Digital media is constantly evolving and to continue thriving in this space you need to be up to date with emerging technologies and methods. Regardless of how good your ads are they can never reach their true potential if not directed to the right target audience and continuously refined for better performance.

PROGRAMMATIC ADVERTISING DEFINED.

Programmatic alludes to how ads are bought and placed contrasted to display which then refers to how and where ads appear. Therefore, programmatic advertising is defined as the automation of buying and selling digital advertising space using the software.

With traditional display ad buying you are required to involve other parties i.e., web hosts that sell ad space, and you, the advertiser, who wants to buy ad space and a chain of processes i.e., requesting quotations and proposals, payment negotiation, etc. Programmatic ads cut down the process and use artificial intelligence to automatically buy and sell digital ad space. An upside to programmatic advertising is that it is not only limited to display ads but rather includes other types of ads, that is, video, search engine marketing, and email marketing etc.

WHY PROGRAMMATIC ADVERTISING

It’s essential now that you include programmatic advertising into your marketing mix, here is why;

Through automation programmatic ads save time, they provide you with information on where your ads are placed, how much you are paying for them, and how they are performing all in real-time. Forget having to request quotes, going back and forth negotiating prices, and then place your ads manually.

Again, it allows you to measure your campaign return on investment (ROI) in real-time. Because programmatic platforms rely on real-time bidding this allows you to see how your ad is performing and better optimize it to perform better.

Furthermore, reach is broader, you can target your ads based on specific elements such as demographic, location, and interests which escalates the chances of your ad’s success.

• Real-time bidding also known as open marketplace happens in real time where ad space from any location is open to the public. Its name is derived from the fact that ad auctions happen instantaneously in real-time.
• Private marketplace is usually preferred by businesses with large audiences that can afford first-rate ad space this bidding works on an invite-only basis. Publishers set aside ad spaces for a select group of advertisers.
• Preferred deals also known as spot buying involve prior negotiation of price between the advertiser and the publisher.
• Programmatic guaranteed follows the same methods as traditional ad buying where the advertiser and publisher negotiate without any bidding involved. The publisher and advertiser agree on a fixed price for ad inventory and is usually chosen by advertisers who know exactly where they want to place their ad and what their target audience is.

The world is already further down the digital transformation road, keynote businesses have already digitized their marketing strategies. So as marketing continues to digitize, it’s critical to continue upgrading to more efficient methods of digitization for greater ROI.

REFERENCES

Brayer, M. (2022). Introduction to Programmatic Advertising. [online] Outbrain. Available at: https://www.outbrain.com/blog/programmatic-advertising/ [Accessed 6 Oct. 2022].

Deshpande, I. (2020). What Is Programmatic Advertising? Definition, Types, Channel, and Advantages. [online] Spiceworks. Available at: https://www.spiceworks.com/marketing/programmatic-advertising/articles/what-is-programmatic-advertising/ [Accessed 6 Oct. 2022].

Hughes, D. (2021). The Beginner’s Guide to Programmatic Advertising. [online] Digital Marketing Institute. Available at: https://digitalmarketinginstitute.com/blog/the-beginners-guide-to-programmatic-advertising [Accessed 6 Oct. 2022].

Storm, M. (2021). 4 Types of Programmatic Advertising for Your Business [Guide]. [online] WebFX. Available at: https://www.webfx.com/blog/marketing/types-of-programmatic-advertising/ [Accessed 6 Oct. 2022].

Strategus (n.d.). THE ALL-IN-ONE GUIDE TO PROGRAMMATIC AD BUYING. [online] Strategus. Available at: https://www.strategus.com/blog/the-all-in-one-guide-to-programmatic-ad-buying [Accessed 6 Oct. 2022].

Vicioso, S. (2021). PROGRAMMATICADVERTISING101:HOWITWORKS. [online] Seer. Available at: https://www.seerinteractive.com/blog/programmatic-advertising-101-works/ [Accessed 6 Oct. 2022].