Complete Guide To Programmatic Advertising

Even the best ads may not perform well if they are not appropriately targeted and optimized. This has become even more important in the digital landscape where competitive online advertisements need fast-paced tweaks.

Through Programmatic Advertising, businesses can use software to buy and optimize digital spaces.

How does it work? 

Programmatic Advertising can help you optimize lengthy human negotiations with machine learning and AI optimization. You can also use traffic data to drive the right amount of impressions for your business which will maximize your ROI. Programmatic advertising is dynamic and can greatly benefit businesses of all sizes, be it small businesses or MNCs.

It’s a common misconception that ad-buying is entirely controlled by programmatic advertising. Tasks like preparing insertion tags and ad tags, which were once done manually, have been entirely replaced with the help of AI. This has given marketers the freedom to make better decisions about ad optimization.

Who uses it? 

Programmatic Advertising exists on several digital as well as offline platforms. Initially, programmatic campaigns required big budgets and were preferred by bigger businesses. But with the rise of self-service tools, smaller brands can access this technology to compete with larger companies without going through high-cost middlemen. Reach out to brand management agencies in Mumbai to completely revamp your online presence.

Traditional offline advertising is starting to get digitized too through digital screens on bus stations, shopping malls, and billboards.

Has it been successful? 

Programmatic Advertising has seen exponential growth with no signs of stopping. In India, it is estimated to grow by 70% every year. This rise is because it’s incredibly efficient. Traditional methods have often been archaic as well as expensive and hence using technology to optimize resource allocation has been very beneficial.

With AI and machine learning, you can monitor your ad spending systematically and formulate a long-term strategy according to real-time impressions.

Here are some common programmatic advertising terms

Real-time Bidding (RTB):
It’s the process of buying and selling ads through real-time bids. These transactions are made in a span of 100ms.

When a visitor clicks on a website, his data is matched against the available advertisers. After this, an auction takes place and the advertiser with the highest bid wins this digital space on the site. This system has optimized targeting for advertisers.

Ad Exchange
It’s where publishers meet advertisers and set the price to display their ads.

Usually, an ad purchase is made when someone clicks on a business’ website. These ad exchanges occur through real-time auctions. Ad Exchange acts like the middleman of this programmatic system between the advertiser and the publisher.

Demand-Side Platform:
It’s a tool used by advertisers to buy ad placements automatically. 

An advertiser signs up with a DSP which is connected to the ad exchange. If the visitor data matches the advertisement’s profile, the DSP engages in real-time bidding with other advertisers to compete for the digital space.

Supply-Side Platform
Publishers use this software to manage their digital space.

The SSP remains connected with the ad exchange. Information about the available digital space is relayed which is then auctioned off to the highest bidder.

If you want your online ads to stay competitive, programming advertisement is an essential tool in the marketing toolkit. Need some help? Leading media buying agencies like Chimp&zinc can help you get started!  

Author Bio: Hardik Kothari is a Copywriter at Chimp&z Inc. He likes to write words, read books, and talk about himself in 3rd person.