Programmatic advertising is a vital part of marketing, which can be called the backbone of online advertising. If you have heard that programmatic is a game-changer but do not deeply understand its role, you are at the right place. In this article, we will define what programmatic is and explain why it is important to publishers and advertisers.
What is Programmatic Advertising?
To put it simply, programmatic advertising is a way to buy and sell digital advertising without having to buy them directly from publishers. While the direct method takes a lot of time to send requests, quote the price, and negotiate, programmatic buying uses an automated process to purchase online display space in the most effective way. The machine learning algorithms are used to deliver the most relevant ads to audiences based on a range of signals such as location, gender, and shopping activities to make sure that ads will be targeted to the right users.
How Programmatic Advertising Works?
Let’s take a look the underlying processes that occur during each programmatic ad auction.:
- Targeting: When a user accesses a website, the publisher’s platform makes ad space available and opens an auction for the ad impression through the utilization of header bidding and one or more supply-side platforms (SSPs). At the same time, the DSP uses activity data to determine which ads would be a suitable fit.
- Bidding: In milliseconds, the DSP engages in the act of bidding on behalf of the advertisers for the specific impression, taking into consideration several aspects such as the campaign’s strategies, budget, and creative sizes to place bids for that ad space.
- Ad Serving: Impressions are allocated to the highest bidding advertiser/DSP and the advertisement is promptly shown on the website.
- Optimization: Advertisers collect performance data from each impression in order to enhance future bidding strategies and refine targeting techniques.
This workflow seems to be sophisticated, however, through automated steps, it only takes less than a second to serve the most relevant ads on the site. In this way, the advertisers also have good data to analyze, optimize, and improve ads for successful campaigns.
Why it is important?
If you have a good understanding of how programmatic advertising works, you might have the answer to the question of why it is so crucial. It is no doubt that programmatic ad buying saves a lot of time in the running of ads and campaigns. Not only solves the limit of the traditional media buying process that includes a lot of manual work and human negotiations and manual insertions of the orders, but it helps advertisers to gather data for creating effective campaigns. Additionally, this method reduces the number of ad impressions that are wasted by targeting ads to audiences that are more likely to be interested, thereby lowering the chance of ad fraud. Consequently, it proves to be a cost-effective strategy
What are the benefits of programmatic advertising?
It is undeniable that programmatic ad campaigns are faster and more efficient than a mass of administrative tasks and back-and-forth conversations. Even beyond media buying, programmatic advertising has many more advantages. Consider these programmatic ad benefits, from increased brand visibility and audience reach to media format and optimization flexibility.
Scalable and Flexible Spending
Ad campaigns with programmatic ads are totally scalable, making them suitable for all types of business. This is a trackable method since it provides marketers/ advertisers with real-time access to performance and placement, allowing them to keep an eye on ad spend.
Depending on some factors including the campaign’s ROI, advertisers can determine to up or reduce the budget whenever appropriate. Not only can budgets be utilized more efficiently, but programmatic advertising also provides extremely flexible scalability for advertisements.
Large Reach
The second perk of programmatic ads is that they can assist in growing your brand’s internet visibility. If you want your company to grow, you need to actively seek out new customers.
Using programmatic advertising, you can effortlessly promote your brand across multiple channels at once. That means your ads have the potential to reach millions of online consumers at any given time.
Transparency
This transparency is crucial to the success of programmatic advertising. Marketers that have access to this information in real-time can adjust when necessary and adjust the setting and appearance of digital ads to increase the potential of successful conversions.
Efficiency
With all the above benefits of programmatic advertising, clearly, this is an effective way in online marketing. The advertisers are able to optimize the placement and style of digital advertisements based on real-time data to increase brand awareness or conversion rates.
Targeting
As previously mentioned, the precision of programmatic advertising enables a level of targeting that surpasses all other marketing methods. It allows advertisers to target a variety of aspects based on their detailed requirements.
The various types of targeting include:
- Contextual: Ads can be targeted in this way so that they only appear on sites that are likely to be of interest to the viewer.
- Behavioral: Behavioral targeting shows ads to people who behave in a certain way, like putting something in their shopping box but not buying it. This is based on their shopping habits and interests. You can send that person something that they might be interested in.
- Location: Geo-targeting is a method used to ensure that advertisements with location-specific relevance are displayed to individuals who are most likely to find them useful.
- Device: Because advertisers can now reach customers across devices, marketers no longer need to rely solely on the hope that a single advertisement will be effective; instead, they can utilize advertising that nurtures prospects using an omnichannel approach.
Variety of Creative Formats
The availability of multiple creative formats for programmatic advertising is considered to be a major contributor to the increased reach of audiences, making it a huge advantage for marketers. Instead of concentrating on assets for a single approach, it is advisable to generate and evaluate various formats in order to choose the form of advertising that achieves the greatest return on investment (ROI) and effectively engages the target user.
Examples of programmatic advertisements include:
- Audio ads
- Display ads
- Native ads
- Video ads
Let’s Start Then
Publishers definitely gain from programmatic advertising because it makes buying and selling ads easier, makes targeting better, and brings more income overall. However, there are technical challenges and the constant need for innovation inherent in this field of advertising technology.
In this situation, forming partnerships with monetization partners would be optimal. PubFuture, a prominent advertising network, is an excellent option. PubFuture provides a broad collection of programmatic advertising solutions and specialized knowledge that can assist you in optimizing ad inventory, maximizing revenue, and enhancing the overall user experience.
Through a partnership with PubFuture, publishers are able to concentrate on their primary business objectives and content generation, while entrusting the complexities of programmatic advertising to proficient specialists. This collaboration enables users to effectively leverage the capabilities of programmatic advertising, resulting in an average increase in revenue of 50%. Additionally, users will benefit from unparalleled transparency.
