What Is Programmatic Advertising?

What Is Programmatic Advertising

More than 80% of the display ad spending by U.S. digital marketers is programmatic and the numbers have been increasing steadily. Marketers should strive to understand programmatic advertising to stay ahead of the competition.

Programmatic advertising is growing in popularity due to its efficiency in ad campaigns. However, the whole concept is quite complicated. Most marketers are not sure how to go about programmatic advertising.

If you’re among the digital marketers who have been wondering what programmatic advertising is all about, you’re in luck. Here’s a comprehensive guide that will explain programmatic advertising and its benefits.

What Is Programmatic Advertising?

Programmatic advertising refers to the real-time selling and buying of digital ad space in an automated bidding system. Through programmatic advertising, you can purchase an ad impression on different publishers’ sites. Your data will determine the performance of your ad.

Traditional advertising approaches are manual and inefficient. Programmatic is automatic. You don’t have to waste time with negotiations and requests for proposals.

Programmatic advertising, just as the name suggests, uses a program to buy an ad slot. Artificial intelligence evaluates your cookie data, demographic information, and behavior. It then determines how your ad will be displayed.

The targeting tactics in programmatic advertising use real-time data to segment your audience. Advertisers use the demand-side platform (DSP) to drive the purchase of ads. They also utilize the data management platform (DMP) for third-party data.

On the other hand, publishers use the supply-side platform (SSP), which is essential in managing ad inventories. They then determine the ads that have won the bids.

Programmatic advertising and Google ads have stack differences. You can check out the Google ads vs. display ads through the BPRISE platform to understand how the strategies differ. The quality of results is one of the main differentiating factors.

Programmatic advertising is keen on targeting. It is easier to prompt conversion through this method. Conversely, most of the other digital marketing techniques aren’t too focused on targeting.

How Does Programmatic Advertising Work?

Marketers ought to understand programmatic advertising before delving in. Programmatic advertising connects advertisers and publishers. Advertisers are marketers who want to promote a brand, while publishers are website owners selling ad space.

If you want to promote your product through a digital campaign, you start by contacting your programmatic ad agency. The agency will then use a DSP, which automates the process of ad buying. The DSP will enable you to buy ad inventory from several publishers.

With the demand-side platform, your ads will be targeting the right audience. The targeting is through the data management platform that controls audience data. DMP takes into account user behavior, demographics, online activity, and location.

This method ensures that you’re are not wasting your ads on users who aren’t interested in your products. As such, most of the clicks will lead to conversion. Consequently, your sales will grow.

When a target lands on the publisher’s site, it sends an ad request to the SSP. The supply-side platform (SSP) is what the publisher uses to sell your ads. The SSP is responsible for the auction process, where the DSP is usually connected.

The DSP evaluates the data to know if an ad matches the target. This process determines the bidding price. The exchanges, which seem complicated in a theoretical explanation, occur in real-time. This process takes milliseconds to complete!

Once the impression is sold, the publisher displays the ad on the website. The process repeats itself every time a user visits the site. Programmatic ad buying will guarantee you results over time as more consumers search the internet.

Benefits of Programmatic Advertising

Media ad spending is projected to grow by 60.5% by 2023. You might want to consider programmatic advertising as part of your strategy. Here are the benefits of programmatic advertising that you stand to enjoy;

Real-Time Evaluation

Programmatic adverting measures results in real-time. Programmatic advertising can measure the performance of a campaign immediately after launching. With the results, you can make modifications to improve performance.

With traditional advertising, you can only get the results after the campaign. You might end up wasting money on a campaign that’s not working. Programmatic advertising will help you know when to change tactics.

Better Targeting Capabilities

Targeting is an aspect that makes programmatic marketing unique. The importance of advertising to the right audience can’t be emphasized. With programmatic advertising, you’ll only be reaching out to your desired audience.

This form of advertising uses IP targeting, geolocation targeting, and contextual keywords to reach the right people. The internet has millions of users, and not everyone is interested in your products. You should consider programmatic advertising for better targeting.

The click-throughs might be fewer at first. However, they mostly lead to conversions. Retargeting will further increase your chances of increasing relevant leads.

Transparency

Google advertising uses algorithms that you might never understand. However, programmatic advertising is one of the approaches with the utmost transparency.

Targeting takes into account a user’s browsing habits, buying patterns, device, and brand loyalty. You can track the sites where your ad is reaching. More importantly, you’ll see the consumers viewing the ad. The transparent process makes it easier to invest your resources in the right place.

While the process might seem complex, you’ll have all the information necessary. This transparency allows you to make changes if your ad isn’t performing as per your expectations.

Programmatic Advertising Can Be a Game-Changer in Your Digital Marketing

Many marketers who want to start programmatic advertising don’t know how to go about it. Once you understand how programmatic marketing works, you’ll realize it’s not as complex. However, you might want to work with professionals if you’re unsure how to go about the whole process.

The benefits of programmatic advertising, such as better targeting, transparency, and real-time measurements, are worth pursuing. If you want to increase your revenue, programmatic advertising is an approach that will interest you. Partnering with the right agency is the best move.

Do you want to increase your audience with data-driven marketing? Contact us today for programmatic advertising services.