Waste of Traditional vs. Efficiencies of Programmatic Outlined in 1 Chart

Televisions lined up behind a retro-overlay.

Example of the difference between traditional and programmatic advertising.

Traditional channels — like television and radio — cover a much larger swath of communities than your primary market area (PMA). Because of this, your cost per thousand impressions (CPM) is not the cost to reach your targeted audience. You must account for waste, which comes in two forms:

  1. People outside of your target market, or PMA.
  2. People outside of your target audience.

When you account for the wasted budget to reach irrelevant potential buyers, each dollar that you spend is diminished in value. That means the actual cost to acquire the impressions of people who may actually visit your dealership to buy is much higher with traditional.

Programmatic channels — such as Facebook and video pre-roll — let you precisely target your audience by demographic and geographic qualities, as well as far more in-depth targeting unavailable with traditional media. That means there is no waste in spend that you must account for, so your CPM is the actual cost to get the impressions of your actual buyers.

Increasing Frequency

Consumers see thousands of ads each day. In a world of growing competition and shrinking gross profit margins, it’s important to keep spending in check. In order to have your ads delivered to your audience more often, you have a choice for how you do that:

  1. Traditional — Spend more money
  2. Programmatic — Be more specific with targeting

You can increase the number of times that your audience sees your ads through programmatic without spending an additional dime.

So, what’s your plan of attack to stimulate more interest in your brand?

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