Use of Programming digital marketing in your business

What exactly is programmatic marketing and digital display advertising, and what are the potential for all types of businesses in this area of marketing?

In the more than 15 years since the inception of programmatic marketing, the technology has more than lived up to its original promise of being the future of advertising on the internet. In today's world, though, what exactly is programmatic marketing?

Programmatic marketing is a word used to describe the complicated use of data and machine learning to enable hyper-segmentation based on your customers' behavior, which is now a vital aspect of most omnichannel marketing plans.

It's fascinating to watch programmatic grow in importance because as technology advances, marketers are exposed to an increasing number of options to locate and engage their target customers. As a result, programmatic marketers will need to stay on their toes in order to stay abreast of the latest trends and developments.

Programmatic marketing is becoming increasingly popular in today's digital age. In fact, the price of gold is expected to rise by more than a third by 2023, reaching $133.04 per ounce.

The amount of programmatic expansion that has occurred in in the previous five years has been enormous. Global programmatic advertising spend has more than doubled from where it was five years ago, and is expected to reach $155 (US) billion by 2021.

What is programmatic digital advertising? 

When it comes to marketing, programmatic advertising is a technique that makes use of technology to buy and sell internet advertising space. In order to offer adverts to the most appropriate people at the most appropriate times, it is beneficial to target segmented audiences with real-time data in ways that humans are unable to accomplish on their own.

Talk about programmatic can become fairly voluminous in terms of technical terms used within the business. To be precise, companies and agencies use a DSP to choose which advertisements to purchase and how much they will pay for them, while publishers use an SSP to sell ad space to advertisers. These two platforms, which are supported by massive amounts of data, match up in real time in an ad network in order to show an ad onto a website in front of a consumer.

And what makes each of these purchases appealing to advertisers is the level of customisation, targeting, and data-driven technology that goes into them. The use of programmatic digital advertising, rather than purchasing 100,000 impressions on a single news website, allows you to purchase 100,000 impressions across several sites, each of which targets a specific audience demographic. You can choose to target a specific age demographic of people on a specific day and at a specific time who have a specific interest that is directly related to the product you are trying to sell. You can also choose to target a specific day and time of day who have a specific interest that is directly related to the product you are trying to sell. You can even target this individual with a specific creative version of the advertisement that you are now running. The benefits of programmatic advertising are undeniable, and there's no reason to continue to gamble with your digital advertising budgets because the statistics supports it.

Different ways to Buy Ads Programmatically

Because RTB is a subset of programmatic digital advertising, the purchasing and selling of ads programmatically mirrors the RTB procedure explained above. However, there are three more (total of four) ways to buy advertisements programmatically: 

• Open Auction (RTB): hundred or buyers competing
• Private Auction: Negotiated minimum price, Invitation only auctions, Non-guaranteed volumes.
• Preferred Deals: Fixed price, One-to-one deals, Non-guaranteed volumes.
• Guaranteed Deals: Fixed price, one-to-one deals, guaranteed volumes

The latter three buying choices are known as programmatic direct, and as these are privately negotiated arrangements, the phase where the ad travels to the open exchange is plainly omitted. These various purchasing choices all have distinct advantages dependent on the campaign's overarching goal.

"So programmatic relies on computers or robots?" you might wonder after knowing about the history of programmatic and what it is. And it's at this point that the significance of selecting a strategic programmatic partner becomes crystal evident.

How does Programmatic Marketing work?

When someone clicks on a web page with programmatic advertising space, the page's publisher auctions off an ad impression in an ad marketplace. After that, the ad marketplace holds an auction among marketers that want to show an ad to the customer who just clicked on the page. Many advertisers may compete in this auction, and whomever is prepared to bid the most at the end wins the auction, and their ad is then displayed to the customer when the website loads.

The auction can be completed in the milliseconds it takes for the page to load because the process is automated and the maximum price each advertiser is willing to offer for the impression has already been programmed in. Our easy-to-understand infographic walks you through the six phases that make up programmatic marketing.

What are the advantages of Programmatic Marketing?

Programmatic marketing gives up a slew of possibilities that would have been impossible to achieve if ad placement had been done manually in the past. Advertisers can buy digital media without having to pre-negotiate a price, so they just pay for the relevant impressions they receive. They can also sign up for a minimum number of impressions or a minimum budget, making digital advertising more flexible, and they can acquire digital media from several publishers, lowering administrative costs.

However, the benefits go far beyond simply making ad buying more convenient and flexible. People can be targeted significantly more effectively than before thanks to programmatic marketing, which means bids are set for each individual that visits the site.

Programmatic technology can use customer data to determine what resonates with each individual and target them on the sites and at the times they are most likely to engage.

Interested in learning more about how Think Tank Dublin industry expertise will ensure your programmatic digital advertising campaigns reach new heights? Let’s talk!