Let Programmatic Advertising help you!

It is not an easy task to effectively grab the attention of consumers in today’s digital ecosystem, so today we are going to talk about programmatic advertising. There are millions of websites, applications, and digital properties that are displayed on multiple channels, every day.

Using separate platforms to advertise on different channels and choosing the best places to place your ads in the digital world is an increasing challenge, here’s where Programmatic Advertising helps you, Programmatic Advertising is an automated process of buying and selling online advertising

What is Programmatic Advertising?

Programmatic ad buying is the use of software to purchase digital advertising. While the traditional method involves requests for suggestions, offers, quotes, and exchanges, programmatic buying use algorithmic software to buy and sell display space. The automation process helps you make the transactions more efficient and more effective and also give you all the option in one base platform.

Devices like mobile, tablets, desktops, outdoor digital boards, CTV, audio devices, etc, can be accessed programmatically with any format and any channel, as the programmatic platforms are expanding their database inventory with the demanding needs and growth of digital use by the marketers. 

It doesn’t make any sense in paying for the ads to get delivered to the wrong and unprofitable audience, programmatic advertising helps you to deliver the ad to the targeted audience at the right time. Computer technology and the data algorithm make the process of buying and selling digital advertisements easier and more efficient without wasting much time on other time-consuming activities. But the marketers have to manually structure the ad tags, which also gives left out time to the marketers to focus more on the ad development to run the campaign successfully. 

Here’s an example of how the Programmatic ad works.

Instead of following the traditional method of advertising and ending up delivering your advertisement to the wrong method, Programmatic Advertising targets the right audience using the data like:

  • Device
  • Demographics 
  • Geography 
  • Behaviors 
  • Interests 

The programmatic platform, then uses real-time data to filter out the high-quality audience who is online, then it auctions for the places where the audience is much interested in, based on the available multiple devices globally this is also called Real-Time-Bidding (RTB), not all the programmatic ads run RTB, but most of them do. Programmatic advertising focuses on personalized ads based on each prospect’s unique interests.

Is programmatic advertising budget-friendly?

Yes!! Compared to the traditional advertising method.

Programmatic ads are traded on a CPM basis, CPM stands for “Cost Per Mille” which means cost per thousand impressions, CPM cost varies according to different aspects and various types of pay-for-performance advertising, basically CPM is the cost a marketer pays for one thousand impressions of that particular ad.

CPM can range differently based on the quality of the targeted audience and level of targeting. The price goes up according to the quality, the higher you keep the quality target, and the more specific target the higher the price goes. It also depends on other factors like the ad format, device, industry, and placement on the page.

On average, the programmatic ads CPM range is around $0.50 – $2 CPM. This is a huge cost benefit compared to other traditional methods of advertising, which costs you around $11+, that’s almost 5x than the programmatic CPM, and if you calculate it with the whole campaign budget then you can stretch the ad budget multiple times than you could in others ways of advertising. 

Pros of Programmatic Advertising:

Programmatic advertising reduces all your digital advertising efforts in multiple ways such as:

  • Reduces the advertising costs
  • Higher ROI compared to the traditional methods
  • Increases the ad impact and efficiency 
  • Less time consuming
  • Optimizes the audience data and targets the right audience at the right time
  • Collects large audience data insights which help you in understanding the audience behavior more closely, and many more.

Cons of Programmatic Advertising:

Although Programmatic advertising comes with many benefits as mentioned above, it also has some cons, and a few of them are:

  • At times inappropriate ad matching
  • Digital traffic Fraud
  • Lacks in human control

We have seen a drastic change in the digital industry in the past years and we will be seeing more development in the coming years, so it’s hard to predict the future of programmatic ads, as there can be more inventions and developments in the digital advertising methods in the future. But now at present, you can take the advantage of programmatic advertising to upgrade your marketing game in the industry.

Ways to Buy Programmatic Ads

The buying and selling process of programmatic ads has four ways and one of the is RTB which we have defined above in this article, so here’s how the list goes:

  • Private Auction: Invitation only auctions, Negotiated price
  • Open Auction (RTB): hundred of buyers compete
  • Guaranteed Deals: One-to-one deals, Fixed price, guaranteed results
  • Preferred Deals: One-to-one deals, Fixed price, results not guaranteed 

The three ways except RTB are referred to as programmatic direct, programmatic direct is the process where the publisher and the buyer make an ad agreement by connecting directly and making a deal of programmatic advertising.

Conclusion

The Covid-19 Pandemic has boomed up the digital industry, now we’re in 2022 and this is the right time to get into Programmatic Advertising and take out the advantages to grow your brand and drive more sales. You can rely on programmatic advertising as it analyses the audience data and works according to the algorithm which spends the ad money on the right place and the right time. 

You just have to do is provide the programmatic solution information about the targeted audience, and the key performance indicators, the rest algorithm will do the work! Hopefully, this article has given you a better view of Programmatic Advertising.