Programmatic Advertising

What is Programmatic Advertising?

Programmatic advertising is the automated buying and selling of online advertising. Programmatic uses software to enable brands or agencies to purchase ad impressions on publisher sites or apps. In simple terms, it streamlines the digital media buying process. One of the main benefits is that it displays the right ads to the right audience at the right time. In addition, it is also a great way to retarget potential customers that visit your site. Considering only 2% of visitors to your site convert on their first visit, having the ability to target and bring back the other 98% is a huge opportunity for your business. Some location slots include digital out-of-home (DOOH), display, online, streaming, TV, video and voice ads.

 

Advantages of Programmatic Advertising

  1. Real-Time Insights
  2. Enhanced Targeting Capabilities
  3. Improved Transparency
  4. Budget Utilization
  5. Ad Fraud Protection

 

Real Time Bidding

The majority of programmatic advertising is real time bidding. It allows for faster and more efficient targeting. In addition, the only people seeing your ad are in your target audience. With the help of the real-time-bidding process, we can reach a greater audience with a smaller budget.

With real time bidding the ads slots are open to everyone and sold through an auction. So, even though the highest bidder wins the ad slot, one of the benefits of this type of programmatic advertising is that the winner only pays the exact amount needed to win the slot. For example, the winner will only pay $.01 more for the ad than the next highest bidder even if they bid substantially more. This minimizes the cost of the placement to the lowest amount possible to win the bid. 

 

Other Types of Programmatic Advertising

Programmatic Direct

Also known as programmatic guaranteed, programmatic direct is similar to traditional ad buying. With direct, the advertiser negotiates directly with the publisher. This form allows both parties to come to an agreement prior to the ads being placed.

Private Exchange Buying

Private exchange buying (PMB) is a marketplace where publishers invite certain advertisers to bid on their ad slots. It is a way to go around the real time buying platform and pre-negotiate deals.

Preferred Deals

In this instance, advertisers buy ad inventory at fixed prices before the slots are made available elsewhere such as auctions. They negotiate the deals with the publishers and are able to choose where the ad impressions are shown upfront.

 

Future of Advertising

Programmatic advertising is the future of advertising. Considering this, innovation in the space is a critical part of digital marketing. That being said, at Aleada Media Group, we are constantly using new and effective technologies to help ensure your success. Using AI automation and machine learning in this way allows us to target the right customer with the right ad at the right time.

By taking care of the ad buying process, Aleada Media Group helps you spend your precious time on other important activities. For more information and a non-obligatory quote, contact us today!

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