AD TECH INSIGHTS
by Roman Vrublivskyi
Posted on Dec 21, 2023
Precision Targeting Tactics for Effective Campaigns
by Roman Vrublivskyi
by Roman Vrublivskyi
In advertising, precision targeting plays a crucial role. It enables marketers to reach their potential customers, so the ads are more effective in terms of driving conversions and income.
At the same time, you, as an ad exchange owner, also need precise targeting capabilities to match DSPs and SSPs and ensure the effective performance of your platform. And the more effective it is, the higher your income gets.
In this guide, we will dive into the nuances of precision targeting and provide you with some ideas on what features to equip your ad exchange with.
First and foremost, let us clarify the precision targeting meaning. For advertisers, media precision targeting is a technique involving using customer data and targeting ads toward different segments of consumers. It allows high personalization and relevance and ensures the effectiveness of an advertising strategy.
For instance, marketers can target their audience on the basis of age, gender, location, behavior patterns, etc. For them, the more targeting settings a DSP platform offers, the better since they can ensure precision targeting marketing.
In programmatic, it works like this. An advertiser sets up targeting via a DSP platform. Then, after the auction takes place on an ad exchange, the ad is delivered to those users who meet the requirements and are most likely to convert.
In turn, non-targeted advertising implies delivering ads to random user segments. The ROI of such ads, most often, is incredibly low.
In terms of ad exchanges, targeting works differently. You are not responsible for specifying the demographics and other characteristics of the customers. Instead, you need to ensure a reliable connection between your SSP and DSP partners.
For example, you may want to set up ad formats and traffic types for each so advertisers with banner ads and desktop traffic can easily reach publishers who meet these requirements.
To identify targeting options for your ad exchange, you can start by analyzing your competitors. This would be helpful in any case since, with the collected insights in mind, you will be able to make your platform more effective and attractive for DSP and SSP partners.
However, there are several basic options to consider.
Integrating ad format targeting is virtually a must to match SSPs and DSPs efficiently. These can be banner, video, CTV, audio, and other ads. The more formats you add, the more deals will become available, which is good for your trading income.
Traffic type targeting options may include desktop, mobile web, in-app, and other settings. Your ad exchange should support multiple traffic types to ensure proper performance.
If your ad exchange platform allows setting ad sizes and dimensions for your partners, it will deliver the ultimate visual experience to users. This is good for all the parties involved. While advertisers will have higher conversion rates, publishers will provide compelling ads to their website visitors or app users. As for you, your income will increase.
Last but not least, consider adding geo-targeting capability to your ad exchange. This way, when your DSP partner requests traffic, it will receive it exactly from the requested location.
After you identify the essential targeting capabilities for your ad exchange and integrate them into your platform, test them to ensure that everything works as it should.
Note that it is also essential to monitor the performance of your ad exchange thoroughly. If something goes wrong, you will be able to react on time.
Building an ad exchange from scratch is expensive and time-consuming. However, there is an alternative — you can go for the SmartHub white-label solution. This is a ready-made ad exchange. Instead of coming up with a development strategy, finding experts who will work on your project, and so on, you will be able to start trading after a couple of days.
On SmartHub, multiple targeting types are already incorporated into the platform. They are as follows:
Apart from this, there are multiple traffic filtering options, including blocked categories, adult traffic filtering, etc. For SSPs, you can also select relevant categories, like technology, travel, etc.
By setting up endpoints for your partners, you ensure precision advertising via your ad exchange. Therefore, your income will grow.
With SmartHub, you can start trading straight away; the platform is fully ready. However, the SmartHub’s team is always ready to meet your on-demand requests to maximize the performance of your solution.
This is exactly what SmartHub did for Take1ads, which resulted in 585% revenue growth.
Does SmartHub look like a perfect solution to you? Then contact us!
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