If you tend to keep your ears tuned into the latest digital marketing news, you’ve likely heard some newer terms related to real-time digital ad buying. More and more digital marketing agencies are dipping their toes into the programmatic advertising world, so it’s important for our clients to be aware of this new channel and the opportunities it can create for your business.
Programmatic advertising (also known as programmatic media or programmatic marketing): The real-time buying and selling of ad inventory.
Perhaps the easiest way to understand programmatic advertising is to think of it as the opposite of traditional advertising. In a traditional advertising model, the buying and selling process takes place offline. Buyers and sellers—usually the advertisers or brands and the publishers—have to negotiate the terms, which can be time-consuming and costly. It can also be hard to measure the impact and return on investment (ROI) of offline marketing campaigns like billboards or print pieces.
On the flip side, programmatic advertising exists in a digital realm. Buyers utilize an automated bidding system to purchase advertising slots or impressions. The system uses an algorithm to determine ad placements and opportunities in real time. There is far less wasted time spent on negotiations and paperwork.
Programmatic advertising utilizes online, video, and voice ad slots across many markets, including music and video streaming services, television, and digital out-of-home markets.
Now that you have a basic understanding of what programmatic advertising is, the next question is, “What can it do for my business?”
There’s a reason why programmatic advertising is increasing in use and popularity. The benefits of this channel can have a major impact on your business, including:
Now, the world of programmatic advertising is much more complex than we could capture in a short blog article. In future posts, we’ll dive deeper into some of the more industry-specific programmatic advertising tactics that your business can potentially utilize, including lookalike audiences, retargeting, conquesting, and more.
In the meantime, our team is here to answer any questions you have and explore opportunities to utilize programmatic ads for your business.
