10 Benefits of Programmatic Advertising for eCommerce Platforms

If you’re looking to improve your eCommerce platform, consider programmatic advertising. It can provide many benefits, including increased sales and improved ROI.


As eCommerce platforms continue to grow in popularity, so does programmatic advertising. The benefits of programmatic advertising for eCommerce platforms aren’t always clear, but one thing is certain: it’s here to stay.

According to a study by Insider Intelligence, programmatic advertising has now surpassed display and search as one of the best advertising platforms on mobile devices, and will only continue to grow in popularity in the future.

In this article, you’ll discover the top 10 benefits of programmatic advertising that eCommerce platform businesses should know about.

What is Programmatic Advertising?

Programmatic advertising is a form of marketing that uses computer automation to purchase ad space. It allows for real-time bidding on ad inventory and is considered to be more efficient than traditional methods of buying ad space.

With programmatic advertising, ads are bought and sold through an automated system, often using artificial intelligence (AI) algorithms. It can be used for all sorts of digital advertising channels, such as video or audio advertising. Programmatic advertising platforms are growing in popularity due to their effectiveness and efficiency.

How Programmatic Advertising Can Benefit Your eCommerce Platform

1. Flexibility

Programmatic advertising allows businesses to target specific consumers with laser precision, making the most out of every marketing dollar. Additionally, programmatic ad buying can be adjusted on the fly, meaning businesses can respond quickly to changes in consumer behavior. This flexibility is key for eCommerce businesses that need to be able to move quickly to stay ahead of the competition.


2. Optimization

By automating the process of buying and selling ad inventory, programmatic allows the best eCommerce platforms to optimize their ad spending in real-time. This means they can bid on ad space based on data-driven insights, rather than guessing how much they should spend.

As a result, programmatic advertising can help eCommerce platforms drive more sales (especially when it’s paired with a tool like the one in these Freshsales reviews). Additionally, programmatic ads can be targeted specifically to the demographics and interests of each individual user, which further increases the likelihood of conversion.

3. Scalability


Scalability is the ability to handle growing amounts of work or larger-scale operations.

As an eCommerce business grows, it’ll need to be able to handle more transactions, more products, and more customers. Programmatic advertising can help with this by automatically scaling up the advertisements to match the growth of the business.

This is important because if a business can’t keep up with its growth, it’ll eventually plateau and stop growing. With programmatic advertising, businesses can continue to grow steadily without having to worry about their advertisements being unable to keep up.

4. Targeting

As per a survey by Social Samosa, programmatic advertising is beneficial for the best eCommerce websites because it connects brands with the right audience.

For example, let’s say an eCommerce platform wants to target women between the ages of 25 and 35 who live in the United States and who are interested in fashion. With programmatic advertising, they can easily create a custom audience that meets those criteria and then serve ads directly to that group.

Not only does this type of targeting save time and energy, but it also ensures your ads are seen by the people who are most likely to be interested in them. In other words, programmatic advertising can help you get the most bang for your buck.


5. Speed

As eCommerce businesses continue to expand, so does the demand for faster and more efficient ways to advertise. Programmatic advertising is beneficial in this regard due to its speed. By automating the process of buying and selling ad space, programmatic advertising allows eCommerce platforms to operate at a much faster pace than traditional methods.

This speed is especially beneficial during peak times, such as holidays or sales periods, when traffic and conversions are high. Overall, programmatic advertising can help eCommerce platforms keep up with the demand and ensure their ads are seen by the right people at the right time.

For businesses aiming to optimize their online store’s potential, collaborating with a top-tier eCommerce Development Company can elevate the overall shopping experience and technical performance.

6. Data Management

Programmatic advertising is an effective way to manage data for eCommerce platforms. It allows businesses to collect and use customer data to improve targeting and deliver more relevant ads. This results in better customer experiences and increased sales.

This type of advertising also provides eCommerce businesses with valuable insights into customer behavior. This data can be used to improve website design, product offerings, and overall marketing strategy. In short, programmatic advertising is a powerful tool that can help in eCommerce management, making the business thrive.


7. Reach, Frequency, and Efficiency

By using programmatic advertising, eCommerce platforms can reach a larger audience with greater frequency and efficiency.

As mentioned earlier, programmatic advertising allows eCommerce platforms to target their ads to specific demographics, interests, and even locations. Additionally, it enables eCommerce businesses to show their ads more frequently than if they were using other methods of advertising.

The combination of reach, frequency, and efficiency makes programmatic advertising an attractive option for eCommerce platforms. By using this type of advertising, eCommerce platforms can increase their sales and brand awareness.

8. Contextual Ad Placements

Contextual ad placements are effective because they target ads to consumers based on the context of their online activity, rather than demographics. This prevents ads from being placed on sites where they’re not relevant and ensures that they’re more likely to be seen by consumers who are interested in the product or service.

eCommerce platforms that utilize programmatic advertising can use contextual data to target ads more effectively, resulting in increased sales and ROI. Contextual ad placements also allow eCommerce platforms to track the performance of their ads more accurately, and optimize them accordingly. In addition, programmatic advertising provides eCommerce businesses with a greater degree of control over where their ads appear, and how often they appear.

9. Performance Measurement

Performance measurement is critical for eCommerce platforms, as it allows them to track progress towards goals and identify areas of improvement. Programmatic advertising provides detailed data on ad impressions, clicks, and conversions, which can be used to measure performance. This data can be used to optimize campaigns and improve results over time.

10. Measuring ROI

With programmatic advertising, eCommerce platforms can collect data on things like how many people saw an ad, how long they viewed it, and what actions they took after seeing the ad (such as clicking through to the website or making a purchase). This data can then be used to calculate ROI and make adjustments to future campaigns accordingly.

The user data that can be collected through programmatic ad platforms also allows eCommerce businesses to track inventory and optimize ad delivery. In fact, a study from Marketing Week has shown that programmatic advertising can increase ROI by as much as 30%.

So if you’re looking to increase your eCommerce platform’s ROI and track inventory management efficiently, consider using programmatic advertising. It could be just the boost you need to take your business to the next level.

You can also use a free inventory software for maximum results.

Boost Your eCommerce Platform Sales with Programmatic Advertising

Programmatic advertising is a beneficial tool for eCommerce platforms. It allows them to be more efficient with their ad spending while also increasing the reach and frequency of their ads. Additionally, programmatic advertising provides platforms with valuable data that can be used to improve targeting and ROI.

If you want to boost your eCommerce platform’s sales, revenue, and brand awareness, programmatic advertising should be part of your marketing strategy now.

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