What is Programmatic Advertising?

Programmatic Advertising?

In its most basic form programmatic is just buying ads online through a computer interface without human intervention.

Programmatic advertising has been around since the dawn of the digital web. Google Adwords launched in 2000 and followed this with its own display ad network (AdSense) in 2003. You set up your campaign criteria (budget, bid price, targetin. And other criteria) and the computer decides what ad space to buy and how much to pay for it.

Types of Programmatic Marketing

Real-time bidding (RTB)

With real-time bidding, you have the ability to purchase advertising space via digital auctions that are occurring in real-time. Sometimes referred to as an open auction, RTB is when the prices of ad inventory  determined via these live auctions. Any publisher or advertiser can participate in RTB. For individuals hoping to purchase online advertising with a large audience, RTB can be a cost-effective option.

Private marketplace (PMP)

Although private marketplaces are similar in structure to RTB, they restrict who is allowed to participate. Access is on an invite-only basis, and in some scenarios, an application/selection process allows advertisers the opportunity to join. While an auction usually occurs, the set-up requires more manual involvement because the deal’s terms are pre-negotiated.

Programmatic direct

For those that prefer to opt-out of auctions altogether, programmatic direct is an alternative. In this type of programmatic advertising, publishers offer ad inventory at a fixed cost per mille (CPM) to advertiser(s). Programmatic direct  most often used for premium inventory, such as full-page takeover ads.

Ad exchange

An ad exchange can considered the Etsy of programmatic advertising. It’s a marketplace where publishers and advertisers can come together to buy and sell ad space. Usually the ad space bought through real time auctions, and most companies will use a demand-side platform to handle all the bidding.

What are the Benefits of Programmatic Advertising?

• Increased audience reach: It’s thought that roughly half of the world’s population is on the internet at any moment. Through targeting efforts above, while you won’t be able to capture all of those impressions. You can ensure your ads can be seen by thousands to millions of targeted users.That will find your ads potentially relevant to them.
• More in-depth targeting: As we said above, programmatic advertising and programmatic ad buying platforms give advertisers incredibly in-depth targeting capabilities to ensure your ads get in front of the right audiences at the right time, no matter who they are and where they are in the world.
• Real-time measurement: As soon as your ads are live, you’ll be able to see in-depth data that helps you build. And execute the best programmatic advertising campaign possible. For instance, you’ll be able to see how many impressions your ad got, the websites it appeared on, the types of audiences that saw it, and how much traffic / many conversions your ad has driven to your website, all as it happens.

• Greater efficiency: Bottom line – programmatic advertising makes your marketing dollars work more efficiently to drive more ROI through more in-depth targeting. Control over where your ads are being show. As well as the sheer audience size you’re able to choose from.
• Increased control: Programmatic advertising gives marketers more control over who sees their ads. Where they see them, how often they’re seeing them. And when they are seeing them, driving more ROI to your marketing dollars. Most programmatic advertising platforms give advertisers a list of where their ads are appearing, the types of audiences that are seeing their ads, as well as costs of those placements along important KPIs to help make important business and strategy decisions on the fly.
• Automated: Again, whether you’re an advertiser or publisher, the whole process automated. Meaning (minus check ins and tweaks to drive higher ROI) you can set up your campaigns or ad space and hit “go”. Your DSP or SSP will handle the rest.