Programmatic media is an automated system that allows brands to deliver the right message to the right audience at the right time. The future of programmatic ads is inspiring and will continue to grow even more.
We’ve even seen growth in demand for programmatic ads in the face of tough economic times. This is because more and more e-commerce businesses depend on this technology to drive sales and remain competitive.
Before you start considering the terminology that applies to programmatic advertising, it’s essential to know what this method is and understand its characteristics.
Real-Time Bidding (RTB)
RTB (real-time bidding) is an auction platform where multiple bids in real-time from different advertisers define inventory prices. Because only competing ads are visible, RTB may provide an optimized cost-per-action (CPA) rate. It can maximize the value of each impression across different user segments and demographic parameters.
Real-time bidding enables advertisers to respond to the demand of any audience ever created instantly. As the market decides what ads are to be shown, publishers can gain a competitive edge. And advertisers can get their products before prospects without paying for wasted impressions.
Publishers have a plethora of information at their fingertips. It gives them a real-time overview of how people interact with their content differently.
Private Marketplace (PMP)
These are like Open Auctions, but PMPs have restrictions on participating. Invited advertisers only play in PMPs on an invitation-only basis. However, some cases may also contain a selection process that allows advertisers to apply for an invite from publishers.
While this may look like a more expensive option to run your ad campaigns. But it’ll ensure that your ads reach people in a metric space.
Salespeople can help push products and establish your name in the marketplace. But PMPs can lower these costs because they offer convenience and control directly within your business operations, more quickly if you rely solely on technology such as e-commerce.
This is the same as direct deals and does not use an auction mechanism but rather a fixed-priced CPM to reach niche audiences.
These deals can cost you more, but programmatically buying is as much as 30% more efficient than traditional negotiations.
In programmatic direct, publishers have a greater ability to gauge who is watching their ads based on the selectivity and timeliness of that inventory. Over time, they develop a greater level of knowledge about those people. It allows for better ad targeting and, ultimately, higher ROI.
Programmatic media buying for brands
Programmatic technology allows getting a more accurate picture of audiences who are likely to buy your product and helps you tweak ads dynamically in real-time. This means your valuable ad dollars aren’t wasted when you’re trying to reach people unlikely to engage with your brand or purchase from you.
Furthermore, it is key to effectively implement a campaign while still seeing how they perform compared to ads in other locations and functions. Brands can quickly streamline their campaigns by making changes based on the performance of these placements over others that were more expensive or less effective.
Ad exchangesÂ enable advertisers to easily buy ads across multiple sites at once instead of negotiating buys directly with individual publishers. ManyÂ ad networksÂ sell inventory on a large scale by collecting it across different publishers and marking it up before selling it.
In today’s rapid consumer marketplace, brands must ensure no wastage from the budget. They need to figure out where the money is going and how much their next campaign is worth.
Programmatic advertising gives your brand the freedom to adjust your message at will. It is automated, so you don’t have to wait around for people to sort through things and make adjustments. Success with programmatic advertising doesn’t just take analytics and cookiesâ€”they’re not accurate enough. Brands need surveys that track real people and ask them what they think about ads on their specific devices and how it affects their online purchases.