If you use online advertising to create or increase awareness of your brand, increase your product sales, increase you website traffic or increase you offline customer calls, etc. you must have heard about “Programmatic Advertising”. In this article, I am going to help you decrypt this area of Digital Advertising and it’s benefits.
Programmatic advertising is one of the newest advertising methods in digital marketing and unlike traditional methods, it is an automated marketing method based on real-time bidding on advertising inventory and targeting specific customers in a specific context.
In the other words programmatic advertising meaning includes the following: The process of using technology to buy and sell ad inventory through an automated and data-driven procedure. It also represents most types of ad spaces on all screens including video, mobile, native and display ads. The term gets used a lot within the digital advertising industry and often relates to areas such as real-time bidding (RTB), remnant inventory and open auctions.
How does programmatic advertising work?
Once an ad is bought with programmatic advertising, the algorithms evaluate user analytics, on the following basis:
Behavior
Engagement level
Social engagement
Location
Time per visit
This data helps the system in planning and determining what ad content is relevant to a particular user. Accordingly, the ad is displayed as an impression on the page. The aim of the ad is to attract user to click on it.
For instance, a user is scanning some blog related to “baby food”. The ad tech system evaluates the user and displays an ad related to “offers on baby food item” or “baby food pouches”.
Thus, by targeting ads to specific users, programmatic advertising can increase efficiency of an ad campaign.
Example of programmatic advertising
Let’s consider the following scenario:
A company wants to sell designer wear for women. It hires a programmatic advertising platform that can identify consumers by factors like:
Gender
Age group (18-35)
Interests
Shopping habits
Behaviors (read fashion blogs at late night)
Device(laptop/smartphone/table)
The platform uses real-time data to analyze and identify the most suited audience for the campaign. Personalized advertisements will then be displayed based on the unique interests and behavior of the consumers.
Digital ad inventory is bought through an auction on whatever is available across different platform.
Advantages of Programmatic Advertising
Better identifies the target audience: Advertisers can directly reach their ideal consumers for any given goal.
Flexibility and optimization: The opportunity to draw insights and adjust ads while a campaign is running.
Improved targeting capabilities: Extensive data and algorithms allow to place targeted ads with high precision and accuracy.
Increase audience access: Programmatic advertising offers growth in potential reach.
Drawbacks of programmatic advertising and how to surmount them?
Inasmuch as programmatic advertising is great and all that, it is being run by machines and that often means that certain things can end up where they should not. Let’s explain.
Many advertisers have highlighted certain things that they battle with such as:
Ad blockers: Most internet users complain about how the ads pop up and so have resorted to using ad blockers. 47% of marketers complain about this problem.
Fraud: At times, marketers pay for programmatic ads but the publishers fail to fulfil their end of the bargain. This is why you should work with only trusted sites.
Privacy issues: Privacy concerns have arisen as programmatic ads are based on individual internet users’ information.
Questionable sites: At times, brands have complained that their ads appeared on sites or content that went against their core values. This is why when using platforms like DSP, the advertiser should make use of blacklists to screen out certain categories of sites and whitelists to state their preferred site categories.
Considering these issues, advertisers will have to adopt methods that will not be considered as intrusive. Already, certain publishers have begun barring internet users with ad blockers from visiting their sites but a more sustainable approach is advised. Advertisers should ensure good planning and that they properly tailor their content so that only those who might be interested will be retargeted by the ads.
Lastly, programmatic advertising is one of the methods that will soon become widespread and we have no choice but to use it. To overcome the existing challenges, Winnovest Digital Marketing Department will help you to lead the right audience to your business's funnel shop according to this method
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