Anna Vintsevska
Karolina BendrykReaching the right decision-makers in B2B marketing is challenging. That's when programmatic advertising kicks in, offering an efficient and data-driven approach, enhanced with precise targeting. How can B2B companies use programmatic strategies to precisely target business buyers, streamline media buying, and improve ROI? We will provide an answer to this and many other questions in this article.
Keep reading to explore the essentials of B2B programmatic advertising, its core principles, benefits, key platforms, and tips on running such campaigns. You will also get suggestions on how to avoid common mistakes and estimate the cost of your B2B programmatic advertising strategy precisely.
What is B2B programmatic advertising?
To start off, let's define B2B programmatic advertising. In brief, it is the automated process of buying and placing digital ads targeted specifically at business audiences with the help of real-time data and AI-driven platforms. The main distinction between B2B programmatic advertising and traditional ad buying lies in the use of digital tools and algorithms. Such solutions help advertisers deliver the most relevant ads to the right decision-makers. In the B2B context, such an approach focuses on reaching specific job titles, industries, and company sizes and delivering tailored messages to the audience based on this research.
How does B2B programmatic advertising work?
Let's take a closer look at the core principles of programmatic advertising B2B. Here is a simplified breakdown:
Publishers make their digital inventory available through supply-side platforms (SSPs). They typically set minimum prices and connect to ad exchanges where advertisers can place bids.
Advertisers use demand-side platforms (DSPs) to define budgets, audience segments, and bidding strategies. They typically use first-party data from customer data platforms (CDPs) or third-party data from data management platforms.
Once a user visits a site or consumes digital content, a real-time auction is launched. At this stage, multiple DSPs compete for the available impressions.
When the auction is over, the highest qualifying bid is selected as the winner. At this point, the ad is shown instantly to the targeted decision-maker.
During the next stage, ad performance is monitored and improved. Advertisers use data insights and AI tools to optimize ad targeting and increase engagement.
B2B Programmatic advertising platforms
At the core of every advertising transaction are two sides: the advertiser and the publisher. In B2B digital advertising, automation is the key to running the entire process more quickly and efficiently. Usually, this workflow is arranged with the help of a network of connected platforms. Let's explore the key components of such a network.
Demand-side platform (DSP)
A DSP is a tool that helps advertisers buy digital ad space automatically. They use demand-side platforms to connect to ad exchanges and enable B2B marketers to set audience criteria, such as industry, job title, online behavior, etc. Such a solution can automatically serve ads across channels like websites, mobile apps, and connected TV. DSPs can also become sources of analytical insights, helping companies ensure more precise targeting.
Supply-side platform (SSP)
While a DSP serves advertisers, an SSP is the primary tool for publishers. They use SSPs to list their available ad inventory, set pricing rules, and make the inventory accessible to ad exchanges. With an SSP, publishers can offer each impression to multiple buyers. This helps them maximize revenue through competitive bidding.
Ad exchange
Ad exchanges are typically used as digital marketplaces to help publishers and advertisers meet. The core functionality of such a solution is the ability to host real-time auctions. That is where ad impressions are sold to the highest bidder. This workflow can happen in milliseconds, and it efficiently distributes ads across various media and devices.
Ad network
An ad network is a platform that collects advertising inventory from multiple publishers and packages it for advertisers. Often viewed as an alternative to an ad exchange, ad network lags behind the latter in terms of transparency and bidding flexibility. Meanwhile, such solutions are often used for scaling campaigns efficiently across diverse audiences.
Real-time bidding (RTB)
RTB is the engine behind programmatic auctions. Once a user loads a page or opens an app, the available ad space is auctioned off to the highest bidder in real-time. RTBs allow advertisers to bid on individual impressions. This, in turn, increases the precision and efficiency across the campaign.
Data management platform (DMP)
A DMP is a solution that aggregates third-party data from different sources to ensure efficient audience segmentation. Typically, data management platforms consider traits like demographics, interests, and behaviors. Data provided by a DMP helps fine-tune campaign targeting and bidding strategies. It also makes ad delivery more relevant and cost-effective.
Customer data platform (CDP)
A customer data platform is a solution that unifies first-party customer data collected from the brand's interactions with actual and potential clients. It deals with information from such sources as CRM systems, websites, and apps. As a result, advertisers collect loads of first-party data insights in one place, which allows them to deliver more personalized and consistent experiences.
Benefits of B2B programmatic marketing
With B2B programmatic campaigns, marketers get a wide range of advantages. Let's explore the key benefits of such an approach in more detail.
More precise targeting of decision-makers
With programmatic platforms, advertisers can narrow their strategies down to key business audiences. Such an approach is based on firmographic data, such as industry, company size, or job role. In addition, programmatic technologies allow B2B advertisers to consider various behavioral signs and past engagement. By combining first-party and third-party data, campaigns can focus on high-intent prospects at critical moments in their decision-making journey.
More efficient media buying
One of the key benefits of programmatic advertising is the automation it brings. Programmatic platforms handle the buying process in real time. This approach reduces human intervention and ensures that ads are delivered where and when they are most likely to perform.
Real-time performance insights
As has already been mentioned, programmatic advertising in B2B facilitates a data-driven approach. It provides advertisers with access to live data. Marketers can retrieve useful insights that help them tweak campaigns on the go. Here it goes about adjusting budgets, refining targeting, and updating creatives based on what's working. As a result, advertisers can ensure stronger audience engagement and enhance conversion rates.
More efficient scalability across channels
Programmatic tools help businesses seamlessly distribute their ad campaigns across multiple platforms. This enables consistent messaging and broader visibility throughout the B2B sales funnel. All without the excessive complexity associated with managing cross-platform campaigns.
Smarter spending of advertising budgets
With programmatic technologies, businesses have better chances of focusing their budgets on qualified, high-value audiences. Data is used to guide every decision. As a result, programmatic advertising helps businesses minimize wasted impressions. This results in smarter budgeting strategies and, therefore, better return on investment.
Best strategies for B2B programmatic success
To get all the advantages of B2B programmatic marketing, make sure to apply smart strategies and best practices. Here we outline several tips that will help you plan, execute, and optimize such a campaign for maximum conversion.
Know your audience inside and out
To start an effective programmatic advertising campaign, gain a deep understanding of who you are targeting. It is essential to go beyond classic demographics. Make sure to map out your audience's roles, challenges, and goals. This will help you understand how your targeted business executives make decisions, allowing you to deliver more relevant messaging.
Define clear goals and KPIs
Make sure to set measurable objectives and key performance indicators from the beginning. With clear goals, you will face fewer challenges in evaluating campaign performance. A clear understanding of your objectives will also help you make more relevant and efficient real-time adjustments.
Partner with the right tech providers
The technical stack is crucial to the success of your programmatic advertising campaign. Select DSPs, SSPs, and data platforms that offer robust targeting capabilities. They should also possess strong analytical capabilities and transparent reporting. The right partners can significantly influence how efficiently and accurately your ads reach decision-makers.
Embrace data-driven campaigns
Leverage both first-party and third-party data to understand the behavior and intent of your target audience. With the right approach, you can achieve personalization that helps you boost engagement and increase the chances of conversion.
Diversify your approach
Experimentation is very important when it comes to B2B advertising. Dedicate part of your budget to test different creatives, formats, and platforms. This will allow you to discover the most relevant approach that will help you maximize return on ad spend. Just make sure to keep your messages consistent across different channels.
Safeguard your campaign from fraud
Ad fraud can be a problem that erodes your budget and spoils your performance data. It is crucial to work with vendors and tools powered with strong fraud prevention practices. Also, regularly review campaign activity to track whether your ads reach real users instead of bots.
Common mistakes to avoid in b2b programmatic advertising
Even if you apply the right B2B display advertising stack and have a well-crafted strategy, there may be issues that will spoil your campaign performance. Understanding these challenges, as well as ways for solving them, is essential for your brand's reputation and campaign conversion.
Poor data quality
Many companies fail to target the right audiences because they do not rely on clean and accurate data. Such issues as incomplete or outdated information are rather common in the programmatic advertising domain. They, in turn, lead to irrelevant impressions, low engagement, and reduced ROI. To fix this problem:
Rely primarily on first-party data from your CRM, website analytics, and customer touchpoints;
Work only with the most trusted providers of third-party data;
Run regular data audits, deduplication, and enrichment processes;
Use a customer data platform to centralize and analyze data from multiple sources.
Ad fraud and brand safety risks
As has already been mentioned, fraud is a common problem in the advertising domain. Here it goes about fake impressions that may negatively affect your analytical efforts. In addition, your ads may end up on low-quality or inappropriate sites, which might be damaging to your brand reputation. To deal with this problem:
Use fraud detection tools;
Create site whitelists and blacklists to control where your ads appear;
Opt for programmatic guaranteed deals for secure and pre-approved placements.
Steep learning curve
The programmatic advertising ecosystem involves a great range of tools, workflows, and data points. That's why crafting a programmatic advertising strategy may be a challenging task, especially for teams new to it. To cope with this challenge:
Start with focused campaigns on one channel or platform to build confidence;
Partner with experienced advertising agencies or use tools that provide the highest levels of automation;
Constantly learn by using training resources or attending webinars/conferences.
Difficulty tracking ROI
Due to the complexity of the programmatic advertising ecosystem, measuring return on campaign investment may be very challenging. To avoid common mistakes with ROI calculation:
Rely on platforms with advanced analytical capabilities;
Define key metrics upfront;
Run post-campaign reviews to get a complete picture of its upsides and downsides.
Ad fatigue from overexposure
Many advertising campaigns end up irritating the target audience. The problem is associated with repetitive ads that cause fatigue. This is especially relevant to longer B2B buying cycles. To avoid such an issue:
Set frequency caps to control how often the same user sees your ads;
Diversify your creatives, formats, and messages to ensure that your content is fresh and engaging;
Use dynamic creative optimization to deliver personalized advertisements based on user behavior.
How how much does b2b programmatic advertising cost?
The cost of B2B programmatic advertising varies widely depending on multiple factors. The most important ones are industry, targeting criteria, ad formats, chosen platforms, and ultimate campaign goals. In most cases, advertisers run this calculation based on CPM (cost per mille, also known as cost per thousand impressions). This cost may range from $1 to $50 or more. Some factors, like narrower targeting, the use of rich media and video ads, adtech platform fees, and the usage of high-quality third-party data, can make your final campaign cost mount.
Overall, use the traditional formula for calculating your programmatic budget:
Estimated Cost = (Total Impressions ÷ 1,000) × CPM
Keep in mind that this doesn’t include potential additional costs for creative production, data, or optimization services. To manage spending effectively, start with a small test budget. After that, you can monitor performance closely and scale your campaign based on ROI.
Consider TeqBlaze your trusted partner
To run impactful B2B programmatic ads, you need to rely on the most efficient adtech tools. Teqblaze, a company with unmatched experience in developing and configuring programmatic advertising technologies, is ready to help you. We can provide you with a highly efficient DSP, SSP, ad exchange platform, or any other adtech solution you need. Whether you need to develop a custom system from scratch or improve your existing practices with our special suite of services, Teqblaze is ready to help.
We have a rich portfolio of successful projects in the programmatic advertising domain. For example, we helped a programmatic advertising startup enhance its technological prowess and optimize marketing practices with our white-label DSP+SSP bundle. We also helped a U.S.-based marketing company that works with top brands swiftly launch its adtech company. By integrating their system with a white-label DSP solution, the client managed to reduce operational costs and establish new profitable partnerships.
Final word
Programmatic advertising for B2B helps you reach decision-makers faster and more accurately. Such an approach helps you automate many workflows and achieve greater accuracy in targeting and relevant messaging. By choosing the right approach, you can scale campaigns and get better results. The key point is using the right technical stack.
And if you need a reliable tech partner for efficient B2B business advertising, rely on Teqblaze. We have a massive industry experience and are ready to provide you with an efficient adtech solution to power your success.
