Programmatic advertising is the process that implies using a technology platform to buy and sell online advertising. It helps make decisions based on available data, save costs, optimize advertising campaigns, and improve targeting.
In this article, we’ll unveil how programmatic advertising works, its benefits, types, and how to get into programmatic advertising. Next, we’ll review 5 great platforms and several examples.
How does programmatic advertising work?
The biggest and most important part of the digital advertising space belongs to ad exchanges. They are conducted in an automated manner and involve both parties of the transaction, among them advertisers and publishers. Programmatic advertising improves these relationships and speeds up the process of buying and selling the digital ad space. It applies algorithmic software that helps manage the selling and buying process and the placement of digital ad impressions.
The process starts with a user clicking on a certain site. After, there is an auction where the website owner can put up an ad impression. The next step is bidding for the impression. The advertiser who puts the highest bid gets the ad impression. Finally, the ad appears on the website aiming at conversions. To serve impressions correctly, this type of ad integrates traffic data and effective online targeting approaches. This brings both publishers and advertisers higher ROI and lets businesses prosper.
Now that you know how programmatic ads work, time to unveil the advantages your business can reap if you decide to implement them into your overall marketing strategy.
Benefits of Programmatic Advertising
Digital advertising occupies a very large part of every business since the center of communication with customers is actively moving to the Internet. To thrive in an increasingly competitive environment, companies consider different effective ways to reach their target audiences. According to eMarketer, in 2021 advertisers will buy around 88% of display ads programmatically.
Many marketers prefer this type of advertising for a reason. Programmatic advertising evolves each year and greatly simplifies the process of buying and selling advertising space online. Let’s now review the other pros companies obtain.
The other benefits include:
- affordable price;
- wide reach (different exchanges and networks);
- real-time data;
- targeting opportunities;
- interested audience;
- access to reports about advertising placement and performance;
- access to ad inventory;
- relevant ads for certain audience segments.
So now when you know the benefits, it’s time to explore different types. This step is necessary to figure out which of them can bring you closer to reaching your key business goals.
Types of Programmatic Advertising
There are 4 main types of programmatic advertising and each of them involves a different sequencing. Let’s explore each of them to find out which suits you the best.
- Private marketplace. This type is available only on an invitation basis. In private auctions, publishers prepare premium ad inventory for certain advertisers. The private marketplace is especially popular among websites and publications with a wide audience. The advertisers know the list of websites they can place an ad on. They can estimate the ROI of these ads.
- Real-time bidding. It’s one of the most popular types and it’s often used as a synonym for programmatic media buying. In real-time bidding, anyone who has the highest bid can get the ad slot. Bidders can buy ad space at an open auction. In the real-time auction, advertisers can get the slots they can afford. Although real-time bidding is based on the principle that the highest bidder gets the slot, it doesn’t require this advertiser to pay the bid amount. It asks an advertiser to pay only $0.01 more money than the second-highest bidder. There is also a possibility that your ads can appear on the wrong sites.
- Preferred deals. Before the marketplace opens and the auction starts, an advertiser who needs to place an advertisement should choose a place before it is put up for auction. The negotiations on the pricing and targeting between advertisers and publishers take place before the auction starts.
- Programmatic guaranteed. This type is the closest one to traditional media buying. It implies an advertiser and a publisher who negotiate all the details about ad space one-on-one. In programmatic guaranteed, the parties skip the process of bidding and immediately proceed to negotiations. The main advantage of this type is that an advertiser can choose ad inventory, frequency capping, and price.
Now that you know the features of each type, you might have already decided which of them can help reach your advertising goals. The next thing you need to uncover is how to get into programmatic advertising. Let’s proceed to the next section to make it clear.
How to get into programmatic advertising?
We’ve already explored the fundamentals of programmatic advertising, so it’s time to delve into the process deeper to figure out how you can make use of it.
- Research your marketplace. If you are new to programmatic advertising, the first thing you should do is to explore the market. When stepping into a new area, you can encounter new terms and processes. To make everything right, you should study programmatic ad terminology that will empower you to participate in auctions, manage your ads, and obtain more conversions.
- Define your objectives. Before implementing programmatic advertising, you should have your goals set. You need to be sure that this advertisement will help you in pursuing your objectives. Brands consider programmatic ads to reach leads and customers, enhance brand awareness, increase the visibility of their ads, retain customers, and improve ROI.
- Organize a team of experts. Although programmatic advertising uses technology to run the process of digital space buying, you still need a team of professionals to monitor the process. They also can help optimize the buying process. To reach goals with the help of your campaign, you need to be ready to align technology and people.
- Create a backlist and a whitelist to reach the right audience. Since people can’t control the algorithms, programmatic advertising can sometimes lead to the false placement of ads. As a result, your advertising can appear on the wrong websites. To prevent this, you should update your blacklist with websites that you find improper for your ads. You should also have a whitelist with approved websites. It will help you reach your target audience and avoid getting to the wrong places.
Now that you know the ways to get into programmatic advertising, let’s jump into the 5 best programmatic advertising platforms that will help you buy space for your digital ads.
5 Programmatic Advertising Platforms
Today, you can find plenty of platforms over the Internet. Yet you, as an adviser interested in the success of a business, should choose only the best ones. We’ve prepared a list of 5 effective solutions that will help you buy space for your ads fast.
SmartyAds is a DSP that enables you to leverage an omnichannel package and run personalized ad campaigns. With SmartyAds’ narrow targeting and optimization, you have the opportunity to reach the necessary channels while using the minimum costs. As a result, you’ll have better ROI, conversions, customer engagement, and acquisition.
SmartyAds’ DSP opens a gateway to the ad formats you prefer to choose. For example, banner, rich media, video, or push ad. The platform also allows you to access features such as advanced targeting, retargeting, conversions tracker, list management, and more.
MediaMath is a DSP that enables companies to reach their audiences and attain their SMART goals. The platform is supported by a Brain algorithm that helps predict performance and amount of money for bids. MediaMath assists you in campaign management. With this digital advertising platform, you can handle all aspects of your campaign that entail media, targeting creatives, and more.
It also offers media management. This means that the platform provides you with the necessary tools to shop, activate, and report the media deals from websites. Moreover, you can select the right targeting to reach your main objectives. Segment your viewers to obtain a high-quality audience.
PubMatic provides you with a set of tools that help ensure that your ad campaigns are viewed by humans in a secure environment. The clear interface ensures a seamless user experience, smooth monetization for publishers, and ROI for advertisers.
Amobee enables you to scale with special management tools. You can also deliver high-quality impressions. The platform ensures a brand-safe environment so that you can run your campaigns effectively and meet business goals across open exchange and private marketplaces. Programmatic ads are accompanied by transparency and safety.
Choozle allows you to bring all your advertising campaign efforts to life. The platform provides you with all the necessary tools to plan, execute, and optimize campaigns based on your requirements. The technology lets you see the reports of your campaigns’ performance at any stage of its implementation. Make use of its features that include data targeting, retargeting, connected TV, private marketplace, site, keyword, and category targeting, and many more.
Now that you have the list of platforms to choose from for your company, let’s proceed to the next section to grab some inspiration from examples.
Examples of Programmatic Advertising
To see how these ads work, you need to dive into several excellent examples from famous brands. This section will inspire you to implement programmatic ads into your marketing strategy. So, let’s start.
The famous food manufacturer started leveraging programmatic advertising in 2014. With these ads, the company strived to boost offline sales. The brand’s results were impressive: 70-80% increase in viewability rates, better targeting, maximized KPIs. The advertising company DoubleClick helped the company create targeted campaigns and attract a wide audience.
AirAsia aiming to build trust and boost sales volume succeeded to achieve it with the help of a campaign on Facebook, display, and video ads. The social media platform served as a channel that helped change people’s perceptions of a brand and increase ticket sales. The company’s team created video content since it’s very popular in Asia. The Facebook ad campaign helped the company overcome the hardest times after one of AirAsia’s planes crashed and win back passengers’ trust and confidence. Moreover, there was a 17-point lift in ad recall.
Congrats, now you know the benefits, types, and platforms of programmatic advertising. Follow our guide to get into this type of advertising and grab some inspiration from examples for your future campaigns.
- This article defines the term and unveils how programmatic advertising works.
- In this article, you’ll find some examples.
- This article provides readers with programmatic advertising platforms.
Last Updated: 12.10.2021