Mid-size brands often struggle with programmatic ads due to limited budgets, lack of expertise, and difficulty managing campaigns across multiple platforms. However, programmatic advertising offers a way to reach the right audience at the right time using automation and data-driven strategies. Here’s how mid-size brands can make it work:

• Start with clear goals: Define specific objectives and measure success with KPIs like CPA, CTR, or CPC.

• Leverage multi-channel campaigns: Run ads across platforms like Connected TV, mobile, and display to meet customers wherever they are.

• Use automation wisely: AI tools optimize performance in real-time, reallocating budgets to high-performing areas.

• Focus on targeting and reporting: Combine customer data with external insights and demand detailed reports to track ROI effectively.

• Prioritize ad quality: Test and refine creative assets to ensure they resonate with your audience.

Avoid common pitfalls like over-relying on automation, neglecting ad quality, and accepting vague reporting. Programmatic advertising can simplify complex processes and deliver measurable results when executed with the right tools and strategies.

172. Marketecture Live Takeaways: Privacy, Diversity, and Identity Discussion with Shannon Rudd...

Problems Mid-Size Brands Face with Programmatic Advertising

Programmatic advertising has undeniable advantages, but for mid-size brands, the road to success is anything but smooth. Unlike large enterprises with specialized teams or small businesses leveraging simpler tools, mid-size brands face a unique set of challenges that often make programmatic efforts feel overwhelming and less effective.

Getting Started is Difficult

For most mid-size brands, the biggest challenge is simply figuring out where to begin. Programmatic advertising involves navigating a maze of platforms, data integrations, and technical setups - all of which require expertise that many mid-size companies lack. Without in-house programmatic specialists, marketing teams are left to decipher DSPs, DMPs, and complex attribution models on their own.

The learning curve can be daunting. Marketing managers who are skilled in traditional advertising often need to quickly get up to speed on advanced concepts like audience segmentation, real-time bidding, and cross-device tracking - all while juggling their usual responsibilities.

Campaigns often span multiple channels, including display, video, Connected TV, and mobile. Each of these channels comes with its own technical and creative requirements, making it easy for efforts to become fragmented without proper oversight.

On top of that, many mid-size brands struggle with technical tasks like setting up tracking pixels, collecting first-party data, and integrating CRM systems. These challenges are only made worse by tight budgets, which limit access to external expertise.

Limited Budget Impact

Mid-size brands typically operate with annual ad budgets ranging from $50,000 to $500,000. While this is a significant investment, it pales in comparison to the resources available to larger competitors, creating several hurdles in the programmatic space.

For instance, higher bids tend to secure premium ad placements on high-traffic websites. Enterprise brands with million-dollar budgets often dominate these auctions, leaving mid-size companies with lower-quality inventory.

Platform fees are another obstacle. Many programmatic platforms require a minimum spend - sometimes as high as $10,000 per month - just to access their services. For a brand with a $100,000 annual budget, these fees can quickly eat into their resources before any ads even run.

Additionally, large advertisers often benefit from direct deals and preferred partnerships with publishers, which allow them to secure better rates. Mid-size brands, on the other hand, typically pay standard rates, missing out on these cost-saving opportunities.

Budget constraints also limit testing and optimization. While larger brands can experiment with multiple campaign variations simultaneously, mid-size brands are often forced to test one approach at a time. This slower pace delays the discovery of successful strategies and hampers overall performance.

Tracking and Improving Performance is Hard

Performance tracking and optimization are another major pain point for mid-size brands. Without dedicated analytics teams or advanced tools, many struggle to measure the effectiveness of their campaigns.

While most programmatic platforms offer basic reporting, linking ad performance to real business outcomes requires advanced attribution models. Unfortunately, many mid-size brands lack the tools needed to track customer journeys across multiple touchpoints, making it difficult to assess the true impact of their efforts.

Real-time optimization also poses a challenge. Programmatic campaigns thrive on continuous adjustments based on performance data, but this requires constant monitoring and quick decision-making. For marketing teams already stretched thin, giving campaigns the attention they need often isn’t feasible.

Adding to the complexity, reporting is often fragmented across various platforms, each with its own metrics and formats. Consolidating this data into actionable insights is a time-consuming process that many mid-size brands simply can’t manage effectively.

Without a clear understanding of what’s working, brands risk wasting money on underperforming campaigns or missing opportunities to scale successful ones. Instead of delivering growth, programmatic advertising can end up draining budgets - underscoring the need for a streamlined, data-driven approach tailored specifically for mid-size brands.

What Makes Programmatic Advertising Work for Mid-Size Brands

Programmatic advertising can deliver impressive results for mid-size brands when backed by the right tools, strategies, and expertise. At its core, success relies on three key factors that turn programmatic efforts into a growth powerhouse.

Running Ads Across Multiple Channels

Today's customer journey is anything but linear, which is why mid-size brands must take a multi-channel approach to advertising. By running campaigns across platforms like Connected TV, display ads, mobile, and digital out-of-home, brands can meet their audience wherever they are - whether it’s streaming a favorite show, scrolling on a smartphone, or noticing a digital billboard. This strategy creates multiple touchpoints, reinforcing brand messaging and increasing the chances of conversion.

Cross-channel retargeting plays a crucial role here as well. It helps guide potential customers from that first moment of awareness to taking action, all while ensuring ad budgets are spent wisely and efficiently.

Automatic Performance Improvements

Another major advantage of programmatic advertising is its ability to automate performance optimization using artificial intelligence and machine learning. These advanced systems analyze audience behavior, ad placements, and creative elements in real time, reallocating budgets to the most effective areas without delay [1].

This kind of automation is a game-changer for mid-size brands that often operate with limited resources. AI tools not only handle the heavy lifting but also eliminate waste by filtering out low-quality impressions before any money is spent [1]. Unlike traditional methods that could take days or even weeks to adjust, real-time optimization ensures campaigns are always performing at their best [1].

Accurate Targeting and Clear Reporting

The third pillar of success is precise targeting paired with transparent, actionable reporting. For mid-size brands, reaching the right audience with the right message at the right time is non-negotiable.

Access to extensive data partnerships - often pulling from hundreds of sources - allows brands to go beyond basic demographic targeting. By incorporating behavioral data, purchase intent, and lookalike modeling, campaigns can zero in on individuals most likely to engage with the brand.

But targeting is only half the equation. Clear reporting is essential for understanding campaign performance and making informed decisions. Metrics like conversions, customer lifetime value, and return on ad spend go beyond surface-level clicks and impressions, providing the insights needed to justify investments and scale efforts effectively.

When these three elements - multi-channel strategies, automated optimization, and precise targeting - work together, programmatic advertising becomes a powerful tool for mid-size brands. It simplifies complex processes, maximizes efficiency, and provides the clarity needed to drive meaningful growth.

How to Build a Programmatic Advertising Strategy That Works

Once you've tackled the common challenges, it's time to focus on setting clear objectives to build a programmatic advertising strategy that delivers results. Companies that take the time to lay a solid foundation often see far better outcomes than those who dive in without a clear plan.

Define Your Goals and Success Metrics

The first step in any effective programmatic campaign is translating your business goals into specific, actionable digital objectives. A great way to do this is by following the SMART framework - Specific, Measurable, Achievable, Realistic, and Time-bound [2]. For example, instead of saying, "We want more customers", aim for something more targeted, like, "Increase qualified leads by 25% within the next quarter" or "Gain 10,000 new email subscribers by the end of the fiscal year."

Once your goals are clear, identify the metrics your team will use to measure success. These should align with your campaign's Key Performance Indicators (KPIs). Different objectives require different KPIs: for awareness campaigns, focus on metrics like Cost-Per-Thousand (CPM) impressions or Click-Through Rate (CTR). For driving traffic, Cost-Per-Click (CPC) is key. If your goal is conversions - such as sign-ups or purchases - you'll need to carefully manage costs while tracking actions like Cost-Per-Acquisition (CPA).

Keep in mind that a single campaign may have multiple objectives and KPIs depending on your overall goals and budget. The clearer your objectives, the easier it will be to measure and optimize your performance.

Combine Customer Data with External Insights

Your existing customer data is a treasure trove for building detailed audience profiles. Start by analyzing your current customers to uncover patterns in demographics, purchasing behavior, seasonal trends, and how they engage with your brand.

But don’t stop there. Add external data to broaden your reach and gain a deeper understanding of market trends. This could include behavioral signals, purchase intent data, and lookalike modeling to find potential customers who share characteristics with your current audience but haven’t interacted with your brand yet.

Segment your audiences based on where they are in the customer journey. For example, new prospects need different messaging than loyal customers. Tailoring your approach to each segment ensures you’re delivering the right message to the right people at the right time. Once your audience segments are refined, the next step is creating ads that truly grab their attention.

Prioritize Strong Ads and Constant Testing

Even with the best data and targeting, your campaign won’t succeed if your ads don’t connect with your audience. High-quality, relevant ad creative is what turns impressions into clicks and clicks into conversions. That’s why investing in both the development of your creative assets and ongoing optimization is so important.

Develop multiple versions of your ads by experimenting with different headlines, images, calls-to-action, and messaging angles. Use performance data to identify which combinations resonate most with specific audience segments. Also, adapt your creative to the platform - what works for a video ad on Connected TV may need adjustments for mobile or digital out-of-home formats.

Plan your testing cycles carefully. A one- to two-week period is typically enough to gather meaningful data. Track the results of each test and apply those insights to future campaigns. For example, if ads featuring customer testimonials consistently outperform product-focused ones, that’s a clear signal to lean more heavily on testimonials moving forward.

Think of creative testing as an ongoing process. Regularly update your messaging, explore new formats, and refine your approach based on real-world performance data - not assumptions. This continuous cycle of testing and learning will keep your campaigns fresh and effective.

Mistakes to Avoid in Programmatic Advertising

Even with a well-thought-out plan, mid-size brands can still hit roadblocks when running programmatic campaigns. These missteps can drain your budget and throw off your results. Spotting these issues early can save both time and money.

Trusting Automation Too Much

Automation is one of programmatic advertising’s biggest advantages, but relying on it entirely can backfire. Automated bidding and optimization tools are powerful, but they aren’t a substitute for human judgment. Without oversight, your campaigns might drift away from your business goals.

Pair automation with regular human monitoring. Especially in the early stages of a campaign, keep an eye on performance metrics like costs, conversions, and audience engagement. If you notice sudden cost spikes or underperforming audiences, it’s time to step in. Algorithms are great at optimizing for predefined metrics, but they don’t account for strategic nuances. For example, if you’re running a short-term promotion, algorithms won’t know to prioritize spending early to maximize impact before the deadline. That’s where human intervention makes all the difference.

Set up automated alerts for critical metrics, but don’t rely on the system to fix itself. If an alert is triggered, act immediately. A quick manual adjustment - like tweaking bids or refining your audience - can prevent your budget from being wasted.

Using Poor Quality Ads

No matter how advanced your targeting is, weak ads can sink your campaign. Some brands focus so much on audience data and bidding strategies that they neglect the creative side, which often leads to poor outcomes.

Low-quality ads result in low engagement and higher costs. Common mistakes include using generic stock photos that fail to connect with your audience, writing vague headlines that don’t highlight your value, or creating ads that aren’t tailored to specific platforms. For example, an ad that looks fine on desktop might be hard to read or interact with on a mobile device, which is where a large chunk of programmatic impressions are served.

Test your ads across devices before launching your campaign. Mobile optimization is especially critical. Ads that perform well on a desktop might flop on mobile if they’re not easy to read or click on. Make sure your creative resonates with platform-specific audiences. For instance, an ad shown during morning news might need a different tone than one displayed during evening entertainment, even if they’re promoting the same offer.

Not Demanding Clear Results

Accepting vague reports from your programmatic partners can leave you in the dark about how your budget is being spent. Without detailed insights, it’s nearly impossible to optimize your campaigns effectively.

Request detailed reporting that breaks down where your ads are being shown - whether it’s specific websites, apps, or TV programs - and provides insights into the quality of those placements. Reports should include granular data, such as performance by time of day, device type, geographic location, and audience segment. For example, if your cost per acquisition is higher on weekends, you’ll need that information to adjust your strategy.

Be wary of partners who only provide high-level summaries or are reluctant to share placement details. Transparency is essential for programmatic success. Detailed, actionable reporting allows you to identify what’s working, what’s not, and how to refine your campaigns for better performance.

Conclusion: Growing Your Business with Programmatic Advertising

Tackling the challenges outlined earlier can turn programmatic advertising into a powerful growth engine for mid-size brands. For instance, cross-channel integration can deliver 287% higher conversion rates compared to single-channel campaigns [5]. Real-world results back this up - Demandbase customers who combined Connected TV and display ads saw a 46% increase in domains visited and a 54% boost in clicks [3].

But success isn't just about avoiding common pitfalls; it's about leveraging automation effectively. Real-time optimization ensures ad spend is directed toward high-performing audiences and placements while pulling back from areas that underperform. And let’s not forget the importance of creative messaging - 72% of consumers engage only with ads that feel personalized [4]. If your ads don’t speak directly to your audience, even the best targeting won’t deliver the results you’re after.

Another key to success lies in transparent reporting. Detailed insights into ad placements allow for smarter budget allocation and strategy refinement. The numbers speak for themselves - businesses using data-driven marketing strategies achieve 5-8x the ROI compared to those that don’t [5]. These practices enable mid-size brands to break free from the constraints of traditional advertising.

For brands looking to grow beyond the limits of conventional marketing, programmatic advertising offers a clear path forward. Its combination of cross-channel reach, automated optimization, and detailed performance analytics opens up growth opportunities that simply weren’t available a few years ago. The key is partnering with providers who understand your business’s unique challenges and can deliver the transparency, quality, and results needed to stand out in today’s competitive landscape.