Programmatic advertising is a type of online advertising that uses complex algorithms to automatically buy and place ads.
How Programmatic Advertising Works
Programmatic advertising platforms use algorithms to buy and place ads. These algorithms are based on a set of criteria that you, the advertiser, provide. For example, you can target people who live in a certain area, who have visited your website in the past, or who are interested in a certain type of product.
When someone meets your targeting criteria, the programmatic ad platform will automatically place your ad on their screen. This process happens in real-time and is often referred to as “programmatic bidding.”
The Benefits of Programmatic Advertising
Programmatic advertising can be a very effective way to reach your target audience. Here are some of the benefits:
- It’s efficient: Programmatic ad platforms use algorithms to automatically buy and place ads. This means that you can save time and effort on the manual process of buying and placing ads.
- It’s effective: You can target people based on specific criteria, such as their location, interests, or past behaviour. This ensures that your ad is shown to people who are more likely to be interested in it.
- It’s flexible: You can change your targeting criteria at any time to adjust your campaign goals. For example, you could start by targeting people who live in a certain area but then switch to targeting people who have visited your website in the past.
- It’s cost-effective: Programmatic ad platforms use real-time bidding to buy ad space. This means that you only pay for the ad space that you actually use, which can save you money.
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The Disadvantages of Programmatic Advertising
Although programmatic advertising has many benefits, there are also some disadvantages to consider:
- It’s complex: The process of buying and placing ads using algorithms can be complex. If you’re not familiar with how programmatic advertising works, it can be difficult to set up and manage your campaign.
- It’s competitive: Programmatic ad platforms use real-time bidding to buy ad space. This means that you could end up paying more for your ad space if other advertisers are also bidding on it.
- It’s not always accurate: The targeting criteria that you set for your campaign might not be 100% accurate. This means that your ad could be shown to people who are not actually interested in it.
How to Get Started with Programmatic Advertising
If you’re interested in using programmatic advertising, there are a few things you need to do to get started:
- Choose a programmatic ad platform: There are many different programmatic ad platforms to choose from. You’ll need to decide which one is right for your business. Some of the most popular platforms include Google Display Network, AppNexus, and Rubicon Project.
- Set up your account: Once you’ve chosen a platform, you’ll need to set up an account and provide some basic information about your business.
- Create your ad: You’ll need to create an ad that includes images, text, and a call-to-action.
- Set your targeting criteria: You’ll need to choose the targeting criteria for your campaign. This will determine who sees your ad.
- Set your budget: You’ll need to set a budget for your campaign. This will determine how much you’re willing to spend on each ad impression.
- Start your campaign: Once you’ve set everything up, you can start your campaign and start reaching your target audience.
Frequently Asked Questions
Are Google ads programmatic?
Yes, Google ads are programmatic. Google Display Network is a programmatic ad platform that allows you to buy and place ads on websites and apps.
What is the difference between programmatic and targeted advertising?
Programmatic advertising is a type of targeted advertising. With programmatic advertising, you can target people based on specific criteria, such as their location, interests, or past behaviour. With targeted advertising, you can target people based on general criteria, such as their age or gender.
What is the difference between programmatic and display advertising?
Display advertising is a type of online advertising that includes banner ads, video ads, and other types of ad formats that appear when people are browsing the web. With programmatic advertising, you can buy and place display ads using algorithms. With display advertising, you have the option to manually buy and place these ads. But programmatic ads are always bought and placed algorithmically.
Some programmatic advertising can involve display ads, while some display ads can be programmatic. That’s why these two terms can overlap.
Why is it called programmatic advertising?
It’s called programmatic advertising because the process of buying and placing ads is automated. With programmatic advertising, you can set up your campaign and let the platform do the work for you.
Is programmatic advertising good for B2B?
Yes, programmatic advertising can be good for B2B. Programmatic ad platforms use real-time bidding to buy ad space. This means that you can reach your target audience quickly and efficiently. However, display ads can also cause a big influx of low-quality leads for B2B brands, which will negatively impact lead generation campaigns.
Is programmatic advertising expensive?
No, programmatic advertising is not necessarily expensive. The cost of your campaign will depend on the targeting criteria you choose. If you choose narrower targeting criteria, you may pay more per ad impression. However, you’ll reach your target audience more effectively.
Is programmatic advertising the future of marketing?
Some experts believe that programmatic advertising is the future of marketing. And with the introduction of Performance Max, it’s clear that Google are moving towards a more automated system for buying and placing ads across all channels. Because programmatic ad platforms use artificial intelligence they can learn and optimise your campaign as it runs, spotting subtle trends and making changes that would be difficult for a human to do.