What Is Programmatic Advertising

How Advertising Is Changing

Programmatic advertising uses automated technology and algorithmic tools for media buying, differing from traditional methods through its use of automation.

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Have You Heard The Talk

If you use online advertising for yourself or your business, you may have heard people talk about how programmatic advertising and the Internet of Things are changing digital marketing.

However, even if your ad is well-designed, it won't reach its full potential if it's not placed in the right location and targeted toward the right audience.

If you're among those who nod along when people praise programmatic advertising but don't fully understand why, you're in luck. This article will explain what programmatic advertising is.

What Is Programmatic Advertising

Programmatic advertising is a digital advertising method that uses software to purchase advertising space. Unlike the traditional way of requesting proposals and quotes, programmatic buying uses algorithmic software to make purchases and sales online.

This method is advanced and uses traffic data and online targeting to increase impressions and improve ROI for marketers. It's a powerful tool that can benefit both small and large businesses. Even if your organization is small, you should not overlook this option.

Despite being highly automated, programmatic advertising still requires some manual work like preparing content, ad types, and ad tags. However, it frees up valuable time for marketers to optimize and improve their advertising, leading to successful campaigns.

Best Programmatic Advertising Platforms & Tools

Programmatic advertising is a highly effective tool, with global spending expected to hit $493 billion in 2023 with the US projected to exceed $200 billion in 2023 alone.

Existing Platform Capaibilities

One great thing about purchasing an enterprise-level email service provider, is most of them have programmatic automation built into them. Platforms like Marketo, SalesForce Marketing Cloud (Pardot), HubSpot and other popular email platforms.

Third-Party Platforms

There are a number of software platforms that make this process of purchasing and scaling advertising easy. One software I highly recommend checking out is StackAdapt.

Create exceptional campaigns for the most engaging customer experience. StackAdapt is designed around the three core pillars of programmatic: planning, executing, and analyzing. With an open and flexible DSP, media teams are more productive and drive the best results for their clients.

Why Is Programmatic Advertising Successful

Programmatic advertising is successful because it is an efficient, targeted, and scalable way to advertise.

Spending by US marketers on programmatic ads was over $61 billion in 2019 and increased to $123 billion in 2022, a 102% increase.

This growth is due to a rapid recovery in the industry after the COVID-19 pandemic and advancements in Artificial Intelligence.

Programmatic advertising uses an algorithm to determine the best use of your ad money based on information about your campaign, audience, and key performance indicators.

This eliminates the old-fashioned hit-or-miss campaign design, which was notorious for costing marketers too much money.

With programmatic advertising, the algorithm not only launches your campaign but also monitors ad spending to look for areas of improvement.

If you want to optimize your ad spend, increase your organization's ROI, and resonate with your target audience, programmatic advertising can help you thrive.

Succeed With Programmatic Advertising

How you can make the most of programmatic advertising in your digital marketing campaigns. To begin with, it is important to understand the terminology associated with programmatic advertising.

Setting clear goals is crucial in digital marketing, and programmatic advertising is no exception.

You should analyze your existing data to determine the type of advertising that will best serve your needs and create a strategy accordingly.

Human Programmed Monitoring

It is important to keep in mind that programmatic advertising involves a balance between automation and human intervention. You should ensure that your skilled marketers allocate their time to plan, control, and optimize your buying.

Programmatic advertising can sometimes place ads in inappropriate locations, such as sites that promote fake news.

To avoid this, you should update and monitor your demand-side blacklist regularly. You can also use a whitelist to provide a list of approved sites.

If you use an agency, make sure they exclude low-quality and sensitive sites from having your ads served on them.

Programmatic Advertising Fraud

Programmatic ad fraud is a significant concern for digital advertisers, with an estimated cost of $6.5 billion to $19 billion each year.

To prevent fraud, you should prioritize traffic quality over reach and ensure that your ads comply with privacy regulations. It is essential to avoid generating fake traffic and be compliant with privacy policies.

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