed.
● Monitor spending patterns to avoid over-investing in underperforming strategies.
Metrics to Monitor for Efficiency
To ensure smarter spending, keep a close eye on these key metrics:
● Viewability Rate: Indicates whether your ads are being seen. (Benchmark: 70%+)
● CTR: A measure of engagement. (Benchmark: 0.05%-0.1% for display)● Frequency: Ensures balanced ad exposure.
● CPA/ROAS: Tracks cost-effectiveness and revenue generation.
● Attention Metrics: Assesses the quality of interactions.
Final Thoughts
Programmatic advertising thrives on efficiency. By leveraging the right tools and adopting
smart techniques, you can optimize your campaigns to deliver better results with less waste.
As the landscape evolves, staying informed and proactive will be key to maintaining a
competitive edge. Focus on your goals, measure your performance diligently, and adapt
your strategies to maximize every pound you spend.