Ads are an ever-present part of our online experience. As you scroll through your favorite news site or browse a store online, you are bound to encounter a few. Have you ever wondered how those particular ads came to be placed in that particular spot? Most likely they were purchased programmatically.
What Is Programmatic Advertising and How Does It Work?
Programmatic advertising is the use of software algorithms to purchase digital ad space on web, audio, and television streaming platforms, as well as
in-game apps.
How Programmatic ad buying works step by step:
It is a highly efficient process of buying ad space because in an instant the software completes a substantial amount of menial work that used to have to be done by humans. Now humans are able to focus on improving the ads and optimizing the campaigns ensuring much more effective advertising.
The ability to target audiences based on demographic information, browsing behavior, and search habits makes Programmatic a valuable tool for advertisers. In a recent report by eMarketer, Programmatic ad spending is expected to increase by over 24% in 2021.
How Are Programmatic Ads Purchased?
There are 4 types of Programmatic media buying:
- Real-Time Bidding (RTB) – An open auction type of ad buying where the highest bidder gets the ad spot. The business advertiser only knows the general category of publisher websites but not the exact one on which the ad will appear.
- Private Marketplace (PMP) – Similar to RTB in how the ad space buying occurs however it is a closed auction meaning the spaces are only available to select business advertisers on select publisher websites.
- Preferred Deals – With this model publishers offer ad space to preferred business advertisers at a fixed rate however it is not guaranteed that the purchase will take place so an auction is still involved.
- Programmatic Direct – Publishers and business advertisers negotiate the terms of the ad space purchase on a one-on-one basis without any bidding process.
What Type of Ad Space Can Be Purchased Programmatically?
The ad space purchased through these buying methods have three main categories – display, video, and native. Display ads are usually placed at the header, footer, or sidebar of a web-page. Video ads can appear before, during, or after other video content. Native ads have many formats as they take on the form and feel of the environment they are in.
Is Programmatic Advertising Right for My Business?
If your business’s advertising goals involve building brand awareness and increasing website traffic then Programmatic advertising could be a tactic to add to your marketing strategy. The targeting and real-time success measurement capabilities make Programmatic advertising an effective tactic for getting the right message to the right audience. Our team at Amplified Digital is ready to help you decide if Programmatic advertising is a good choice to achieve your marketing goals. Contact us today to get the conversation started!