A beginner’s overview of programmatic advertising

A beginner’s overview of programmatic advertising
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Before jumping to the actual topic, let’s reel back a bit. Remember the award-winning TV series Mad Men? The show was centered around the fictional advertising agency, Sterling Cooper. In a scene, Copywriter Paul explains the media buying department to his secretary Peggy.

“That’s the whole shakedown actually, they don’t sell ideas or campaigns or jingles. They sell media at 15% markup”

Let us take a quick look at what is programmatic advertising.

Programmatic advertising if put simply, is usage of automated and computerized processes and software to buy digital advertising. This is a far cry from the traditional processes of media buying involving requests for proposals, tenders, and human negotiation.

In other words, it could also be described as an easier way of media buying that is designed to replace human interference between advertisers and publishers supplemented by AI optimization. The process ensures efficient use of both time and resources and improved ROI for both advertisers and publishers.

Types of Programmatic Advertising

    • Real-Time Bidding (RTB):

Working in the digital space, you probably would have come across the concept of Real-Time Bidding (RTB). It is a way of buying and selling ads via real-time auctions. For example, a user lands on a website, the request is sent to an ad exchange with the visitor’s data and information. The information is then matched with the available advertisers and a real-time auction takes place.

    • Programmatic Direct:

Programmatic also includes another form of ad buying called as programmatic direct, which allows advertisers to buy a specific amount of ad impressions. This method comes with a guaranteed ad impression on a specific website. This type of ad buying gives assurance of ad space on specific publisher sites.

Benefits of Programmatic Advertising?

Programmatic advertising offers a wide range of benefits. Below mentioned are some of the key advantages of programmatic advertising:

    • Reach

Programmatic advertising includes multiple ad exchanges and networks which allow advertisers to access more ad spaces on various websites at once.

    • Interesting Targeting

Programmatic advertising supports advanced targeting to help advertisers reach a quality audience on a larger scale.

    • Transparency

Programmatic advertising is an automated technology that allows advertisers and publishers to access real-time data about their activities and placements which maintains transparency.

    • Overall Efficiency

Programmatic advertising is one of the most optimal ways of running ad campaigns. It helps send the right information at the right time to the right audience.

    • Next-Gen Technology

Depending on algorithm-based systems for extracting ad exchanges and getting real-time data access with accuracy is a smart move for advertisers.

Programmatic advertising investments have been on the rise every year and is expected to be used for most of the display advertising within the next year or two. According to some surveys, in the US, about 80% of display ads in 2021 are said to be bought through programmatic advertising. So, if you think, it is the right time to move towards the world of programmatic advertising, you are right.

If you’re someone who is looking for a solid programmatic ad strategy and want to veer away from the traditional hit-or-miss Ad Ops methodologies, connect with our experts at Responsive Media Tech Services. We can help you create excellent marketing solutions with our creative methods while leveraging industry best practices.

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