In today’s digital world, catching the eyes of customers is a daunting task. Programmatic advertising has made the process simpler for advertisers to reach their customers in an effective manner. With countless websites, apps and digital properties being viewed on a daily basis, advertisers leverage these platforms to advertise more effectively to their customers.
Programmatic advertising is the automated buying and selling of online advertising.
The automation process makes the transactions efficient and more effective. The programmatic platforms are increasing their inventory and database rapidly in order to serve the advertisers needs. So because of such sophistication you can see the programmatic buying can be done on mobile, desktop, smart TV, tablet, Digital out of home (DOOH) etc.
Advertisers are getting more sophisticated as they are able to target their audience and reach out to them globally. Thanks to the computers and algorithms for making ad buying process more efficient. Ad buying was not so effective and accurate before programmatic advertising.
Let’s look at an example of how advertisers use programmatic advertising
So let say Nike (Advertiser) wants to sell more shoes.
It will reach out to a programmatic advertising agency or platform. This agency or platform will segment the online consumers by:
The agency or platform then utilises the real time data that they have and identifies the appropriate online audiences for the campaign. Once this is done then the online ad inventory is bought through an auction. So all the requirements of the ad buyer are fulfilled and he gets the audience who care about what is shown to them, on multiple devices.
The whole process is done in an intelligent way and smart insights are generated. The whole process is optimized.
Why you should care it?
According to Statista’s recent estimates, programmatically sold advertising was worth 106 billion U.S. dollars in 2019. The projections for 2020 say programmatic ad spend will reach 127 billion dollars and further grow by 20 billion by the end of 2021.
Benefits
There are numerous benefits of using programmatic advertising platform for your digital advertising efforts. It eliminates the guess work from the whole process and both buyers and sellers are able to get data driven insights.
Some additional benefits of programmatic advertising are
Targeted audience– It’s hard to get a platform where your audience is segmented in such a sophisticated way, with geography, demography, behaviour, time and more.
Accesses to Inventories– Advertisers are able to optimize inventory across multiple ad exchanges at once and rest is taken care with the help of algorithms which does the bidding.
Programmatic, the future Advertising?
It enhances the approach that marketers are trying to get in a digital world. With so much of machine learning and data driven insights, reaching the right audience is a technology which has marketer should adopt. If you are not utilizing this technology, the advantage of smart approach is lost. Utilize this channel for better digital advertising campaign performance.