Programmatic vs Performance Marketing

Programmatic marketing is a new trend in the digital marketing world. Many companies are opting for this method of allowing the program to do part of the advertising job for them. Even though the new technique is successful, it still has a few disadvantages.

Focusing solely on programmatic marketing may not be such a good idea for some companies. The good old performance marketing can be the best choice in some cases. Meanwhile, using both of them simultaneously is possible. So which one is best for your case? Programmatic marketing specialists at War Room examined the two approaches.

1. The ROI

Programmatic marketing has an impressive ROI if you overlook the possible disadvantages such as online fraud. Before the approach became popular, it was possible to take advantage of the machine-based advertising at a reasonable price. Today, the price has risen, as have the options. The ROI is still good for programmatic marketing even if the approach isn’t 100% solid.

The ROI of performance marketing is easier to see than for its programmatic counterpart. You pay only for what you get instead of spending money on possibly useless ads. Each click on the ad placed using performance marketing doesn’t lead to a conversion. However, the majority of such clicks are useful. Such is not always the case for those generated by programmatic marketing strategies. Meanwhile, the marketers can allocate the budget in a way that both short- and long-term sales get maximized.

2. Risk Of A Mistake

When it comes to programmatic marketing, the chances of seeing your ad in the wrong place are quite high. Especially, if there is redirection involved. However, programmatic marketing is still rather new so it’s bound to have a few “bugs”. With time, these mistakes should be taken care of.

With performance marketing, the chances of seeing your ad on the wrong website are close to zero. Affiliate marketing makes the job easier while costing less. Since the parties make an agreement about which websites the ad will be posted to, the marketing effort is always productive.

3. The Time Spent

When it comes to the time spent on advertising, programmatic marketing wins on all fronts. By automatizing the process, the marketing teams have more time to focus on other tasks. While the machine is doing human work, humans are busy with something a machine can’t do.

Performance marketing requires many things that programmatic marketing doesn’t. You need to invest time in searching for partners, negotiating with them, and monitoring the success of your effort.  However, while you are doing all that, you have a better control over the situation and minimize the risk of fraud.

Are They Compatible?

Both marketing approaches have their pros and cons. However, there is no law saying that you can’t use both. Choosing the right one for your campaign doesn’t mean considering only one option. Both programmatic and performance marketing can be used simultaneously within one marketing campaign.

Even though some marketing experts are against the programmatic marketing approach, it’s still making its way into the digital marketing world and is unlikely to leave any time soon.