Programmatic advertising for beginners

programmatic ads


Learn about programmatic advertising.


What is programmatic advertising?

Programmatic advertising (also known as automated guaranteed or programmatic guaranteed advertising) is any online marketing strategy which uses software to purchase digital advertising space.

Why do I need to know this?

It is estimated that programmatic advertising will account for 80% of marketing spend by 2018.

Benefits of programmatic advertising

Programmatic advertising is more efficient than traditional ad purchasing processes. In the past, the process involved lengthy human negotiations and manual insertion orders, and the chain of transactions involved from an advert’s conception to its eventual publishing made it a hugely inefficient process.

Plus, programmatic advertising solutions such as Real Time Bidding (RTB) and Google AdWords have sped up the process. Businesses can have instant access to ad inventories, total pricing control, immediate delivery and results, as well as access to in-depth performance analytics.

Millisecond auctions

Programmatic advertising allows software to bid for ad space on a webpage as it loads. That means that the auction takes place in milliseconds. Advertisers can use DSPs (Demand Side Platforms), which is fully automated software to work out which ads are valuable to their business.

Perfect your campaign using data analytics

Programmatic buying provides in-depth analytics which advertisers can use to evaluate what’s working best (e.g. times of day, locations and audience). Advertisers can make alternations mid-campaign to get the results they want by narrowing their target in response to the data they’re receiving, and making sure that they only pay for highly effective advertising. This is a big change from traditional ad buying, where businesses were locked in to ineffective contracts.

Social media ads

Facebook, Twitter and LinkedIn all make extensive use of programmatic advertising. These social media giants have huge amounts of data, and have the ability to connect to people across devices. Adverts can be targeted at individuals over various platforms to encourage click-throughs. If someone sees a Facebook ad, a Twitter ad, and then a mobile ad, the chances of them clicking through are much higher.

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