Programmatic Advertising

“Programmatic” ad buying typically refers to the use of software to purchase digital advertising, as opposed to the traditional process that involves RFPs, human negotiations, and manual insertion orders. It’s using machines to buy ads, basically. Traditional ways of buying digital ad space involve the publisher running the campaign, while programmatic puts the control to manage and measure back into the hands of the advertiser.

A ‘one size fits all’ approach to programmatic does not work, rather it’s a matter of being able to adapt quickly and control the spend which makes the buys more effective and efficient.

You want to think about what audience you are trying to reach, and on what kind of day, and to what degree, and on what devices, demographically and behaviorally based – what is that individual’s internet consumption and behavior, their online habits over a period of time.

Programmatic has enabled us, marketers, to move and conduct media transactions on an impression-by-impression basis.

For example: In the past, a brand might buy a million impressions on the XYZ and commit to that over a period of time, now a brand can buy a million impressions but split it across multiple publishers or media owners, targeted at a particular audience segment.

The personalization and ability to automate the media buy in a relevant way for the consumer, looking at the adaption of the creative vs the different target audiences, in real time.

In marketing, we want to understand who our target audience is, what they do, where they live, what they are interested in? Programmatic allows for this to happen along with many data points that we are able to look into. From search to social media listening, to our own data.

We define programmatic as machine-driven automation, it is that simple. It could cover every bid adjustment on Google, to buying a display impression on an (RTB) real-time bidding network.

Some might think programmatic advertising just equals the same as display – we, however, know it is about maximizing efficiency and effectiveness within your marketing strategies. It is robots making much better decisions than humans, and those decisions bring in much higher ROIs.

Programmatic enables us as marketers to track the impact of our client’s investment and optimize their ad campaigns in real time. Before the campaign begins we establish what the primary and secondary KPIs are, because due to the real-time nature, where changes are possible at any and all the time, our focus as an agency is to remain crystal clear on what the goal for our clients and partners is and are so ultimately we deliver the best results possible.

The reality is the real-time advantages of programmatic are only as good as the marketer and agencies ability to analyze the results. Programmatic buying if executed right will free up brands to spend more time thinking about their customer, which will eventually enable each brand to move beyond the traditional budget allocation to a more customer-centric model and approach.

How does Programmatic Advertising work?

STEP 1: Someone clicks on a web page.

STEP 2: The publisher of the page puts the ad impression up for auction.

STEP 3: The ad marketplace holds an auction among the advertisers competing for the impression.

STEP 4: The advertiser willing to bid the most for the impression wins the right to display their ad.

STEP 5: The ad is delivered to the prospective customer.

STEP 6: Customer clicks on the ad and the advertiser converts them into a sale and profits.

The Benefits of Programmatic Advertising:

  • Increase transparency control
  • Real-time reporting and data
  • Greater overall efficiency
  • Increase audience reach
  • Laser targeting capabilities
  • Advertisers pay for only relevant impressions
  • Programmatic reduces the incidences of ad fraud
  • Higher overall ROI

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