The influence of programmatic advertising on ad efficiency: A study of a digital media agency in Port Harcourt, Nigeria
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Background of the study
Programmatic advertising has transformed the digital media landscape by automating the buying and placement of ads, leading to enhanced efficiency and precision in targeting audiences. Digital media agencies in Port Harcourt, Nigeria, are increasingly adopting programmatic methods to optimize ad spending and improve campaign performance (Chukwu, 2023). This automated process leverages algorithms and real-time bidding to serve the right ad to the right user at the right time, significantly reducing the inefficiencies associated with traditional media buying (Ifeanyi, 2024). Programmatic advertising not only streamlines operations but also provides comprehensive data analytics that inform future marketing strategies. As the digital economy expands, the role of programmatic advertising becomes increasingly critical in maintaining competitive advantage and ensuring the effective allocation of marketing resources. However, issues such as ad fraud, lack of transparency, and data privacy remain major concerns for digital media agencies. This study aims to explore the influence of programmatic advertising on ad efficiency within a digital media agency in Port Harcourt. It examines how automated ad buying processes enhance targeting precision, reduce costs, and improve overall campaign performance. The research further investigates the challenges and potential risks associated with programmatic methods and offers insights into best practices for maximizing ad efficiency in a rapidly evolving digital marketplace (Onyema, 2025).
Statement of the problem
Digital media agencies in Port Harcourt encounter several challenges in adopting programmatic advertising to achieve optimal ad efficiency. Despite its potential to streamline ad placement and reduce costs, issues such as ad fraud, data privacy concerns, and a lack of transparency persist (Chukwu, 2023). These obstacles hinder the full realization of programmatic benefits, affecting campaign performance and overall return on investment. Furthermore, the rapid evolution of technology necessitates continuous adaptation and innovation, making it difficult for agencies to maintain up-to-date practices. This study investigates these challenges, seeking to understand the gap between theoretical advantages and practical implementation. The goal is to provide strategic insights that can help digital media agencies overcome these limitations and improve ad efficiency (Ifeanyi, 2024).
Objectives of the Study
To evaluate the impact of programmatic advertising on ad efficiency.
To identify the challenges and risks associated with programmatic advertising.
To propose strategies for optimizing programmatic ad buying processes.
Research Questions
How does programmatic advertising improve ad efficiency in digital media agencies?
What challenges affect the implementation of programmatic advertising?
How can digital media agencies overcome these challenges to enhance campaign performance?
Significance of the study
The study provides critical insights into programmatic advertising’s ability to enhance ad efficiency. Its findings will guide digital media agencies in optimizing ad spending and campaign strategies. Additionally, the research informs industry best practices by addressing challenges and offering data-driven recommendations for improved ad performance (Onyema, 2025).
Scope and Limitations of the Study
This study is limited to investigating the influence of programmatic advertising on ad efficiency within a digital media agency in Port Harcourt, Nigeria.
Definitions of Terms
Programmatic Advertising: Automated ad buying using algorithms and real-time bidding.
Ad Efficiency: The effectiveness of advertising campaigns measured by reach, engagement, and return on investment.
Digital Media Agency: A company that specializes in creating and managing digital advertising campaigns.
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