B2B Programmatic Advertising is an automated buying and selling of digital advertisements targeted specifically at (B2B or business-to-business) rather than individual consumers (B2C). The question arises: does programmatic advertising effectively translate to B2B marketing? In simple terms: indeed, it does! However, it’s slightly complicated.
Programmatic advertising in the B2B context involves the use of technology and data to streamline the process of ad buying, and deliver ads to businesses and professionals in a more efficient manner.
The process uses automation, data-driven marketing insights, and real-time bidding to create more efficient and effective B2B marketing campaigns. In recent times B2B programmatic advertising has become an intriguing and evolving field matching the unique demands of the growing B2B landscape. In this article we will dive into its current state and potential future:
B2B Programmatic Advertising: Current Landscape
Since this type of advertising is a subset of programmatic advertising that focuses on reaching a business audience here are some of the key trends that are shaping the market:
- Rise of personalized and targeted advertising: B2B marketers are increasingly using artificial intelligence (AI) and machine learning algorithms, which can help to identify and segment audiences based on their interests, demographics, and online behavior. Due to increased focus on making ads more personalized these targeted ads are more relevant to users, as they are based on their preferences and behaviors. This relevance increases the likelihood of user engagement and conversions.
- Adoption of account-based marketing (ABM): ABM is a strategic approach to B2B marketing that focuses on targeting a small number of high-value accounts. This is again done by using data and insights to identify the decision-makers who are involved in the buying process and then creating personalized marketing campaigns that are specially designed to reach and influence them.
- Omnichannel approach: B2B marketers are recognizing the importance of using multiple channels to reach their target audience. This means using a combination of digital channels, such as social media, search engine marketing, email marketing, and content marketing, to create a cohesive and integrated advertising strategy.
- Growing importance of video advertising: Video is becoming increasingly popular in the marketing. This is because video can be a very effective way to tell a story, demonstrate a product or service, or educate potential customers. More and more businesses are focusing on attracting consumers through powerful stories using visuals.
- Adaptation to Privacy Regulations: With increasing data privacy regulations, your B2B programmatic media partner is navigating a landscape that demands transparency and compliance. Businesses are embracing consent-based data collection, adopting technologies that prioritize user privacy, and refining strategies to align with evolving regulations.
As the market continues to evolve, we are expecting to see even more innovation and new ways to reach and engage B2B audiences.
LinkedIn is a popular example for the platform with B2B marketers to use programmatic advertising. It offers a variety of targeting options, such as industry, job title, and company size, which allows marketers to reach their target audience with relevant ads.
B2B Programmatic Advertising: Future Trends
The Rise of connected TV (CTV)
CTV is the next big frontier for programmatic advertising. CTV refers to the streaming of video content to internet-connected devices, such as smart TVs, streaming sticks, and gaming consoles. As more and more consumers cut the cord and switch to streaming services, the CTV market is growing rapidly.
The rise of CTV is creating new opportunities for programmatic advertising. CTV offers a number of advantages over traditional TV advertising, such as:
- Measurable results: CTV ads can be tracked and measured, so businesses can see how their campaigns are performing.
- Efficiency: Programmatic advertising can help advertisers save time and money.
As a result of these advantages, programmatic advertising is becoming increasingly popular in the CTV market. In 2022, programmatic CTV ad spend reached $16.7 billion, and it is expected to grow to $28.0 billion by 2025.
Besides the need of personalized advertising by businesses other reasons for the rise of programmatic CTV advertising:
- The growth of streaming services: The number of streaming services is growing rapidly, and this is driving the growth of the CTV market.
- The increasing popularity of smart TVs: Smart TVs are becoming increasingly popular, and this is also driving the growth of the CTV market. The estimated number of smart TVs in households worldwide is expected to reach 2.2 billion by 2025.
The Growth of Programmatic Guaranteed
Another notable advancement within the programmatic realm is the remarkable growth of “Programmatic Guaranteed.” This innovative approach is revolutionizing the way ad inventory is bought and sold, offering a new level of efficiency, transparency, and control for both businesses and consumers
Programmatic Guaranteed is being embraced by a wide range of industries, including e-commerce, travel, finance, and more. Brands that prioritize premium ad placements, personalized targeting, and brand safety find PG particularly advantageous. There are a number of reasons for the growth of programmatic guarantees.
First, it offers businesses a way to get the guaranteed reach and frequency they need, while still being able to target their ads to specific audiences. Second, it can help advertisers save time and money, as the buying process is automated. Third, it can help business owners improve the transparency and efficiency of their ad campaigns.
Additionally, publishers benefit from guaranteed revenue streams and the ability to establish strong relationships with advertisers.
Increasing Use of First-Party Data
First-party data is information collected directly from a company’s own sources, such as their website, CRM systems, email lists, and customer interactions. It provides valuable insights into customer behaviors, preferences, and engagement patterns, allowing businesses to create hyper-targeted and relevant advertising campaigns.
The increasing use of first-party data in B2B programmatic advertising is a game-changer. Businesses that harness the power of their own data can create campaigns that resonate with their target audience, drive engagement, and ultimately lead to higher conversion rates.
As the digital landscape continues to evolve, first-party data stands as a foundational asset that enables brands to navigate the complexities of B2B marketing with precision and impact.
Development of New Measurement Standards
Traditional measurement metrics often fall short in capturing the nuanced effectiveness of programmatic campaigns.
That’s where the multifaceted nature of programmatic advertising comes into play with—spanning diverse platforms, ad formats, and audience segments reflecting its detailed reporting. As this advertising landscape matures, businesses seek accurate ways to gauge the impact of their campaigns and ensure optimal returns on investment.
The development of new measurement standards is known to transform how effectiveness is tracked, enabling advertisers to navigate the complexities of programmatic advertising with precision and confidence.
Focus on transparency
Transparency stands as the cornerstone of ethical and effective programmatic advertising. As the industry continues to evolve, the spotlight on transparency has grown bigger, urging businesses, publishers, and technology providers to uphold a higher standard of accountability.
In a landscape where complexity and data-driven decisions reign, embracing transparency becomes a crucial factor in building trust, fostering collaboration, and achieving long-term success. Some known significance of transparency are as follows:
- Building Trust: Transparent practices establish trust between advertisers, publishers, and consumers. Trust is the foundation of healthy and enduring relationships in the digital advertising world.
- Minimizing Risk: Transparency mitigates risks associated with brand safety, ad fraud, and non-compliance. Advertisers can make informed decisions when they are aware of potential pitfalls.
- Enhancing Collaboration: When all stakeholders operate transparently, collaboration becomes smoother. Businesses can work closely with publishers and technology partners to create more effective campaigns.
- Ethical Responsibility: Transparency is an ethical responsibility. Advertisers have an obligation to consumers to deliver authentic, relevant, and non-deceptive advertising experiences.
Industry initiatives, such as the Ads.txt and Sellers.json frameworks, have been introduced to increase transparency in the programmatic ecosystem. These frameworks aim to prevent domain spoofing, unauthorized inventory sales, and non-transparent supply chains.
As technology continues to advance and consumer behavior evolves, the B2B advertising landscape will undergo transformational shifts. These trends, ranging from AI-powered targeting to personalized experiences and enhanced measurement standards, reflect the industry’s dynamic nature.
Advertisers and B2B businesses, armed with insights and innovative strategies, are poised to navigate these trends to create impactful, relevant, and engaging campaigns that resonate with their target audience. As we embrace the future, the opportunities for growth, collaboration, and success in B2B programmatic advertising are boundless.