What Is Programmatic Advertising in Digital Marketing

MAY, 2024
Social Media Marketing

What Is Programmatic Marketing? (Definition, Advantages, and Tactics)

Programmatic marketing, also known as programmatic advertising, is a way to automatically buy ad space online. It lets you place ads on desktop computers, mobile devices, videos, and apps quickly and efficiently.

The digital world is full of opportunities to reach your target audience. As it continues to grow and change, new techniques are emerging to help you make the most of your marketing budget and attract new customers.

One of the most significant advancements in digital marketing is programmatic marketing. This approach enables you to target specific customers based on the web pages they are currently visiting.

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But what exactly is programmatic marketing, and how does it work? It uses automated systems to purchase and place ads in real-time, focusing on users' online behavior. This way, your ads appear precisely on the pages your potential customers are browsing. How can this benefit your company?

Ready to dive into programmatic advertising? Give us a call at 888-499-6699 to chat with a Taaffeite strategist about our programmatic services. Or, if you’d like to learn more, just keep reading!

What is programmatic marketing?

Programmatic marketing is a smart strategy that uses automated systems to buy ad space instantly through real-time bidding. This means your ads can target specific users in precise contexts, making them highly targeted and very effective.

When people hear programmatic, they still tend to think of poorer-quality, lower-price inventory. As the people currently working with this technology, we all know that's changed, but that message hasn't bubbled out to everyone

How does programmatic marketing work?

Now that you know “what programmatic marketing” is, let's dive deeper into how it works.

When someone visits a webpage that's set up for programmatic advertising, a marketplace for programmatic marketing starts an auction. In this auction, companies bid to place their ads on that page. This process is also called an ad impression auction.

If the person visiting the page fits the profile of a company's target audience, that company joins the auction. Multiple advertisers apply for the ad space, but only one can claim it. The winner is the company that offers the highest bid, and their ad gets displayed on the page.

The key thing to understand is that this whole process is automated. Even though it might seem like it takes a few minutes, it actually happens incredibly quickly, in just milliseconds. The winner of the auction is decided before the page even loads for the user.

This happens because companies decide their highest bid in advance. They determine the amount they're willing to pay, just like their competitors do. When an ad space opens up, the system compares and calculates the bids from all qualifying businesses.

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When the page loads, the company's ad will show up. Even if only one person sees it, that impression is valuable. Plus, since the ad is likely relevant to the person's interests, there's a good chance they'll click on it.

While it might sound complicated, programmatic marketing is actually a quick and straightforward process that unfolds in milliseconds.

Here's a simplified breakdown of how it works:

  • Someone clicks on a webpage.
  • The owner of the webpage starts an auction to sell an advertising spot.
  • Advertisers compete in the marketplace auction for that spot.
  • The advertiser offering the highest bid wins the right to display their ads on the webpage.
  • The winning ad appears on the website.
  • Customers click on the ad and potentially make a purchase.

What is the future of programmatic marketing?

Programmatic marketing holds great promise for businesses of all sizes. Currently, companies are investing around $60 - $70 million every year in programmatic advertising, and this figure is steadily rising. This upward trend highlights the effectiveness and influence of programmatic marketing on advertising strategies.

If you're looking to boost your online advertising strategy, consider giving programmatic advertising a try.

You have the option to kickstart the process internally, but if you want to speed things up, consider partnering with a programmatic service provider such as Taaffeite. With our team of over 20 skilled ad specialists, we can assist you in crafting, launching, and overseeing your campaigns.

Begin your journey into programmatic marketing today!

Programmatic marketing offers tremendous potential for your business. To discover more about how you can leverage programmatic advertising, reach out to us online or give our programmatic advertising agency a call today at 888-499-6699 to chat with one of our strategists.

We're eager to assist you!