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For over a decade, programmatic advertising has revolutionized the way businesses advertise and reach their target audience. As we venture further into 2023, it’s essential for automotive dealerships to understand the evolving landscape of programmatic advertising and how it can benefit their marketing strategies.


The Basics of Programmatic Advertising

At its core, programmatic advertising involves the automated buying and selling of digital advertising space using advanced technologies and algorithms. This method allows businesses, including dealerships, to place their advertisements in front of the right audience at the right time, maximizing the chances of conversions.


The Growing Influence of Programmatic

Industry forecasts show that 71% of digital ad spending in 2023 will be transacted programmatically. This includes traditional digital platforms and emerging channels such as Connected TV (CTV), Retail, and Digital Out of Home (DOOH). The increasing demand for these channels is mainly due to the need for advertising in premium settings, plus reaching audiences that are scattered by changes in traditional TV viewership.


The Benefits and Challenges

Programmatic advertising offers a range of benefits, including automation, real-time measurement, and sophisticated targeting. However, like any powerful tool, it comes with its set of challenges. Ad fraud, poor viewability, high costs, and brand safety issues have been persistent challenges in the programmatic world. Additionally, the push for data privacy and the diminishing role of third-party cookies may limit the extent to which advertisers can track and target individuals across the web.


What This Means for Dealerships

For automotive dealerships, understanding the intricacies of programmatic advertising can offer a competitive edge. As more consumers turn to online platforms for their car-buying journey, being present in the right digital spaces becomes crucial. Programmatic allows dealerships to precisely target potential car buyers, ensuring that their ads are seen by those most likely to convert.


Navigating the Programmatic Landscape

To make the most of programmatic advertising, dealerships should familiarize themselves with essential terms such as:

  • Ad fraud: The misrepresentation of ad impressions, clicks, and data to generate revenue.
  • Connected TV (CTV): Streaming video viewed on a smart TV or a device connected to the internet.
  • Digital Out of Home (DOOH): Dynamic advertising in outdoor environments.


Staying updated with the latest trends and technologies in Media will empower dealerships to craft more effective and efficient advertising campaigns. The Media team at Strong Automotive Merchandising leverages years of expertise to ensure you’re getting the highest number of results per dollar when you place with us.