What Is Programmatic Advertising? All You Need to Know

In this article, business owners will be able to learn everything that they need to know about programmatic advertising. Advertising has always been a huge part of business, and in the past, humans were fully in charge of every aspect of advertising campaigns. This is an outline that will respond to a business question: what is programmatic advertising and how can my company use it?

With the use of programmatic advertising, companies will not have to worry about the un-reliability of human nature. It is a software that helps companies purchase diverse types of digital advertising that will suit the needs of the company, based on their given parameters.

what is programmatic advertising

What Is Programmatic Advertising?

Simply put, programmatic advertising is handled by a software that helps to automate the decision-making process when buying media for a company. It follows strict guidelines set by the company using the software to target the demographics and specific audiences that they are in the market to help or provide for. These types of ads use real-time bidding and several types of artificial intelligence platforms for several outlets.

When understanding what is programmatic advertising, it is important to know the different outlets that it can help with. Some of the main outlets that programmatic advertising can provide include:

Unlike traditional TV advertising marketplaces, programmatic advertising can assist in targeting audiences. This comes without having to worry about human error or human situations, like sickness, laziness, or incompetence. Due to the fact it is ran by AI, human error and wrong targeting demographics becomes less of an issue.

Who Uses Programmatic Advertising?

Programmatic advertising can be used by any type of company that enrolls marketing in their business for services or products. But it is important that they understand what is programmatic advertising before deciding to use it. In the past, one of the biggest issues in advertising was in human nature and error. People can get sick, and some are not due diligent in their abilities and performance. Therefore, programmatic advertising is an option, especially for companies that cater to a larger demographic.

Since it is entirely based on a software program, the algorithms that it uses can be done more frequently and more precisely than if a human were to be doing the same job. However, this does not mean that programmatic advertising is not useful for smaller companies. It still works extremely well for them, especially if they provide an array of products and or services.

Ways in Which Programmatic Advertising Can Help Your Business

After asking, What is programmatic advertising?, the next logical question is how can it help a business? There are two main ways that programmatic advertising can assist a business:

  • Providing better ad relevancy;
  • Provides a more efficient sales process.

One of the biggest issues with direct ad campaigns is the fact that the relevancy of ads is usually more random and wide-spread. However, with programmatic advertising, businesses can couple data with automation. This makes their ad campaigns more relevant to the customers and clients that receive the ads. Programmatic advertising uses criteria like:

  • Interests;
  • Individual characteristics;
  • Behaviors and demographics.

These help to target the best audiences for their products, making the overall ad campaign more relevant. Also, this leads to the next major point of how programmatic advertising can help a business. If the campaign is relevant to the audience that it reaches, then the overall campaign will be more efficient and effective. For instance, traditional online ad buying depended on direct sales from individuals. Moreover, although direct sales are still relevant, the technology that is used in programmatic advertising helps to simplify the process that goes into direct sales.

advertising team working

3 Tips for an Excellent Programmatic Advertising

  1. Marketers have to always be willing to continue learning and taking lessons from what they have learned. If a marketer is only using programmatic advertising to lower-funnel their marketing initiatives or to re-target those initiatives, then they are not utilizing programmatic advertising to its fullest. If a marketer plans on using programmatic advertising, they must be willing to constantly learn and evolve based on the current market and standards. To do this, they must keep up-to-date on research and lessons of the newest ways of utilizing programmatic advertising.
  2. Marketers need to understand the new and different trends of programmatic advertising. Just like everything, programmatic advertising is constantly evolving. For instance, the current programmatic advertising trend is programmatic creative. This refers to how data is driven to ad-tech by using scale, automation, and speed, during the creative process. To do this effectively, marketers need to understand the two methods that are used to build these creatives. These are the Creative Management Platform (CMP) or Dynamic Content Optimization (DCO).
  3. Marketers need to be up-to-speed and understand header bidding and how it works. Over the past few years, header bidding has become increasingly popular because it allows marketers to gain control of their advertising without having to rely on third party publishers like Google’s ADs. Therefore, one of the best tips available for marketers that are wanting to use programmatic advertising is to learn and understand how header bidding works. Then, they just need to look into where they can go to do this on their own behalf.

To the Sales

Overall, programmatic advertising can be an excellent way to increase the efficiency of a company’s marketing campaign. So, what is programmatic advertising? That is an excellent question that every company and marketer needs to ask themselves. It is one of the best ways to make sure that their products and services reach the right demographic.

However, a marketer needs to make sure that they are willing to put forth the research and learning that is necessary for it to be effective. There are some other questions that should be asked before deciding on programmatic advertising. These are: Do we have a large enough customer base for it to be effective? Will it help to increase the efficiency of their current marketing campaign and teams’ efforts? Find your answers!

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