What is Programmatic Advertising? What is Programmatic Advertising?

What is Programmatic Advertising?

September 24, 2018  |  7 min read  |  by Epom

Programmatic advertising is among the fastest growing fields of online marketing. It's expected to make about half of digital ad sales by the end of the year. It's clearly the future of advertising thanks to its numerous benefits.

If you haven't already jumped the bandwagon, it's time to take the leap, let's talk more about programmatic advertising. We'll answer questions like what is programmatic advertising and how programmatic ads can benefit you.

What is Programmatic Advertising?

Programmatic advertising, also known as programmatic ad buying, is one of the fastest growing methods of online advertising. It includes automated buying and selling of online ads.

The programmatic ad buying process involves a buying agency that bridges the gap between publishers and advertisers to make programmatic advertising possible.

The programmatic advertising process uses a technology, such as real-time bidding and AI to make programmatic ads a reality. Programmatic ads are not only used in the digital medium but on television as well.

It uses a bidding mechanism to automate numerous processes involved in ad buying. These include buying, placing, and optimizing the ads.

We hope you got your answer to the 'what is programmatic advertising?' question. Let's now talk about how programmatic ad buying works.

How Does Programmatic Advertising Work?

Programmatic advertising works by using different technologies, most importantly artificial intelligence (AI). Programmatic ad buying analyzes a user's behavior to produce real-time results that help run ad campaigns with good returns.

Programmatic companies can get access to this data, which allows them to produce well-targeted ads. They can acquire such data directly or through a third party.

Programmatic media buying involves different aspects including demand-side platforms (DSPs), supply-side platforms (SSPs), and data management platforms (DMPs).

DSPs make it easy to buy ads on the open market, while also making it possible to find the target audience with the help of DMPs.

It collects data then analyzes it to provide marketers with information that makes it possible to target the right audience.

The next step is publishing, which is handled with the help of SSP. It creates reports highlighting user behavior, such as where the user goes or how much time he or she spends on a specific page.

Then SSP selects the winning bid and the chain continues.

Then SSP selects the winning bid and the chain continues

The Pros of Programmatic Advertising

Programmatic advertising does not work how traditional online ads do. In short, programmatic advertising automates the process and makes everything easier as it's more efficient and offers better results as well.

The programmatic ad buying process is simple and removes manual jobs, which actually helps not just publishers but advertisers as well.

Advertisers benefit by reaching the right audience, which helps improve ROI and as a result, more sales are made by spending less.

On the other hand, publishers benefit by selling the inventory to the highest bidding amount and make more money. Moreover, publishers have control over the kind of content displayed on their pages. They can select not just the content but also produce the ad design, colors, and format.

Let's know more about programmatic advertising by understanding the pros and features of programmatic ad buying:

Better Pricing

Programmatic ads allow advertisers to not overpay for ad impressions. However, the cost of each impression may differ based on the user. Hence, it's better to buy a single impression at a time.

Improved Ad Metrics

Programmatic ads provide better insights which help advertisers understand the potential impact of the ad campaign.

Scalability

Most publishers offer a large number of impressions for advertisers to choose when it comes to programmatic ads. This way advertisers can reach a large audience across different platforms, channels, and websites. This huge scale is of immense value to the advertiser.

Ad Fraud

If you know about online advertising, you must already be aware of ad fraud. Since about 33% of online traffic is fraudulent, the risk of ad fraud is always there. However, with better analytics, programmatic ads can control this problem to a large extent. Programmatic ads can help identify high-quality traffic and hence provides a better outcome.

Viewability

Programmatic advertising allows you to adjust your ad campaign according to the inventory, i.e: if it is below the fold or above the fold. This helps you create a customized campaign according to your goal.

Brand Safety

This is another major benefit of programmatic advertising. Many companies known for working on brand safety are in some capacity a part of programmatic advertising.

As a result, programmatic advertising allows you to get excellent results, not just in terms of numbers but in terms of image building as well.

Programmatic advertising supports Big Data, which allows users to easily optimize the amount of money spent on ad campaigns. This means programmatic advertising is suitable for all kinds of ad campaigns.

All in all, programmatic advertising is the future you can't escape. Consider what programmatic ads can do for your marketing campaigns. They might be the solution that you've been looking for.

Ready to start advertising programmatically?

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