Introduction to Programmatic Advertising

introduction to programmatic advertising

Operating a business and spending a part of the monthly budget on distinctive online advertising, you surely have heard plenty of rumors about programmatic advertising and its enormous influence on the entire world of ads and online promotion. In this intro to programmatic advertising, we will reveal the facts and will also help you to discover how to benefit from programmatic way of buying digital ads.

What is Programmatic Advertising? - The Definition

Programmatic advertising is an innovative technology that allows automating the process of buying media ads. Unlike the traditional advertising, where you need to manage quotes, tenders, incoming proposals, and other stuff manually, programmatic advertising does the same but automatically, with the help of machine learning and a particular algorithm, enhanced with Artificial Intelligence.

Guide to Programmatic Advertising Fundamentals

The primary goal of the programmatic technology is to satisfy both the advertisers and the publishers by increasing the value and efficiency of digital ads buying. In the model of advertising done programmatically, advertisers are the buyers who want to promote their products or services and look for ad space. And the publishers are the sellers who operate available ad slots in their inventory and make money by trading the space for digital ads.

The essential basics of programmatic advertising come in the form of a reliable supply-side platform and a solid demand-side platform. The first one helps publishers to manage their ad space so to monetize their inventory . Meanwhile, the second one allows advertisers to manage the ad buying workflow so to simplify the media buying process and make it more effective .

The entire process of programmatic advertising is realized through auctions that work in real-time and provide the opportunities to buy ads at the same time as a specific visitor enters a particular website.

Programmatic Advertising Explained

To completely understand what is programmatic advertising, you need to dive into the principle of the real-time bidding. That is why we mention the full process with its particular steps.

First, the advertiser creates a campaign aiming to target a relevant audience for one’s business. At the same time, a publisher checks the inventory slots and sends a request to fill the necessary slot with a specific type of ad. After that, responsible demand- and supply-side platforms start exchanging the required data (the age of the audience, its interests, previous web searches, location, types of the devices used, etc.).

Then an RTB (real-time bidding) auction takes place. Advertisers make bids on the available ad space, and the supply-side platforms define the winners who have the highest points in CPM (cost per mile). The process of this kind of advertising is rapid and takes 0,1 second, covering everything from online real-time bidding to the ad delivery. Thus, the flow of programmatic advertising is the following:

  • Someone clicks on the site and the website owner places the ad impression for the auction;
  • All the advertisers make start bidding for a certain impression and the winner receives the impression;
  • The ad is shown to the website visitor to make him click on the ad and make a conversion.

Why Programmatic Advertising?

Well, the effectiveness of programmatic advertising has been already evaluated and truly is not overstated. As per eMarketer, US advertisers seeking for perfect digital space for ad placement will spend around 80 billion in programmatic ads by 2021.

Moreover, with programmatic technology, the advertisers pay for the exact traffic they get, saving the ad budget from wasting. Beyond that, thanks to robust data collection and exchange options, platforms devoted to programmatic ads help marketing specialists learn their audiences so to make beneficial business decisions.

Broad Capabilities for Targeting

Programmatic platforms provide a wide range of data collection tools that you can use to get the most out of advantageous reporting and targeting. Thanks to the increased flexibility of the technology, you can reach your ideal customers and learn their behavior and interests on the web. Track your potential clientele by the preferable IP address, GEO, keywords typed in the search bar, and even more. The additional big plus is the option of efficient retargeting, which boosts your chances to make more conversions.

Real-Time Data Measurement

Even operating only the basics of programmatic advertising, you get real-time access to your data, which simplifies the entire workflow and makes it far more quick and effective. Programmatic allows you to track the performance of placed creatives, targeting, and the full campaign in general. Additionally, you can modify or optimize the existing campaign, if necessary. And, the most important, you do not need to wait for the campaign completion to see and analyze the results and create a blueprint for further campaigns.

Secure Ecosystem for Advertising

Malicious traffic is a thing that has already wasted tons of advertisers’ money. This problem of invalid traffic occurs when not real people, but bots see the ads and bring no relevancy to the advertiser. The ad frauds cause the risks for the brand to be rejected when appearing with a low-quality or offensive content. Here is where the programmatic advertising comes in handy as its transparency in trading allows you to buy media ads safe and protect your brand from being under the shot.

Automated media buying is the future of digital promotion as it offers a much more reliable, convenient, and cost-effective way of buying the online ad space. With programmatic, you do not need a team of marketers to monitor the campaigns. Thanks to vivid analytical tools, enhanced data insights, full adaptability, an accent on key marketing metrics, and affordable pricing, you can achieve your goals in business advertising without any chain of additional software. Besides, programmatic advertising struggles for driving results, helping you to master all the campaigns and receive relevant leads that are ready to convert.

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