Have you heard of programmatic advertising? Maybe not… and if you have, maybe you don’t understand it that much. Well, it can yield a lot of benefits which may apply to you.
So in this article, we'll explain what it is, how it works in practice, and how it can help both publishers and advertisers.
What Is Programmatic Advertising?
With
programmatic advertising, real-time web advertising space is purchased by algorithms. Uh-oh, you may say … and we sympathize with that kind of reaction. But in the right situation, they can be amazingly effective.
This is because these algorithms present the most relevant ads to each user based on a number of characteristics. These include their demographic profile, surfing habits, and even their past purchases.
So instead of buying specific ad space directly on a website, advertisers use a specialized buying platform to purchase ad space or
programmatic development services (we've linked here to an example of what you can get). This can be done on a per-user basis, automatically, across multiple ad networks.
How Do Programmatic Ads Work In Practice?
Programmatic advertising platforms provide a smooth connection between publishers who provide ad space and advertisers who want to display their adverts. And the mechanism by which these platforms operate is called Real-Time Bidding (RTB). It allows marketers to choose the type of users – and the kind of websites – for their ads.
That, basically, is all there is to it!
Advantages Of Programmatic Advertising For Publishers
Clearly, it’s a great way for publishers and website owners to monetize their site visitors. That’s because it’s an automated process that doesn’t require human contact. This means that selling ad space inventory is more profitable … and campaign management needs less work.
Among the main advantages of programmatic advertising are the following:
- Enhanced income generation: Publishers can sell real-time ad impressions, which helps them to use their space much more effectively.
- Inventory control: Publishers are able to specify their requirements for the ads. This includes things like ad type, format, content, and (of course) price. It means they have much more control over the caliber and suitability of the adverts displayed.
- Automation: Publishers can allocate resources to, say, producing high-quality content rather than constantly managing their ad sales.
- More selling options: This is because they now have the option to sell directly or through an auction.
- Wider audience reach: Because publishers can sell ad space across different channels and platforms, it gives them a better opportunity to reach a bigger audience.
- Real-time optimization: Publishers are able to adjust their advertising strategy in real-time, in response to real-time data and their chosen KPIs. This obviously will help to improve campaign performance.
Advantages Of Programmatic Advertising For Advertisers
The great benefit for marketers is that it provides a simple and effective means of buying advertising space in real time. The platform takes care of the rest, using its algorithms to assess user data and show ads only to those most likely to relate to what’s being offered. It’s so simple! All they need to do is choose the type of advertisement, the target demographic, and their campaign budget. Moreover, they can also modify their campaigns on the go, based on ad performance.
Here are some of the benefits it provides for advertisers:
- Lower costs: Compared to other online advertising approaches, it offers more opportunities to save money because of the flexibility of the purchase process.
- Accurate targeting: Making use of user data to target advertisements makes sure that the people who see them are more likely to be interested in what they say.
- Improved optimization of advertising spaces: This is made possible because of the options available to use different ad types.
Programmatic Advertising: Is It Worth It?
For both publishers and advertisers, programmatic advertising provides clear advantages. And the examples we’ve already given should help you to decide whether it’s right for you. But if not, you can see more in this article from the
Digital Marketing Institute.
If you’re an advertiser, there’s also the fact that you have more authority – and control – over the location and format of your ads. And there are lots of programmatic advertising development solutions available on the market. We’ll give the example of Teqblaze to show you the kind of thing you can expect. And it’s simple enough…
First, you will need to register and set up an account in order to use these services. And after that, you can design your advertising campaigns and specify your target market, budget, and your goals.
Examples Of Programmatic Advertising
Here are a few examples of how it’s used.
- Text ads displayed in search results: These are dependent on the user's input of keywords into the search engine.
- Display ads on websites: These need to be designed to be compatible with the content of the websites they appear on.
- Website and app video ads: These are displayed according to the content of the video the user is now viewing.
- Social media ads: The content of these ads is derived from users’ posts and their profiles on social media.
- Mobile App Ads: These are displayed in accordance with the material that users view on the app.
Of course, all these examples can be combined with each other or used on their own.
Conclusion
Programmatic advertising is just one of many tools that can be used in a digital marketing campaign. This complexity of options can make it seem a bit of a challenge, but as you can see from what we’ve said here, the benefits can transform the levels of success you achieve.
It’s your choice, and we hope we’ve helped you to make it!
