Programmatic Advertising and Its Benefits

Like all things, marketing has changed drastically over the past few decades. One of the marketing strategies that has emerged in recent years is programmatic advertising.

What is Programmatic Marketing?

Programmatic marketing is a form of advertising that uses automated artificial intelligence and algorithms to purchase advertising on websites that best match the target demographic of a business; by doing so they are able to maximize their advertising dollars by showing the right ads to the right demographic at the right time. The buying, placement, and optimization resources run on sophisticated software designed to learn from online market trends and optimize the advertising placements in real time.

Programmatic advertising considers aspects such as gender, age, household income, location, behavior and interests while determining a target audience for a campaign. This makes showing relevant ads to a particular audience easy. Such precision in the delivery of adverts and marketing campaigns will offer you great efficiency.

Programmatic Campaign options:
  • Geofencing
  • Keyword and search retargeting
  • Contextual
  • Category
  • Behavior 
  • Site retargeting
How Does Programmatic Marketing Work?

Programmatic buying refers to inventory or ad space purchased automatically on a particular web page. This can be done through bidding or direct buying. Programmatic RTB (Real-time Bidding), on the other hand, is used to provide online browsers with display advertising.

If a web page has a space advertising space available, the information about the web page will be shared to an ad exchange platform as it loads. Advertisers will bid for that advertising space, and the winner gets their ads displayed on the web page as it loads. The space is called an impression, and its value depends on the type of site on which it is found. For instance, a website with a large volume of traffic has a possibility of a high user CTR (click-through rate).

Programmatic marketing companies such as Medialyze Marketing use demand side platforms to help decide which impressions to purchase. It performs bids on the ad exchange platform to find available and valuable impressions for a business. There is also a supply-side platform which sells ad spaces from publishers. The supply-side software is automated to outsource buyers of ad inventory for publishers.

What is the Difference between Programmatic Marketing and Digital Marketing?

Programmatic adverts are geared towards enhancing efficiencies in the buying and selling of inventory. Through the use of computers and algorithms, programmatic marketing makes the optimization of sites faster and more cost effective. Digital advertising, on the other hand, involves ad buyers who manually purchase digital ad space for their customers. In the latter you have to deal with tagging of customer requests and placement of orders, which is much slower than programmatic marketing.

Programmatic Advertising and its Future in Digital Marketing

The contemporary forms of digital advertising rely on a place and pray display system. Here, you simply purchase ad spaces on the internet, place ads and pray that prospective clients will click on them. These campaigns have proved to be rather inefficient and slow at creating brand awareness. More often than not, you will be showing ads to the wrong audience either in terms of age group or geographic location. However, with programmatic marketing, you can now choose which ad space to buy on specific websites that contain an audience likely to show interest in your brand.

The Advantages of Programmatic Advertising:

  • Offers lower costs for advertisers – Since the system is automated, there are more savings on operational tasks than compared to conventional advertising.
  • Reduces workloads – The turnaround time for your ad campaigns is greatly reduced due to the features of programmatic adverts discussed above. The use of robots and algorithms to handle most of the work also reduces human touch in the advertising process.
  • Transparent pricing – Programmatic advertising is purchase on a CPM (Cost per thousand) basis. Campaign impressions and cost are determined at the beginning of the campaign and a specific level of impressions are guarenteed.
  • Effective performance metrics in ad campaigns – Programmatic adverts are extremely personalized, automated, and targeted. This allows you to measure the efficiency of your advertising campaigns. For instance, you can evaluate the quality of your click-through and lead conversion rates quickly.
  • Personalization of ads – A programmatic software allows you to evade guess work and dependence on luck when purchasing ad spaces. You will only buy impressions based on hard facts and data generated by algorithms regarding user preferences.
Some Programmatic Marketing Mistakes You Should Avoid:
  • Quality versus quantity – Medialyze Marketing only purchases advertising on top tier websites – our motto will always be quality over quantity.
  • Data transparency – Insight into the target demographics used to build a campaign is key. Medialyze Marketing provides transparent insight into all campaigns
  • Unstructured Data – Almost all data we produce in digital marketing is unstructured yet most programmatic vendors are utilizing structured data which limits the abilities of programmatic advertising. Medialyze Marketing breaks away from traditional pre-packaged audience segments and uses the power of unstructured data to produce a programmatic experience with the best results that the most highly targeted.
  • Having poor metrics for carrying out analytics – This beats the very goal of programmatic adverts. Making a decision based on analytics from wrong metrics will guarantee terrible results. Pick the best tools to analyze your ad campaigns and get conversant with marketing analytics tools before diving into programmatic marketing.
  • Proper use of RTB – As discussed earlier, ad spaces are sold to the highest bidder. This means that if you win an impression on a site, your ads will be displayed on its web page. Utilizing the proper target demographics will make or break a campaign

These are some of the significant aspects of programmatic marketing. When executed right, you will notice a difference in the conversion of your ads.

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