As a company, you likely want to increase brand awareness, drive more traffic to your website, and increase conversions from those visitors. With so many advertising options available today, you may think that it is overwhelming and difficult to know where to start. However, there is one type of digital marketing that has grown in popularity among businesses in all industries: programmatic advertising.
To understand how programmatic advertising works and why it is important for your business, continue reading this article. We’ll explain what programmatic advertising is, the benefits it provides, how it differs from other online ads and why now is a great time to implement it into your advertising strategy. Read on to learn everything you need to know about programmatic advertising as a company or as an advertiser.
What is Programmatic Advertising?
Many businesses use online advertising to reach potential customers. Many of these companies use programmatic advertising, which is a digital advertising service that uses software to buy and sell advertising space automatically.
Programmatic advertising lets advertisers use software to purchase advertising inventory by bidding on ad space based on criteria such as time of day and the targeted audience. Programmatic advertising is also called real-time bidding (RTB).
It is a highly scalable way of buying advertising space, which a company can use to increase their ad inventory quickly. The process of buying and selling digital ad space is completely automated and can happen in fractions of a second.
Why Is Programmatic Advertising Important?
As a company, you likely want to increase brand awareness, drive more traffic to your website, and increase conversions from those visitors. With so many advertising options available today, you may think that it is overwhelming and difficult to know where to start. In reality, you can use multiple forms of digital marketing to achieve those goals.
One of the most popular forms of digital marketing is programmatic advertising. It is a type of real-time bidding (RTB) advertising, where advertisers use software to buy ad space at a specific rate, which is typically per thousand impressions (PMPs).
Programmatic advertising is an important part of any advertising strategy because it is scalable and automated, which allows you to successfully scale your digital ad campaigns quickly. Additionally, programmatic ads are highly targeted and are typically more affordable than other types of online advertising.
What Are the Benefits of Programmatic Advertising?
Programmatic advertising provides many benefits for both businesses and advertisers, including brand awareness, audience targeting, and improved click-through rates.
Brand Awareness: When you advertise via programmatic advertising, you have the ability to reach a wider audience with your messages. These ads are often seen across multiple devices and websites. Thus, your ads have the potential to reach a wider audience and improve your brand awareness.
Audience Targeting: Programmatic advertising allows you to target the people that are most likely to engage with your brand and purchase your product. You can use a wide array of targeting options to show your ads to the right people.
Improved Click-Through Rates: By targeting the right audience, you can increase your click-through rates and drive more clicks to your website.
How Does Programmatic Advertising Work?
With programmatic advertising, a business will purchase ad space using software. This software acts like an auction, and a real-time bidding process will begin. The software will use various targeting options, such as the desired audience, to determine the price of the ad space. Once an advertiser wins the space, the ad is displayed on the desired website or app.
The ad is placed in a location where other advertisements are already being displayed. This allows businesses to scale their ad campaigns quickly and efficiently, as well as reach a wider audience with their brand message. While programmatic advertising can be used for both paid and earned media campaigns, this article is focused on paid media campaigns. When starting a paid media campaign, you can choose to either use an ad server or programmatic ad exchange.
3 Things to Know Before Starting a Programmatic Advertising Campaign
To ensure that you have a successful programmatic advertising campaign, there are a few things to keep in mind.
Demand-Side Platform (DSP): Your ad campaign will likely be handled through demand-side platforms (DSPs). These platforms let you buy ad space using various criteria, such as the time of day, the location, and the targeted audience.
Ad Server: Ad servers are used to deliver ads to your landing pages and websites. They are also responsible for tracking and managing clicks, impressions, and other metrics of your ad campaign.
Ad Exchanges: An ad exchange is a marketplace where multiple ad networks meet to buy and sell inventory. Basically, the ad exchange is a middleman that stores your ad and finds the best place to display it.
Bottom line
Programmatic advertising is a highly scalable way of buying advertising space, which can be used to successfully scale a company’s digital ad campaigns quickly. Programmatic advertising allows you to reach a wider audience with your messages, target the people that are most likely to engage with your brand, and increase your click-through rates.
Now is the perfect time to implement programmatic advertising into your advertising strategy. By understanding what programmatic advertising is, why it is important, and the benefits it provides, you can create a successful ad campaign.
References:
1-Digital marketing: A framework, review and research agenda
https://doi.org/10.1016/j.ijresmar.2016.11.006
2-Manipulating search engine algorithms: the case of Google
https://doi.org/10.1108/14779960710837623
