A comparative study of programmatic advertising versus traditional PPC on conversion rates: Evidence from a digital ad agency in Kaduna, Nigeria
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Background of the study
Programmatic advertising and traditional pay-per-click (PPC) remain two prominent methods in digital marketing for driving conversions. This study compares the effectiveness of programmatic advertising versus traditional PPC on conversion rates for a digital ad agency in Kaduna, Nigeria. Programmatic advertising uses automated technology and data analytics to target specific audiences in real time, while traditional PPC relies on manual campaign management and bidding strategies (Eze, 2023). In Kaduna, where digital competition is fierce, understanding the nuances of each approach is critical. The study examines factors such as targeting precision, cost efficiency, and campaign scalability. It also evaluates metrics like click-through rates, conversion rates, and ROI to determine which method delivers better performance under varying market conditions (Afolabi, 2024). Additionally, challenges such as data integration issues and the learning curve associated with programmatic tools are discussed. Overall, the research aims to offer comparative insights that inform digital advertising strategies and optimize conversion outcomes for agencies in evolving digital markets.
Statement of the problem
Digital ad agencies in Kaduna face uncertainty in selecting the most effective advertising method to maximize conversions. Despite the potential advantages of programmatic advertising, traditional PPC remains prevalent due to familiarity and established practices. Inconsistent performance metrics, high costs, and challenges in data integration create ambiguity regarding the superior approach for driving conversions. This study addresses these issues by comparing programmatic and traditional PPC strategies to determine their relative impact on conversion rates (Eze, 2023; Afolabi, 2024).
Objectives of the Study
To compare the conversion rate performance of programmatic advertising and traditional PPC.
To identify key factors influencing the effectiveness of each advertising approach.
To recommend strategies for optimizing digital ad campaigns to maximize conversions.
Research Questions
How do programmatic advertising and traditional PPC compare in terms of conversion rates for a digital ad agency in Kaduna?
What factors most significantly influence the performance of each method?
How can digital ad agencies optimize their advertising strategies to improve conversion outcomes?
Significance of the study
This study is significant as it provides empirical insights into the comparative performance of programmatic advertising and traditional PPC. The findings will help digital ad agencies in Kaduna select and optimize the best advertising method to maximize conversions and ROI. The research contributes to the digital marketing field by offering data-driven recommendations for campaign optimization (Afolabi, 2024).
Scope and limitations of the study
The study is limited to comparing programmatic advertising and traditional PPC within a single digital ad agency in Kaduna, Nigeria, and does not extend to other regions or advertising methods.
Definitions of terms
Programmatic Advertising: Automated buying and placement of digital ads based on real-time data.
Traditional PPC: Pay-per-click advertising managed manually through bidding on keywords.
Conversion Rate: The percentage of users who take a desired action after clicking on an ad.
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