What’s Programmatic Advertising for Contractors?

Your phone rings with a new customer who needs an emergency plumbing repair. They found you through a display ad that showed up at exactly the right moment, on exactly the right website. 

That’s not luck. It’s programmatic advertising at work.

For contractors and home service pros, putting programmatic ads in front of the right customers makes all the difference. Get it wrong, and you’re left with a dwindling client list. Get it right, and you could end up with a packed schedule.

Programmatic advertising makes it possible by taking out the guesswork. It automatically places your ads where they’ll have the biggest impact. 

What Is Programmatic Advertising?

Programmatic advertising uses technology to automate bidding for advertising space. This article will focus on display advertising, one of the most effective types. It includes things like banner images and video ads.

Programmatic advertising removes the need for manual negotiation and paperwork. Instead, smart software makes decisions about where to place your programmatic ads in real time.

Here’s how it works at a high level. When someone visits a website, the system analyzes who they are and what they’re interested in. This happens instantly. If they match your target customer profile, your display ad might appear on that page before it even finishes loading. The whole process takes less than a second.

But there’s a catch. You have to compete for display advertising space. Once a consumer clicks on a publisher’s website, the publisher immediately puts the ad impression up for auction. Software called demand-side platforms then bid based on advertisers’ campaign parameters. The highest bid wins, and the display ad goes right to the user.

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4 Types and Methods of Digital Programmatic Advertising

There are a few different methods for buying programmatic advertising space. Each one offers unique advantages for contractors:

1. Real-Time Bidding (RTB)

Real-time bidding, or RTB, lets advertisers take part in instant auctions for display advertising. Your programmatic ads compete with other advertisers in real time. This is one of the most cost-effective ways to reach customers. The bidding happens automatically through demand-side platforms.

Key factors that set RTB apart include:

• Competitive pricing structure
• Open access to all advertisers
• Instant ad display after winning a bid

2. Preferred Deals

This option gives advertisers the first pick of premium ad spots. You can choose the best placements before they go to auction. And it’s flexible—there’s no obligation to commit. These deals offer:

• First-look access to inventory
• Direct collaboration with publishers
• The opportunity to choose premium spots
• Flexible purchasing options

3. Programmatic Direct

With this method, you lock in ad placements ahead of time. It works well for contractors who want guaranteed visibility in places like local news sites or home improvement platforms. Benefits include:

• Fixed prices
• No auction bidding
• Guaranteed impression volume
• Predictable ad placement

4. Private Marketplace Deals

There are exclusive ad networks for buying display advertising and other types of ads. You get access to premium websites that aren’t available to everyone. Private ad exchange marketplaces come with:

• Premium ad inventory
• Higher costs but better quality
• Specific placement options
• Limited scale compared to RTB

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Why Does Programmatic Media Buying Matter for Home Service Pros?

If you’re looking to grow your business, you can’t afford not to take advantage of programmatic advertising. Here’s what you get:

Targeted Local Reach

You can focus your display advertising on specific service areas. Programmatic advertising platforms let you get as detailed as targeting homeowners versus renters. That means your display ads reach only people who might actually hire you.

Cost-Effective Customer Acquisition

You only pay when your display ads show up in front of customers. The system automatically adjusts your bidding to get the best value.

Real-Time Flexibility

You can change your advertising based on weather, seasons, or local events. For example, if you’re an HVAC contractor, you can increase your display advertising efforts during heat waves and cold spells.

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4 Benefits of Programmatic Marketing

Programmatic advertising boasts a slew of benefits:

1. Efficiency. Programmatic advertising saves a lot of time. It takes care of most of the manual parts of buying display ads for you. You don’t have to negotiate with individual websites or process paperwork manually.
2. Broad Reach. Programmatic advertising can be displayed across multiple platforms and devices. Reach customers wherever they spend time online.
3. Transparency. You know exactly where your display ads appear. Plus, you get detailed reports about your digital advertising performance.
4. Precise Measurement. Track exactly how your display ads perform in real time. This includes metrics like impressions, clicks, and conversions. This data helps you make smart decisions about where to aim your media buying budget.

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Drawbacks of Programmatic Marketing

Programmatic advertising has a lot going for it. But there are some disadvantages to watch out for, too:

Commoditization

Most programmatic advertising uses standard formats. This leads to similar ad formats across platforms, which can make it harder for your display ads to stand out.

Ad Fraud Risks

Some websites use fake traffic to steal advertiser budgets. Others hide your programmatic advertising where no one will see it. Common types of fraud include:

• Bot traffic viewing ads
• Domain spoofing with fake websites
• Click farms with paid human clickers

Technical Complexity

Learning how to use demand-side platforms to interact with programmatic ad exchanges takes time. Many advertisers partner with marketing experts to handle the technical details.

Transparency Challenges

Without the right settings, your display ads might appear on inappropriate websites. You’ll need to use brand safety tools to control where your programmatic advertising shows up.

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How Does Programmatic Advertising Work for Contractors?

Here’s what to keep in mind so your efforts work smoothly:

1. Understand Your Options

Research different ad exchanges and ad networks, like Google AdX, OpenX, and Xandr. Make sure your chosen platform has the targeting options you need.

2. Set Clear Goals

Define what you want to achieve with your programmatic advertising campaign. Track key performance indicators like:

• Reach. This is the number of unique users who see your display ads.
• Impressions. This is the number of times your programmatic ads are shown.
• Click-Through Rate (CTR). This is the percentage of consumers who click your programmatic ads.
• Cost Per Click (CPC). This is the average cost per click.
• Cost Per Acquisition (CPA). This is the average cost to get a customer.

3. Maintain Quality

Keep a close eye on your programmatic advertising campaigns. Make manual adjustments as needed and respond quickly to the data.

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3 Types of Programmatic Advertising Platforms

Here are some of the platforms that fall under the programmatic advertising umbrella. These are the types of services you can choose from when managing your programmatic advertising campaign:

1. Demand-Side Platforms (DSPs)

DSPs help advertisers buy programmatic advertising inventory efficiently. They offer:

• Advanced targeting options
• Real-time bidding capabilities
• Performance tracking tools

2. Supply-Side Platforms

SSPs help website owners manage and sell their programmatic advertising space. They connect to ad networks and exchanges to help publishers manage their workflows by:

• Maximizing revenue
• Setting bidding price floors
• Providing detailed real-time analytics

3. Ad Exchanges

Ad exchanges connect advertisers with websites that sell programmatic advertising space. They make real-time bidding possible for ad placement. Some of their key features include:

• Supporting different ad formats
• Connecting networks of SSPs and DSPs
• Providing transparent pricing

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4 Tips for Using Programmatic Advertising Successfully

Use these pro tips to start your campaign on the right foot:

1. Plan Your Strategy Carefully. Start with clear objectives for your programmatic media buying efforts. Think about who you want to reach and when. Set a realistic budget.
2. Focus on Relevant Audiences. Use data to find your ideal customers. Target based on factors like location, home ownership, and recent online activities.
3. Monitor and Optimize. Watch your programmatic advertising campaign performance daily. Make adjustments based on what the data tells you. Test different versions of your ads and track key metrics.
4. Plan for Seasonal Changes. Adjust your programmatic advertising based on typical seasonal patterns. Increase spending during your busy season and scale back your ads when demand naturally slows down.

Stay Organized and Manage Customers on the Go With Joist

Once your programmatic ads bring in a host of new customers, you’ll need an easy way to keep track of them. That’s where Joist comes in.

Store, access, and export customer information from anywhere, at any time. Keeping track of customers and jobs just got that much easier.