Programmatic ad optimization can make or break programmatic campaigns – but exactly what does it look like in practice? Today, we’re talking about programmatic optimization and breaking down all the basics, including:

• What programmatic optimization is
• How to optimize programmatic ads
• Why your programmatic advertising campaign performance might be missing the mark

There are plenty of factors that can contribute to the success of any given programmatic ad campaign, ranging from the initial strategy to the post-launch refinements. But even with an outstanding ad crafted by a talented team and flawlessly launched, your ad won’t get far without consistent optimization efforts.

No matter how well-designed a campaign may be, there’s simply no such thing as “set it and forget it” when it comes to effective programmatic ads. Programmatic optimization is a marketing must – and we’re going to explain exactly how to start implementing it now.

What is Programmatic Optimization?

Programmatic ad optimization is the process of utilizing data (such as audience segments) to make intentional improvements in real-time to the performance of your programmatic advertising digital campaigns. The optimization process is what empowers you to maximize your marketing efforts and put your ad spend to the best possible use for successful campaigns.

In the most basic of terms, there are three steps in the optimization process for programmatic advertising campaigns:

1. Create and launch a programmatic ad.
   • Note: This is a great time to implement pre-optimization, which leverages data from previously-run campaigns and/or platforms such as Google Analytics. The data can be used to your advantage, ensuring that your new programmatic display advertising campaign is based on factual information and given a head start.
2. Have a clear, measurable campaign goal and primary KPI (key performance indicator). All of your optimization points (such as audience insights, device, creative, contextual, operating system, etc.) should connect back to this specific metric.
3. Set up a system for gathering data. This could be something as simple as utilizing a built-in analytics platform.
4. Evaluate the data and look for patterns to inform your optimizations. As you collect data, you’ll likely see a definitive pattern emerging.
   • For example, a few e-commerce sites may produce a better conversion rate on desktop versus mobile. So, you can adjust your bid factors to be higher on desktop and lower on mobile, or even block mobile if there is a dramatic difference in ad performance.

Repeat. From here, you’ll continue the process throughout the duration of the ad campaign. Try not to make too many changes at once because that can make it difficult to figure out what’s working and what isn’t in the customer journey purchase funnel. Instead, think of it as an ongoing project, not a “one and done” job.

The Importance of Scale

Scale is among the most important considerations in the ad optimization process. Remember, the amount of ad inventory available to you is not limitless. Every targeting layer and aspect changes just how much of the inventory will be available to you, so set your scale with this in mind.

Here’s an example of scale in action: Let’s say you wanted your ad campaign to target U.S. sports fans anywhere on the web. In that scenario, you’re working on a massive scale. Zoom in on sports fans that are visiting sports-related webpages on their mobile device within a specific city, and your scale shrinks to match.

In some cases, you might want to aim for a larger scale to expand your ad reach. Other times, when the ad inventory is plentiful, you might be able to afford to narrow your scale for more precise targeting. Your potential ad spend will play a big part in making this decision. Ultimately, the goal is to implement scale in a way that achieves an ideal balance between delivery/reach and targeting.

Select the Right Audience

The most successful programmatic ads all have one thing in common: they are precisely targeted at the right online users at the exact right time. If you want to optimize your programmatic ads, your strategy must be based on a clear understanding of your target audience. Otherwise, your aim could be off – and your ad won’t perform the way you want it to.

So, what do you need to know about your audience? At the very least, you should be staying on top of:

• Basic demographics such as age, location, and income
• Likes and dislikes
• Typical behaviors
• Psychographics

With this information, you’ll gain the ability to pinpoint the impressions that will pay off.

Quality

Imagine learning that all of the time you spend perfecting your programmatic ad campaign was essentially wasted, all because of one thing: quality. The quality of your ad inventory can have a massive impact on your results and be the difference between effective ad spend and money being thrown away.

Programmatic media buying has become one of the top strategies for businesses of all sizes and types, and it’s only expected to increase in popularity. As the competition gets more intense, keeping a close eye on the quality of your ad inventory is more important than it’s ever been before.

Are Your Programmatic Ads Working?

It’s not unusual for a business owner to feel confused as to why their programmatic display campaign efforts aren’t hitting their goals, so if you’ve ever been there, you definitely aren’t alone. There are a few common challenges in programmatic advertising that you should be aware of so that you’re prepared to combat them as effectively as possible:

1. Ad fraud: As technology advances at a rapid rate, unfortunately, so does fraud. In the arena of programmatic ads, ad fraud makes it impossible to differentiate between robots and humans viewing your impressions. Bots can throw off the optimization process and leave you feeling frustrated. Thankfully, Google display network and other third-party platforms are working diligently to eliminate the issue as quickly as possible.
2. Fraudulent click-through rates (CTR): CTR fraud can wreak havoc on your display ad marketing budget, not to mention the analysis necessary for optimization. Some simple steps you can take to catch and reduce fraudulent CTR include:
   • Avoid open or unmonitored inventory, and stick with a “defensive buying” approach.
   • Make use of pre-bid contextual data segments in the buying process.
   • Keep a universal blacklist of domains to stay away from, as well as a whitelist of domains you will target
3. Low-quality ad inventory: Without knowing exactly where your ads are going, it can be easy to fall victim to subpar standards for inventory. This is why many people are opting for professionally managed programmatic marketing, turning the task over to a team of experts who can execute successful bidding strategies. With an experienced marketer on your side, you can consider sharpening your focus on the Demand Side Platform (DSP) or even switching to programmatic direct, depending on your goals.

Don’t Set It and Forget It

We’ve said this already, but it bears repeating: programmatic advertising is an ongoing process that requires your consistent attention and participation in order to succeed. Optimization might be something as simple as setting up a split test to learn more about your audience, or it could end up as involved as a complete creative redo. But when you regularly invest in optimizing your ads, the payoff is more than worth it.

Ready to Take Your Programmatic Ads to the Next Level?

Cultivating well-performing programmatic ads for your cannabis business can be a challenge in more ways than one. Why not take advantage of the expertise, resources, and time that a cannabis digital marketing agency can offer?

Marijuana Marketing Xperts is an industry-leading cannabis ad agency partnering with a wide range of canna-businesses who want to see their marketing budget allocation and efforts flourish. From programmatic marketing (including expert ad optimization!) to social media, we can help you meet and exceed your goals.

Connect with the MMX team to start implementing a savvier strategy for programmatic display advertising and cannabis digital marketing today!

Featured Image: BestForBest, TarikVision, Lightspring, Iurii Motov, and Amnaj Khetsamtip/Shutterstock