Jan 12, 2023

Maximizing Your Programmatic ROAS

Rishabh Vishnoi

Maximizing Your Programmatic ROAS: Essential Strategies for Marketers


In the fast-paced digital advertising landscape, maximizing Return on Ad Spend (ROAS) is a
top priority for marketers. Programmatic advertising, with its automation and data-driven
strategies, provides significant potential for achieving high returns. However, optimizing
ROAS in programmatic campaigns isn’t just about running ads; it requires a deliberate, well-
informed approach that integrates advanced techniques, precision targeting, and constant
refinement. This blog outlines the most effective strategies to help marketers maximize their
programmatic ROAS and enhance overall campaign performance.


1. Leverage Data-Driven Targeting

Targeting is the foundation of a successful programmatic campaign. The more granular and
data-informed your approach, the better your chances of improving ROAS. First-party data—
gathered from CRM systems, website behavior, and email interactions—offers invaluable
insights into customer preferences and behaviors. Yet, many advertisers fail to fully
capitalize on their own data due to poor organization or a lack of structured analysis.
Implementing proper data analytics tools is essential to extract actionable insights from this
data.
Second- and third-party data sources are also crucial for expanding audience reach. Data
from external platforms such as DMPs and DSPs can enrich first-party data with behavioral
patterns, purchase history, and demographics. However, it’s important to carefully analyze
these external data segments to ensure they align with your campaign goals and avoid
unnecessary ad spend.
By blending first-party insights with external data, marketers can create detailed audience
profiles, allowing for highly personalized ad experiences. This not only improves
engagement but also reduces wastage, targeting the right audience with precision.


2. Implement Dynamic Creative Optimization (DCO)

Dynamic Creative Optimization (DCO) is a game-changer for marketers looking to enhance
ROAS. DCO enables the creation of multiple ad versions tailored to individual viewers,
based on data such as location, device type, browsing history, and even time of day. This
personalized approach significantly boosts engagement and conversion rates.
The success of DCO relies on more than just customization—it requires visually appealing,
relevant, and contextually suitable creatives. Regular A/B testing of different ad elements
(headlines, images, CTAs) helps identify which creative combinations work best for specific
audience segments. Utilizing advanced ad servers, like Flashtalking or Adform, can
streamline DCO efforts with cutting-edge technology that optimizes ad delivery in real-time.


3. Optimize Ad Placement and Frequency

Ad placement and frequency are pivotal to maximizing ROAS. Placing ads in premium
environments—well-trafficked websites and reputable apps—enhances viewability and
fosters consumer trust, increasing the likelihood of conversion. Conversely, placing ads on
lower-quality sites can damage brand perception and waste ad spend.
Equally important is managing ad frequency. Overexposure to the same ad can lead to user
fatigue, where potential customers either ignore the message or develop negative
perceptions of the brand. Implementing frequency caps ensures that your audience sees your ad the right number of times without being overwhelmed. This should be monitored
closely across DSPs to avoid bombarding users with repetitive ads.
Marketers should avoid the temptation to leave frequency caps unlimited, particularly in
retargeting campaigns. A balanced approach, supported by ongoing analysis of user
behavior, can help determine the optimal cap to keep the audience engaged without
crossing into ad fatigue.


4. Adopt a Multi-Device Approach

In today’s multi-device world, consumers frequently switch between smartphones, tablets,
desktops, and connected TVs. A successful programmatic campaign must account for this
fluidity by delivering consistent messaging across all devices. A seamless cross-device
strategy ensures that potential customers encounter your ads at various touchpoints along
their journey.
Each device requires unique considerations to maximize engagement. Mobile users, for
instance, may prefer shorter, punchier ads, while desktop users might be more inclined to
engage with interactive or long-form content. Video ads often perform better on larger
screens like desktops or connected TVs due to higher attention spans.
Cross-device attribution is crucial for tracking performance and understanding how users
interact with ads across devices. By optimizing campaigns for multiple screens, marketers
can fully capture user journeys and adjust strategies to deliver the best results.


5. Invest in Viewability and Attention Metrics

Achieving high ROAS isn’t just about serving ads—it’s about making sure they are seen and
engaged with by the right people. Viewability is a critical metric that measures whether your
ads are actually visible to users, while attention metrics track how long viewers engage with
your ads.
To improve viewability, marketers should focus on premium placements with a history of
strong viewability scores. Additionally, tools such as DoubleVerify and Moat offer advanced
metrics like "time in view" and engagement, helping marketers assess how well their ads are
performing in capturing user attention.
By optimizing for both viewability and attention, marketers can increase ad effectiveness,
delivering more value with every impression. This contributes directly to improved ROAS by
ensuring that your budget is focused on impactful placements.


6. Utilize AI and Machine Learning for Bid Optimization

Artificial Intelligence (AI) and Machine Learning (ML) have transformed programmatic
advertising, particularly in bid optimization. These technologies process vast amounts of
data in real-time, adjusting bids dynamically based on variables like audience behavior, time
of day, and device type. This automation leads to smarter, more efficient spending, reducing
costs and driving better results.
AI-powered DSPs can automatically adjust bids for maximum visibility, conversions, or
viewable impressions. By analyzing campaign performance continuously, machine learning
algorithms refine bidding strategies over time, optimizing for the best outcomes while
minimizing waste. Marketers should embrace these advancements to make data-driven
decisions and improve ROAS.

7. Prioritize Post-Campaign Analysis and Attribution
One of the greatest advantages of programmatic advertising is the wealth of data available
for post-campaign analysis. Understanding how different audience segments, placements,
and creatives performed enables marketers to refine their strategies for future campaigns.
Attribution models, such as multi-touch attribution (MTA), allow marketers to analyze each
step of the user journey and identify which touchpoints contributed to conversions. This
granular insight can help reallocate budget to the most effective channels and tactics,
ultimately improving ROAS.
Looking beyond immediate metrics, such as CTRs and conversion rates, marketers should
also consider long-term metrics like Customer Lifetime Value (CLTV). This ensures that
programmatic campaigns not only generate immediate returns but also contribute to
sustained business growth.


8. Mitigate Ad Fraud

Ad fraud remains a significant threat to maximizing ROAS. Fraudulent activities like bot
traffic, fake clicks, and ads being served in non-viewable areas can eat away at your budget
without delivering real results.
To safeguard campaigns from fraud, it’s essential to work with trusted partners that offer
advanced fraud detection and prevention tools, such as Integral Ad Science (IAS) or
DoubleVerify. Regular monitoring for suspicious activity and partnering with platforms that
prioritize fraud prevention can help ensure that your ads are served to genuine users in high-
quality environments.


Conclusion


Maximizing programmatic ROAS requires more than just running ads. It involves a multi-
faceted strategy that includes leveraging data, optimizing creative and placements, utilizing
AI, and continuously analyzing performance. By adopting these essential strategies,
marketers can increase efficiency, reduce ad wastage, and drive meaningful returns on their
advertising investments. In an era of heightened competition, mastering these tactics will
ensure long-term success in programmatic advertising.