Programmatic advertising is the Holy Grail for digital marketers. Why? Let’s quantify.
• Programmatic is a $32.56 billion industry, growing at 59% yearly
• By the year-end, Google’s 60% of advertising revenue will come via programmatic
• Programmatic accounts for 80% of mobile display spends in the US
• The ad dollars traded programmatically have spiked to 80% of total ad trading revenue
• In 2019, 65% of B2B marketers used Programmatic to buy or sell digital ad space
• Over 50% of marketers count on programmatic to fetch mobile ad space
Everyone talks about Programmatic advertising, but only a few know what exactly it is. Here is a starter’s guide to Programmatic to beef up your knowledge for informed digital inventory buying.
What is Programmatic?
Programmatic advertising is an automated way of purchasing or selling digital advert space across channels. Outdoor, social, voice, display, mobile, video and even TV, you name it. Traditionally, ad space buying involved RFPs, estimates and human negotiations. But in Programmatic, machines and algorithms are used to simplify and expedite the buying/selling process.
How does it work?
Programmatic advertising is run through ad exchanges that conduct digital auctions. Advertisers seeking ad space and publishers having an ad space to sell, both participate in the auctions via different platforms. The buyer uses the Demand Side Platform (DSP) and the seller works via Supply Side Platform (SSP). Bidding to sales and ad placement, everything is automated, in real-time.
The software leverages digital targeting techniques and traffic date to place ads at scale, accurately and speedily. That makes Programmatic a win-win proposition for advertisers and publishers alike. The advertisers make their ad appear to the right audience at the right time. On the other hand, the publisher can always expect the best end of the deal for his ad space.
The process involves the following steps:
• A user logs on to a given website
• The publisher puts the ad space on auction
• Advertisers make a bid for the ad space
• The ad space is reserved for the highest bidder
• The ad is placed on the website for the user to see
Why is it important for you?
Programmatic is a highly targeted digital advertising strategy. You have the user’s browsing behaviour and personal data and several analytic tools. That’ll help you optimize your targeting strategy and boost conversions. The process might involve complex calculations but only at the machine level. As a buyer, you can always expect quick and hassle-free buying.
