Are your ads working as hard as they could, or should they be working smarter instead?
As the world becomes ever more digitized, we relinquish more control to machines. Why? Because they’re more efficient than we are and they can do all those menial tasks that take up a lot of our time.
If you’re looking to maximize your online ad performance, this method could be the very thing your business needs. So, what is programmatic advertising?
This article will show you what programmatic advertising is, how it works, and how it can benefit your business.
What is programmatic advertising?
Buying ads can be quite involved, taking up more of your precious time that could be spent elsewhere. Negotiating, requesting quotes and proposals, and other manual work can all be automated with programmatic advertising.
Put simply, it is the use of artificial intelligence and machine learning that does all the hard work in buying your digital ads. It means you no longer have to deal with other humans for pricing, placement, and optimization of your ads.
How Does Programmatic Advertising Work?
After inputting your campaign information and performance indicators, the software algorithms get to work. It will then launch your ad campaign, track your ad spend, and determine how to use it in areas that need improvement.
As someone views a web page with programmatic ads, the bidding begins automatically. The ad space is listed on the publisher’s supply-side platform (SSP) with the relevant information for advertisers to bid on the space.
Cookie analysis shows the user’s demographics, location, and other information, which is reviewed by the demand-side platform (DSP). This then selects an appropriate ad space to meet the budget and target criteria and makes a bid accordingly.
This is sent to the SSP along with other bids to determine the winner. The SSP displays this ad to the user in real-time, thus streamlining the whole process in a matter of milliseconds.
Programmatic Advertising Channels
Programmatic ads can run through various formats. Here’s a list of some of the most popular channels that may give you a good idea of where you could benefit.
Display ads – Google is normally the go-to for these as they’re easy to place on any website and generate income through clicks and impressions.
Social ads – as social media platforms collect a ton of user data, it can be really useful for displaying highly targeted ads.
Video ads – these can run in-stream (within the media player), out-stream (within content), or in-display (in search results).
Native ads – these match the content of the page they’re on and come in various forms, including in-feed, in-article, recommendations, and sponsored content.
Taking Advantage of Programmatic Advertising
Hopefully, this brief outline will help answer your question of, “What is programmatic advertising?” It should give you a good idea about what’s involved and how it can benefit your business and make your life a little easier.
Of course, there’s still a lot more to it than what’s detailed here. But if you want to free up some of your time spent on ads, it could be a very effective method to adopt.
Nowadays, more and more business owners are taking advantage of programmatic advertising. Perhaps you should give it a try too!