What exactly IS Programmatic Advertising?

What exactly IS Programmatic Advertising?

Programmatic Advertising. You’ve heard the words, you have a rough idea of what it is… but there is still some confusion within the subject. So, let’s keep things simple.

Programmatic Advertising is a fancy term for the automated purchase and fulfillment of digital advertising, using more software and less humans.

But what does that mean?

Back in the day, marketers spent way too much time finding suitable spots for our online ads. Then we’d spend even more time chatting to the owner of the ad space, negotiating terms and learning the name of their pet iguana. Basically, running an ad campaign was comparable to securing a stall at the local market.

Now imagine you have a cool robot that can do the legwork for you. The robot (who we’ll call Bob) knows exactly what your customers like and where they might be, and he’ll go to any market in the world to set up your stall. Instantly.
This is programmatic advertising! You can serve ads to any available ad space, in real time, to an audience that you specify based on your goals and knowledge.

Of course, you need to oil your robot, and in this case the oil is data – lovely, clean, relevant data about your audience.

Real time bidding (RTB)

Imagine, your ideal customer lands on their favourite blog, and there is ad space available! With real time bidding, you can bid on that space while your customers page loads, so they’ll see your ad instantly. Now imagine bidding on millions of these ads in a millisecond… Sounds like a job for automation (or Bob).

Programmatic direct

A bit like Wall Street – you purchase ad space directly, then run the ads using programmatic software. This style is on the increase as ad space quality can be higher.

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