If your business uses online advertising, you must have heard individuals discussing how programmatic ads have changed the entire landscape. And till now, you might have nodded sagely when people talk about this, but not really got an idea about it.
Here, we will explain about programmatic advertising and how to do it in the right way.
What is Programmatic Advertising?
Programmatic ad buying, defined in a simple way, is the use of software for buying digital advertising. Whereas the traditional method includes requests for tenders, proposals, human negotiation and quotes, programmatic buying utilizes machines and different algorithms to buy a display space.
However, it is not the whole automation of ad buying procedure. Traditionally, you would have manually prepared insertion orders or various ad tags, which can be unskilled, but labour intensive. With programmatic ads, humans get more time for the improvement and optimization of ad space.
Humans will always be required to plan and optimize advertising, but programmatic advertising means there will be very few ad buyers. However, what the software will mean is that those who are doing their job will be able to plan, optimize in a better way and target their advertising.
However, that does not mean it is perfect. Earlier this year, most of the advertisers took spending from YouTube over concerns that the video platform could not guarantee ads would not be seen on the extremist content.
Ways to do Programmatic Advertising
A) Know about your marketplace- The first important thing to do is very simple: understand what you are doing. As a person on a new venture of advertising, you will be faced with several new terms and ideas, take enough time to know things.
B) Set your objectives- Similarly like digital marketing, it is important to have your objectives set from the initial stage. Utilize the existing data for determining what kind of advertising awareness you require and fix the right strategy. This will help in determining long-term and short-term goals. You will not feel the need for programmatic advertising until and unless you understand why you are doing it.
C) Human touch: Just because programmatic advertising depends on algorithms and machines, it requires human investment. There are various kinds of platforms, some of which provide fully or half-managed services. Others simply offer technical platforms, that helps to run programmatic buying activities by yourself. From there, you will require to allocate skilled people planning, controlling and optimizing your purchasing.
D) Safeguard the brand: As discussed earlier, one of the biggest challenges of programmatic display ads is its dependence on algorithms can make ads appear in the wrong place. Make sure that your demand-side backlist is updated repeatedly and supervised for any type of inappropriate sites. Some platforms permit for the exclusion of the whole categories from ad expenditures, which can prove to be helpful. Another option that can prove to be helpful if your product is sensitive is to utilize a whitelist.
This will provide a list of approved websites. It will also narrow your capability to reach your audience and probably make it costlier, but will ensure no immoral material is linked with your ad. If you are approaching an agency that offers programmatic advertising, make sure they are doing all the things possible to eliminate low quality and sensitive websites from having your ads served to them. There are mainly two kinds of programmatic advertising: Real-time bidding (RTB) and Programmatic direct.
E) RTB: RTB programmatic advertising is an automated procedure of purchasing display ad space in no time, by bidding depending on the target audience whom you want to reach. There are a few vital components used in the RTB. These are:
1. Ad exchange- It is where the inventory of publishers is sold through an auction, bid on and purchased by advertisers
2. Supply Side Platform (SSP)- A supply-side platform (SSP) is a system which allows publishers to access ad exchange and make a list of inventories that needs to be sold out
3. Demand-side platform (DSP)- A demand-side platform is a system that allows agencies and advertisers to access ad exchange auction and do the bidding for ad space.
F) Programmatic Direct: Programmatic direct, also known as Programmatic guaranteed is where ad space is purchased programmatically but is bought in advance, depending on a certain number of required impressions.
What are the advantages of programmatic display ad buying?
The biggest advantage of programmatic advertising is advertisers can be extremely specific about how relevant their ad is to their target audience. As the process takes place within a short span of time and is assisted by automated purchasing decisions depending on the data, it reaches the right target audience at the right point of time and at the right place. This, however, is not possible with traditional advertising.
1) Less chance of human error in media buying because machines aim at the right customer at the right point of time and in the right place
2) Very less hands-on work needed for things like developing insertion orders, which in turn will help you to pay more attention to strategy
3) Fewer salespeople required which in turn makes the whole process cheaper
4) Specific ad messaging for specific audiences is possible
5) Programmatic buying procedure does not reduce the page loading time for the users, which keeps both users and publishers happy
Future of Programmatic Advertising
Since its discovery, programmatic advertising has permitted brands to reach large numbers of prospective clients in no time. The ad purchasing experience is now fast, cheap and simple for the companies that run several digital advertising campaigns.
As programmatic advertising utilizes algorithms to position an ad in a much better way, it saves money and time for advertisers and helps in optimizing the campaign. Programmatic advertising is growing much more than online banners, to include new digital channels like wearables and TV networks.
Advertising nowadays is moving to such a point that is more dynamic and customer-centric. Earlier, the ad space was being manually booked, which included long meetings, too much of negotiations. With the number of publishers increasing overnight, it has become impossible for the advertisers to maintain pace with the supply. Programmatic advertising has made life simpler for advertisers by:
• Leaving the middlemen and simplifying the procedure
• Making advertisement more target-oriented by utilizing the data for audience profiling
• Provides a better ROI
In the coming days, there might be a mismatch between companies that still focus on channel separation and audience segments, and those who follow a consumer-centric view regardless of what communication channel is utilized.
Marketers will develop two vital skills: ability to manipulate new tools for management, execution, and designing of campaigns and skills around the data for a segment, model targets and analyze. With programmatic advertising, the industry is witnessing a decrease in the number of frauds and an increase in the number of spend transparency.
This process is also changing the way companies purchase and create ads for desktop, television, mobile, and other media. There may be certain regulatory challenges, programmatic advertising is going to stay.
One of the possible developments for programmatic will be innovations that are dedicated to wearables. Just imagine walking in the street, going to a store, and then getting a personalized ad if you have their loyalty card with you, for instance.
Programmatic makes it possible for such retailers to target these loyal clients directly, pending their approval and respect of privacy rules, and attract them to visit the store more often or at a certain point of time.
Technology has allowed marketers to enhance their targeting skills dramatically. It is now quite clear that programmatic is difficult to avoid and very necessary to stay ahead of your competitors.
The growth of Programmatic advertising is never going to slow down, therefore test it today and find out how it can benefit you! Before testing it, you must have detailed knowledge of programmatic ads. If you want to know more about programmatic advertising or how it works, join Streamlyn Academy. It is the only institute in India that provides a guide to programmatic ads.
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