It is the buying and selling of advertising in real-life using AI and machine learning. Before programmatic advertising, the ordering, setting up, and reporting on ads had to be done manually which was expensive and unreliable. Now with the help of algorithmic software, the process has become much more efficient.
Programmatic advertising connects the publishers and advertisers. The publisher puts ad impressions up for auction through a supply-side platform (SSP). When an advertiser wants to buy an ad space to promote their brand, they get in contact with their programmatic ad agency. The agency would then use a demand-side platform (DSP) to automate the purchase of ad impressions. DSP is a type of software and a powerful marketing automation tool that allows an advertiser to buy advertising with the help of automation. The software also allows advertisers to target certain audiences taking a variety of factors into account, such as demographics, location, user behavior and more. Through the DSP, the advertiser enters bids for ad space and automatically allocates ad impressions based on the bid price and audience targeting preferences. The process takes just 100 milliseconds to complete the bidding process.
Programmatic advertising has its benefits. Here are a few:
Programmatic advertising provides a large reach to marketers. It offers an opportunity to reach an incredibly wide and diverse audience, depending on the needs of the advertiser.
Programmatic advertising provides transparency that allows them total visibility to marketers over the campaigns. Advertisers and publishers are given real-time access to data about ad placements and activity.
Transparency contributes to the efficiency of programmatic advertising. Data access in real-time means that marketers can optimize ad styles and make the necessary adjustments in order to effectively make conversions.
Programming advertising is increasing every year. 65% of UK and European brands use programmatic advertising. Many ad-tech companies are using programmatic advertising to help marketers achieve their goals.
This rising trend is very beneficial for small brands. Programmatic self-service platforms assist smaller brands to compete with companies with larger budgets. With the mentioned advantages, we’re sure to see this trend on the rise in these coming years.
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