Ultimate Guide To Learning Programmatic Advertising6 mins - Introduction
Programmatic Advertising has become increasingly popular in today’s world. Lately, a lot of people are resorting to programmatic advertising to do their online marketing and are letting go of the old traditional methods. Even though it has become extremely popular and has become more of a ‘buzz word’, most people are still unaware and unfamiliar with it. So, what really is programmatic Advertising and why is it needed? Let’s look into it in detail:
Programmatic advertising can simply be understood as the modern way of buying ad and display space with the use of artificial intelligence. The use of machinery and software makes the process of buying the ad simpler, faster and more efficient than the traditional method that requires human intellect and skills such as negotiations, proposals, requests, and quotes, etc. This modern technology helps you to buy digital ad spaces and campaigns easily and effectively, without any hassle. Lesser human involvement means fewer mistakes and delays in the process, guaranteeing increased efficiency and transparency for both parties, one who advertises and the other who publishes. Although the process is highly automated, the need for human intellect has not been eliminated. With the help of this technology, humans can help in planning ads, improving the ads and optimizing those ads, which ultimately helps increase the efficiency and effectiveness of the entire process.
The biggest drawback of traditional advertising channels is that they only have their own sites where they show their ads. This means that all other sites that are not part of the network will not be shown or displayed. The same also applies to video ads. This is where programmer advertising helps you by being multichannel. It provides you with access to several ads and websites in various formats. You can advertise wherever you want to, be it mobile phones, laptops, desktops, tablets, and apps.
According to IAB estimates, the expenditure on programmatic advertising has increased from 28% in the year 2013 to 80% in the year 2018 and currently exists in different channels such as mobile, videos, display and other digital platforms. So, who uses Programmatic advertising?
Previously, big companies that had media agencies and a huge budget only used programmatic advertising but in the last couple of years, it has become so popular that it is also being excessively used by smaller brands across the globe.
Once you fully understand what programmatic advertising is, the next most important question that arises is, ‘How does programmatic advertising work in real life?’
When there is space for an ad on a website, the data that is gathered about the user and the data of the webpage are constantly sent back and forth for ad exchange. Then an auction takes place and everyone makes a bid. The highest bidder gets the ad space and all this process happens extremely fast, almost in milliseconds, without any delays.
So, is programmatic advertising success or a failure? To briefly answer this question, we can simply and safely say that it has been a great success because it gives a high level of efficiency and effectiveness of the process. According to the estimates in the US, the ad spending on programmatic advertising was $33 billion in 2017. However, $24.25 billion was spent through private market places. This is particularly because, in private exchanges, buyers exercise more control over their expenditure. The software is highly efficient in terms of time, money and resources. Since it plays a great role in monitoring and improving different areas of your ad, it is very important to let go of the traditional ways and opt for programmatic advertising.
Then there comes another important concern, which is how one can really do programmatic advertising? There are a few things that need to be kept in mind to be able to do this successfully. The first thing is to be well aware of your market place. As you are entering into a new domain, it is very crucial to do your research and get to know about it in detail.
The second most important thing to do is setting up goals and objectives. Digital marketing requires setting up goals and objectives from the beginning. This can be done by using existing data and information to make plans and strategies, both long and short term.
As programmatic advertising is heavily dependent on algorithms and human intellect, this can cause the ads to sometimes appear in inappropriate places. It is very important to make sure that the blacklist of your demand side is thoroughly monitored and kept up to date, to avoid inappropriate sites. Some platforms provide you with an opportunity to completely exclude certain categories from spending on the ads. However, if your product is sensitive, you can use a white list. This will clearly provide you with access to the sites that are approved rather than those that are unapproved or denied. This might turn out to be a bit more expensive but it saves your time and effort to a great extent and ultimately provides ease and convenience.
Last but not least, it is extremely important to monitor fraud. Frauds are very likely to happen and it might cost around $6.5 billion to an advertiser, which is quite a huge amount. This stresses the importance of monitoring fraud. In the digital world, programmatic ads are known to have a 16% fraud ratio, which is significantly lower in comparison to other kinds of display ads.
In light of the above-mentioned data, it can easily be concluded that programmatic advertising has numerous benefits over the traditional advertising approach. Over time, it has become extremely popular and well known because of the efficiency it gives.