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Top 3 Reasons to Invest in Programmatic Advertising for FMCG brands



We’re all living in times of pandemic with the virus having a palpable impact on consumer behavior, media houses, agencies, and businesses alike. Marketing strategies and planning which seemed relevant two weeks ago may come off as jarring today. Marketers cannot simply ‘set-it-and-forget-it’.  For brands, it has become more important than ever to interact with their audience in innovative and non-intrusive ways.

In the current times, there are only a few channels available at a brand’s disposal to communicate with their audience. Not only this, the messaging and the creative design have to be structured in a way that maintains a healthy balance between ‘brand recall’ and not appear to capitalize on the global pandemic.

The solution is to adopt new technology with Programmatic advertising topping the charts. It is one such technology that puts the control of spending in the hands of the marketer/advertiser. Businesses ranging from large enterprises to SMBs, there has been a wide adoption and increased appetite for data-driven strategies, thus paving a successful growth and optimism for programmatic advertising. They are using the platforms more frequently to reach consumers who are spending more time inside and online.

Programmatic advertising has become the proven tool to garner customers, increased engagement and awareness for FMCG brands. Personalization is the word of the decade, leveraging programmatic data; brands can use these data points to generate extremely personalized content for their consumers. For FMCG brands, it is all about catering to consumer’s interest and affinities. .

Having laid the foundation, let us move on to further understand the top 3 reasons to invest in programmatic advertising:

Relevant and Contextual ad settings

A major chunk of the population use ad-blocking tool to avoid being bombarded with unwanted and repetitive ads. Offers which long expired; adverts which serve no purpose to the user, event passes which have already been bought, and many more such cases of advertising are rampant, thus neglecting a consumer’s privacy (ultimately making them lose trust in the brand).

In the case of programmatic advertising, the platform uses CRM and customer loyalty data to increase relevance thus ensuring that the ad reaches the intended audience. Using native ads to create a positive experience for a user, it mimics the look and feel of the web page thus bringing contextual alignment to the ad being served.

Ads served in a Brand Safe environment

Brand safety has lately become a topic of discussion on a global scale. A major concern and a nightmare for brand managers, they have to constantly be vary of the fact that their ads are not displayed next to objectionable or offensive material which can compromise the brand. Programmatic advertising helps in reducing the likelihood of such instances and keeps a check on the ad being shown at unwanted places thus increasing brand safety. The platforms have specialized teams to screen ad inventory and remove objectionable ones.

Ad-Fraud Reduction

Ad fraud has been a challenge that continues to haunt businesses and marketers alike. A major chunk of display ads is lost to unwanted and invalid traffic thus wasting the ad budgets. In a country like India where advertising is a major industry, the ad-fraud rate is even higher.

Investing in programmatic advertising helps to eliminate cases of ad fraud by giving the publisher complete control on the targeting parameters such as geography, interest, audience, etc. The platform can also block bots and other types of fraud thus reducing budget wastage and giving value-driven and focused results.

Although, programmatic advertising does not eliminate ad-fraud completely because the platform makes decision (based on several predefined criteria) in less than a second. Given the fact that such rapid decision-making process cannot be monitored by humans in real time, such campaigns maybe susceptible ad fraud. But programmatic advertising becomes the go-to choice vis-à-vis traditional advertising to reduce the possibility of fraud.

With the recent announcement of Third-party cookies making an exit, programmatic advertising will inherently see advancements in technology, become more sophisticated, a shift in ways the audience is targeted, and brands getting smarter to ensure transparency with the consumer by seeking effective and efficient solutions to better interpret online consumer behavior. This being said, programmatic advertising is the future of digital marketing to ensure the optimum utilization of budget and enabling a data-driven automated approach to marketing.

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