How can programmatic advertising help you?

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Programmatic advertising is a form of digital marketing that uses software and data to automate the buying and selling of online ads. It can help you reach your target audience more efficiently, optimize your campaigns in real time, and measure your results more accurately. In this article, you will learn what programmatic advertising is, how it works, and what benefits it can offer you.

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Rajat Gupta

Marketing & Advertising Business Manager
Janet Brandon

Technical SEO Specialist at Experian, author and owner of Green Fingers blog, and Author of 'Mastering ChatGPT: for…
Pooja Shetty ?

Strategic Marketing and Communication Leader IMEA@ Lubrizol | Driving Growth with Strategic Branding and Marketing…

1 What is programmatic advertising?

Programmatic advertising is the process of using algorithms and artificial intelligence to match advertisers with publishers based on their audience data, preferences, and goals. It eliminates the need for manual negotiations, contracts, and intermediaries, and allows advertisers to bid for ad space on websites, apps, social media, and other digital platforms. Programmatic advertising can be done through different methods, such as real-time bidding (RTB), private marketplaces (PMP), and programmatic direct.

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2 How does programmatic advertising work?

Programmatic advertising works by using a technology stack made up of various platforms and tools that facilitate ad transactions. Demand-side platforms (DSPs) allow advertisers to create, manage, and optimize campaigns, as well as bid for ad inventory from multiple sources. Supply-side platforms (SSPs) let publishers sell their ad inventory to advertisers and set pricing and targeting criteria. Data management platforms (DMPs) collect, store, and analyze audience data from sources such as cookies, device IDs, and third-party providers, helping advertisers and publishers segment and target their audiences more accurately. Ad exchanges are digital marketplaces that link DSPs and SSPs, enabling the auctioning of ad inventory in real time. Ad networks are intermediaries that aggregate ad inventory from multiple publishers and offer it to advertisers at a fixed price.

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Rajat Gupta

Marketing & Advertising Business Manager
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DSPs, SSPs, and DMPs are the primary participants in the transactions of buying and selling of digital ad inventory. What is important to know is that these transactions are based on an "Auction" model where many advertisers participate in bidding of the available ad inventory made available by the publishers. The entire process is automated and spans less than a few milli seconds (Wow!). There are also supporting participants in the form of third party data providers like Oracle BlueKai and also third party vendors who specialize in functions like ad verification like Integral Ad Sciences (IAS).

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3 What are the benefits of programmatic advertising?

Programmatic advertising can provide many advantages, such as increased efficiency by automating the ad buying and selling process, and reducing human errors and frauds. It can also deliver more effective campaigns through data-driven personalization and real-time optimization. Additionally, programmatic advertising can give you more control and visibility over your campaigns, as well as help you reach a large audience across multiple channels and formats.

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Janet Brandon

Technical SEO Specialist at Experian, author and owner of Green Fingers blog, and Author of 'Mastering ChatGPT: for Marketers, Content Writers and SEO Professionals'
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Programmatic advertising offers substantial benefits in today's marketing landscape. Its automated ad buying and selling streamline operations and minimize errors and fraud. For instance, an e-commerce brand can use programmatic advertising to display personalized product recommendations, leveraging user preferences for higher conversions. Real-time optimization allows agile campaign adjustments, like a travel company shifting focus from tropical getaways to ski vacations as seasons change. This data-driven approach optimizes resource allocation and message tailoring, marking programmatic advertising as a pivotal tool in precise and effective modern marketing.

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Rajat Gupta

Marketing & Advertising Business Manager
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Unlocks Inventory: Programmatic Advertising and the platforms that function on it like DV360 help unlock a lot of digital ad inventory that would normally not be available via basic platforms like Google Ads Manager. Test & Learn: A/B testing evolves in the realm of programmatic advertising due to its controllability and data aggregation capabilities. Custom Algorithm Bidding: Personalization of your budget delivery for your programmatic campaigns based on your own custom algorithm that tells the system what to buy, when to buy, how much, and when not to buy, is simply unmatched.

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4 What are the challenges of programmatic advertising?

Programmatic advertising can be a complex and challenging endeavor, requiring investments in training and education to understand and implement the technical and operational aspects of the industry. Quality and safety risks may arise due to lack of control over ad inventory, audience, and content, such as low viewability, brand misalignment, ad fraud, and data privacy violations. Additionally, the dynamic and unpredictable nature of the market may lead to increased competition for campaigns, resulting in rising costs, limited availability, and changing consumer behavior.

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Rajat Gupta

Marketing & Advertising Business Manager
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Ad Fraud: Unlocking digital ad inventory has its downside as well! Everyday there are thousands of websites that are made live everyday that do not have basic ads.txt validated which leaves us as advertisers vulnerable to ad fraud.

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5 How can you succeed with programmatic advertising?

Programmatic advertising can be an effective way to grow your business, if you follow some best practices. Firstly, you should define your goals and KPIs, and align them with your budget, audience, and message. Secondly, select the partners and platforms that suit your needs and objectives. Research their reputation, capabilities, features, and fees to make sure you get the best value and quality. Finally, monitor and analyze your campaign data and results to improve your decisions and actions. Experiment with different variables such as bids, creatives, targeting, and timing to optimize your campaigns based on the insights and feedback.

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Pooja Shetty ?

Strategic Marketing and Communication Leader IMEA@ Lubrizol | Driving Growth with Strategic Branding and Marketing Communication | 14+ years of experience in Brand Building and Product Management
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Two ways to level up in programmatic Advertisements: 1.Continuous Improvement : If you feel you will start getting results from day 1 you are wrong you need to follow PDCA cycle to be successful. 2.A/B Test : Having two approaches and then identifying the best approach can be the best bet

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Rajat Gupta

Marketing & Advertising Business Manager
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Running programmatic campaigns is not a guaranteed success. Performance can also depend on a lot of factors such as Geography, market seasonality, your creatives, brand reciprocation, and what not! So, always aim to look at understanding what is working for you, what isn't, what can be done to make an impact now, and what can be done in the future. Data Analytics is your guiding light here, do not be afraid to trust it! :)

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can programmatic advertising help you?

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6

1 What is programmatic advertising?

2 How does programmatic advertising work?

3 What are the benefits of programmatic advertising?

4 What are the challenges of programmatic advertising?

5 How can you succeed with programmatic advertising?

6 Here’s what else to consider

Advertising

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How can programmatic advertising help you?

1

2

3

4

5

6

1 What is programmatic advertising?

2 How does programmatic advertising work?

3 What are the benefits of programmatic advertising?

4 What are the challenges of programmatic advertising?

5 How can you succeed with programmatic advertising?

6 Here’s what else to consider

Advertising

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