It’s safe to say that advertising has evolved massively over the past few years. That, naturally, is as a result of the internet and technology improving all the while. However, if there is one trend striding ahead of the pack right now, it is automation.
By automation, we do not necessarily purely mean artificial intelligence. For example, programmatic advertising is emerging as an efficient and effective way to reach out to new customers and clients. But what exactly does it mean to advertise in this way – and how might it help you?
Programmatic Advertising: The Lowdown
Programmatic advertising is the art of using a program or software to buy ad space and find lucrative opportunities. In decades gone by, advertising and marketing have been predominantly active pursuits. The programmatic approach is all about intelligent refinement of what works and what doesn’t.
The process generally takes place through an exchange. This means that website owners, publishers, and advertisers, who want to place their adverts enter the transaction. A publisher auctions an impression or space, and the advertiser bids for it. If they win the bid, they win the space.
That’s programmatic advertising in a nutshell. The core to the process is that it is mainly automatic – and incredibly efficient. What’s more, the various ins and outs of the process can get quite complex! The whole chain runs with two sides – the supply side, or SSP, and the demand side, or DSP. Publishers work with the former, and advertisers work with the latter.
When Does Programmatic Advertising Work Well?
As programmatic advertising is, on paper, fairly complex, it’s sometimes difficult to know when it will work best. Ultimately, there will be scenarios where this type of marketing doesn’t connect the dots well enough.
Crucially, programmatic advertising is excellent for niching down. Specifically, if you intend to target specific users or readers based on finite parameters, it’s a fantastic resource. As an advertiser, you can essentially bid for a specific type of person and interest. This means that, ultimately, you make the most of your advertising budget.
Programmatic advertising also works brilliantly if your chosen audience is likely to use multiple channels. Programmatic marketing is available through media streaming as well as through simple banner ads. Therefore, if you know your target is expected to listen to a specific type of music, you can bid for that space.
Programmatic advertising is proving to be popular not only for efficiency but also for relevance. A fundamental problem with broader web advertising is that it can sometimes be too wide and difficult to manage. When you go programmatic, you ensure that you are niching down into particular markets.
Of course, programmatic ads are not for everyone. There’s never any guarantee that they will deliver results if your audience is too broad. Therefore, always be sure to consider it once you have done the requisite homework. Who knows what traffic it might generate for you?
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