A simple way to describe it, programmatic advertising is a way to automatically buy and optimize your digital campaigns, rather than buying directly from publishers.
The idea behind programmatic is a way “to replace human negotiations with machine learning and AL-optimisation ”(Chandal,2019). The intention is to increase efficiency and transparency to both the advertiser and the publisher.
Definition of Programmatic & who uses it?
Programmatic advertising exists in a wide range of digital channels, such as display, mobile, video and social.
–>Let’s go back in time
Back to 1994 when the first ad that was advertised online on what we know today Wired Magazine, but back then HotWired.com and its was a banner from AT&T.
This display ad was a revolution back then!
Here, have a look–>
I bet you tried clicking on it! Cause I did))
Today we look on different aspects that would make a difference in the campaign such as time, days of the week how it should look like what are the best colors and many more details that would make the campaign successful.
Looking back at how the ads were traded before the same way as you would buy a regular magazine ad. An agreement between the salespeople with advertisers in order to place a banner ad on a website for a certain period of time.
Furthermore, this basically meant that the same banner was always displayed no matter who visited it. In 1995 the first central ad server was created, which meant you could choose to be displayed across multiple news websites owned by the same company!
Programmatic advertising, in other words, can be interpreted as programmatic ad buying, as simple as that. Programmatic ad buying eliminates duplicate traffic and human error while giving maximum transparency and optimization opportunities.
The process of programmatic buying is straight forward: set up geo’s, audiences, time of day, and evaluate what’s performing best mid-campaign to narrow down their targeting options & pay only for most compelling impressions. Meaning, programmatic ad buying allows advertiser’s chances to get quality traffic at a fair price, without the need to pay any of agents, distributors, wholesalers, and retailers. Simple=buying is cheaper and more effective.
What are the advantages of Programmatic?
Guaranteed volumes
One amazing aspect of the programmatic campaign is that you know in advance how many impressions a campaign will generate, which is never a guarantee with the standard display, search or paid social campaigns.
Greater audience insights
Since programmatic campaigns require data management platforms to run, which simply means that every single impression that is recorded the audience data is reviewed, evaluated and optimized against. This information becomes available in time, a key element when you can dig in analytics and see how the can it be optimized for better results.
Let’s wrap it up
Programmatic buying is an automated system that allows you to buy individual impressions for advertising. Very simple and straight forward!
Our team is happy to help! 🙂
Drop us an email and let’s work on your programmatic campaign!