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What is Programmatic Advertising? Boost Your Marketing Efforts!

what is programmatic advertising

Online advertising can help your company stand out. Programmatic advertising is a method for publishers to automatically buy digital campaigns and optimize them.

Advertising doesn’t just involve buying media space. Advertising buying is, without a doubt, the key to any company’s success. To ensure that your ad is seen by the right audience, it is important to properly place it. Advertising is all about buying the best space for the best price and targeting the right audience.

It is designed to replace human negotiations with machine learning and AI-optimisation. Both the advertiser AND publisher will experience increased efficiency as well as transparency. Auctions that take place in real-time allow for ads to be purchased at the same time as website visitors load them.

Why Choose Programmatic Advertising?

what is programmatic advertising

Programmatic advertising allows instant buying and selling ad inventory through an automated bidding process. Programmatic advertising allows brands or agencies the ability to buy impressions directly from publishers or apps. Programmatic advertising can be used for digital out-of-home (DOOH), digital streaming, TV, and video ads.

This is an advanced way to place ads. It targets impressions at scale using traffic data. This improves marketers’ ROI. It is a powerful tool that can be used by both SMEs and large brands. It is important to use it even if your business is small.

However, it does not automate the entire ad-buying process. In the past, insertion orders or tags had to be prepared manually. This can take a lot of time. Marketers can spend more time on programmatic advertising to optimize ads, improve campaign performance, and save money.

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How does Programmatic Advertising Buying Work?

Here’s the programmatic purchasing flow explained in plain English.

  1. A person clicks on a site.
  2. The auction is set up by the owner of the website (SSP).
  3. Advertisers are open to impressions (DSP).
  4. The highest bidder will take the advertisement impression
  5. The user can view the advertisement by visiting the website.
  6. A user clicks on an advertisement and it converts.

Despite its complexity, the entire process takes only seconds. The competitive bids are calculated using a number of analytics and algorithms, which determine which one is most cost-effective.

What is a Supply-Side Platform (SSP)?

An SSP manages the inventory for the publisher. A publisher submits their page as a source of an advertisement. Once an agreement has been reached via the Ad Exchange, the publisher will add a code on their page to track visitor behavior.

This code gives anonymous data about visitors’ actions and visits. The SSPs aim to maximize the value publishers can get from each impression of an ad (an impression is when an advert is displayed to someone). Publishers have the option to filter ads by the advertiser and other criteria as well as to set different rates for ad space.

What is a Demand-Side Platform (DSP)?

DSPs are programmatic platforms that advertisers can use. The platform decides after advertisers submit their bids.

DSPs have the ability to store user profiles and other third-party information and combine these data with advertising bids. The DSP chooses the ad that will appear on websites where users are located. It must also consider the bid received. The winner is determined by the highest bidder.

What are the Benefits of Programmatic Advertising?

programmatic ecosystem

Programmatic advertising is a great way to reach new audiences that are not possible just five years ago. Programmatic advertising is becoming more sophisticated with the emergence of new ad technology. Here are some key benefits to programmatic advertising.

Reach

Programmatic advertising is able to be used to support multiple exchanges and ad networks. This gives advertisers more exposure on thousands of websites simultaneously. Advertisers are able to place ads at scale, at low prices, and with minimal effort.

Transparency

Advertisers, as well as publishers, can access real-time information about ad placements. Programmatic advertising increases transparency. Programmatic advertising transparency is crucial.

Targeting Beyond the CTR

CTR is not considered to be a KPI. It doesn’t matter how many visits your website receives – if they’re not converting into leads, it won’t matter how many. Programmatic advertising is a way for advertisers to reach high-quality audiences using advanced targeting options, such as lookalikes or interest targeting.

FAQs

What is a Data Management Platform (DMP)?

The right data is essential for programmatic marketing. DMP is an independent platform that collects, analyzes, and manages data. The platform provides detailed user profiles to advertisers so they can use the data for programmatic purposes. It is designed to match visitors to the best ads.

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