Programmatic Advertising: A Speed Guide to Success

Programmatic advertising is upending the way marketers are buying ad space and targeting their intended audiences. It may sound technical but it’s one of the best, most targeted, and data-dependent ways to get a highly-targeted message in front of an audience at the best possible time.

Before we discuss the pros and cons of it, let’s take a closer look at what programmatic advertising is and the ways it can help your business.

Whether you’re a digital ad veteran, or just beginning in the space, this guide will take you through what programmatic advertising is, why it’s important and how to use the technology to boost your marketing program.

What Is Programmatic Advertising?

At a basic level, programmatic advertising technology automates the process of buying and selling ad inventory in real time. Through algorithms, machine learning, and data, it optimizes the placing of ads on multiple platforms, including web pages, mobile apps and social media, doing away with the need for time-consuming manual negotiations.

Programmatic ads cut the human element out of the old-fashioned crackdown of price and media placement negotiation and instead use demand-side platforms (DSPs and SSPs, which stands for supply-side platforms) to automate ad placement efficiency so that separate ad campaigns don’t mean separate ROIs.

How Does Programmatic Advertising Work?

Here is a simplified overview of how that process works:

Advertiser Input

Advertiser provides target audience attributes (e.g., an age, a location, interests) and a campaign objective to a demand-side platform.

Real-Time Bidding (RTB)

Advertisers compete for ad placement in real time, with the campaign’s goal used to determine which ad has the greatest likelihood of reaching its goal.

Ad Placement

Bidding: The highest bidder will have his ads shown to your audience in competently formatted HTML5, video or fullscreen/ native ad types.

This all happens lightning fast, in milliseconds, to make the best placements within the budget constraints placed on the DSP.

Why Marketers Love Programmatic: Efficiency, Effectiveness and More

More than just buzz, programmatic advertising is game-changing for growing businesses’ digital marketing campaigns. In fact, many marketers are asking, “Why is programmatic advertising important for modern businesses?” The answer lies in its ability to deliver real-time optimization, precision targeting, and cost-effective reach—something traditional advertising simply can’t match.

Real-Time Optimization

Whereas traditional advertising buys are based on static placements, programmatic platforms look at campaign performance in real time. This means that marketers can adjust and optimize in the moment for better reach and performance.

Precise Targeting

Marketers can target audiences with granular targeting by demographics, behaviors, geography and device use. This sort of accuracy translates to less ad dollars spent on unqualified leads.

Broad Reach Across Channels

The concept of programmatic applies to all forms of digital media from websites, to mobile apps, to video streaming and even Connected TV (CTV). This allows advertisers to target people where they are engaging most.

Cost Efficiency

Because ads are bought and sold in real time with a pricing algorithm, programmatic ads purportedly provide added transparency and allow advertisers to get better deals, paying only as much as your impression is worth.

Data-Driven Insights

Campaign performance is not just guess work. Through detailed analytics and reporting that is integrated into existing tools, programmatic advertising solutions can also offer valuable insights into how your target audience views your creative and what to improve on for your next campaign.

Types of Programmatic Advertising

Programmatic campaigns are not created equal. Some that you may consider, depending on your business goals are:

Real-Time Bidding (RTB)

Real-time bidding is also referred to as open auction, as multiple advertisers can bid for ad inventory in real time. It’s an efficient and cost-effective way to reach large or niche audiences.

Private Marketplace (PMP)

Private marketplaces are invite-only auctions in which certain advertisers are given the opportunity to bid on premium ad inventory. These are employed most often by brands that value exclusivity and quality placements.

Programmatic Guaranteed

This is a guaranteed buy, in which the ad position and exposure were set and is independent of any auction. It’s a great solution for campaigns that need to remain top of mind on premium sites.

Programmatic Native Ads

They are naturally integrated into a website or app, to provide a more interactive and non-disruptive advertising experience.

Programmatic Video Ads

These visually appealing ad formats are in-stream video ads, out-stream video ads, and may even be CTV ads. Video ads tend to have slightly better clickthrough and engagement rates.

Programmatic Advertising Hurdles

As with any marketing plan, programmatic advertising does have challenges.

Ad Fraud

Problems such as click fraud or bot traffic might pad ad impressions and blow budgets on wasted ad dollars. Fortunately, there are advanced anti-fraud tools and third-party verification platforms in place that can solve these challenges.

Privacy Concerns

The proliferation of stricter rules like GDPR and CCPA means marketers have a responsibility to adhere to data privacy laws and work with customer data responsibly. Most programmatic platforms have been adopting rigid policies to safeguard consumer privacy.

Learning Curve

One of the toughest humps for a programmatic ad newbie to get over is the technology and terminology. But onboarding is available and resources to learn how to use them are plenty in most DSPs.

How to Begin with Programmatic Advertising

STARTING BUILD.

Here are some new moves to help you master programmatic buying and make your digital campaigns an even better reflection of where our culture is headed, advertised-wise.

Define Clear Campaign Goals

1. Identify the goal of your campaign.
   Do you want to send traffic to your website, get app installs or drive sales?
   Setting defined targets will help you with strategy.

Choose a DSP

Choose the demand-side platform that best fit your requirements and available budget.
Some of the most popular DSPs are Google Display & Video 360, MediaMath, and The Trade Desk.

Build Audience Segments

Build detailed audience segments with your first-party data or third-party data sources.
Let demographics and behaviors guide targeting.

Set Realistic Budgets

Begin small and grow as you see results.
For example, test different bidding preferences, toggling these on and off until you reach the right balance between efficiency and bid type and performance.

Test and Optimize

A/B test (Split test) 2 or more ad creatives, placements or targeting parameters.
Regularly check dashboards to see where you can improve and adjust your campaigns accordingly.

Partner with Experts

If the process seems overwhelming, you can also work with a digital marketing agency that has experience with programmatic campaigns.
Their know-how can help you avoid some costly gaffes.

Riding the Digital Advertising Tsunami of the Future

Programmatic advertising isn’t just a nice-to-have toy for an elite set of marketers, it’s increasingly becoming the norm for anyone who wants to up his or her advertising game.

“Given its high returns and unparalleled insights into audiences, the approach has the potential to change the trajectory of how companies of all sizes interact with their customers.”

By knowing the basics and hurdles and taking a strategic standpoint, you can put your brand in a position to succeed in a cutthroat digital market.

Now, it’s time to market quickly, accurately, and uniquely. Begin researching programmatic platforms today to stay ahead of the curve.