What Is Programmatic Advertising?<\/h2>\n
Programmatic advertising uses automated technology and algorithmic tools for media buying<\/a>. The term programmatic relates to the process of how ads are bought and sold in the advertising space.<\/p>\n Programmatic advertising differs from more traditional media buying methods in its use of automation.<\/p>\n It analyzes many user signals to ensure that ads serve the right person, in the right place, at the right time.<\/p>\n Think of programmatic as the umbrella in this category, where different types of programmatic buying are categorized beneath it.<\/p>\n It\u2019s easy to confuse display and programmatic ads, especially with the strides that Google has made in its automated and real-time bidding capabilities.<\/p>\n The largest difference between programmatic and display is:<\/p>\n The second biggest difference between display and programmatic is the ability to buy ads across platforms.<\/p>\n Display ads are more commonly referred to when placing ads within one specific ad network, such as the Google Display Network.<\/p>\n Programmatic advertising, on the other hand, takes display media to the next level.<\/p>\n Multiple platforms exist for programmatic, such as sell-side platforms (SSPs) and demand-side platforms (DSPs), allowing advertisers to buy ad inventory across an open network of platforms.<\/p>\n With both programmatic and display, advertisers typically have control over the following:<\/p>\n Automated technology has made significant strides throughout the years.<\/p>\n There are many types of programmatic platforms.<\/p>\n The three main types of platforms are:<\/p>\n To familiarize yourself with the different platform types, let\u2019s take a look at some of the major players in each category.<\/p>\n A comprehensive list of SSPs for publishers includes:<\/p>\n If you\u2019re looking for a video SSP, some of the leading companies include:<\/p>\n While there are many more available to publishers, these are companies you may have heard of but might not have associated with programmatic technology.<\/p>\n Similar to SSPs, these company names may ring a bell and offer DSPs.<\/p>\n Some of the top DSPs include:<\/p>\n Some of the larger DSPs for Connected TV and video include:<\/p>\n Again, there are many more DSPs available to advertisers. It\u2019s important to choose a DSP with the features and inventory you are looking for.<\/p>\n Some DSPs offer self-serve advertising, while others offer both self-serve and full-managed service (likely to larger advertisers or agencies).<\/p>\n Some of the more well-known ad exchangers available to publishers include:<\/p>\n Not all ad exchanges are equal.<\/p>\n It\u2019s important for publishers to research options carefully and choose platforms that align with their goals.<\/p>\n Simply put, programmatic advertising can cost as little or as much as your budget allows.<\/p>\n It\u2019s a common misconception that small businesses can\u2019t benefit from programmatic technologies \u2013 but we\u2019re here to correct that.<\/p>\n Programmatic ads are typically bought on a cost-per-thousand-impressions (CPM) basis.<\/p>\n CPMs typically range anywhere between $0.50-$2.00.<\/p>\n However, CPMs can be much higher based on factors such as:<\/p>\n A good rule of thumb for programmatic ad cost is: The more niche your audience, the higher CPM you will pay.<\/p>\n So, whether you\u2019re a multi-million dollar advertiser or a small business just getting started, you can likely fit programmatic into your advertising budget.<\/p>\n There are many benefits to incorporating programmatic advertising into your marketing strategy.<\/p>\n Some of the top benefits include:<\/p>\n Arguably the biggest benefit of programmatic advertising is the ability to grow and scale.<\/p>\n Programmatic is the best way to buy ad inventory to reach the masses due to the abundance of cross-platform inventory.<\/p>\n Related to the above benefit of scaling reach, programmatic is one of the most cost-effective types of advertising out there today.<\/p>\n Earlier, we discussed average CPMs for programmatic averaging between $0.50-$2.00.<\/p>\n Even with a small budget<\/a>, your marketing dollars can go pretty far to reach your target audience and increase awareness of your product or service.<\/p>\n Because programmatic platforms rely on real-time bidding, advertisers reap the benefit of receiving near real-time data.<\/p>\n Why does this matter?<\/p>\n Real-time data means you can make faster decisions and pivots. It also puts you in a proactive \u2013 instead of reactive \u2013 mode.<\/p>\n Another benefit of programmatic advertising is the type of data segments available to advertisers.<\/p>\n For example, advertisers can upload owned first-party data in a secure way and target those people directly, using real-time bidding signals.<\/p>\n Taking that a step further, DSPs have many third-party segments that advertisers can choose to target if they don\u2019t have first-party data.<\/p>\n Another type of third-party data advertisers can leverage is turning their first-party data into third-party data by creating lookalike audiences of their own customers.<\/p>\n This avenue opens the door to finding new customers similar to current ones.<\/p>\n It\u2019s important to note that programmatic advertising is typically seen as an awareness tactic<\/a>.<\/p>\n Because of this, companies that look solely at last-click success often overlook the true potential of programmatic advertising.<\/p>\n So, how does programmatic fit into a cross-device campaign?<\/p>\n The key is to capture that initial awareness to users through programmatic ads.<\/p>\n Likely, a user won\u2019t purchase a product or service after the first interaction with a brand.<\/p>\n Once a user\u2019s interest is peaked, you have the ability to remarket to them on other platforms based on their interaction or engagement with that initial ad.<\/p>\n Marrying that data together from the first interaction to eventual purchase is key to determining the success of your programmatic strategy.<\/p>\n There are different types of programmatic advertising.<\/p>\n These should not be confused with the programmatic platforms themselves.<\/p>\n The types of programmatic advertising are simply how an advertiser purchases ad inventory.<\/p>\n The four most common types are:<\/p>\n Programmatic ads come in all shapes and sizes.<\/p>\n The beauty of using programmatic ads is tailoring the content to your chosen target audience.<\/p>\n A few well-executed programmatic campaigns include:<\/p>\n The Amanda Foundation is a non-profit animal hospital and shelter rescue in the Los Angeles area.<\/p>\n It created a campaign to help at-risk shelter animals find a home during their final days.<\/p>\n Specifically, it leveraged programmatic signals like location, demographics, and browsing behavior to tailor specific animal images to its audience.<\/p>\n If a user was interested in large dogs, they would be served a banner ad with large dogs instead of smaller dogs.<\/p>\n As you can see, messages and images were tailored to the individual\u2019s behavior and interests<\/a>.<\/p>\n You\u2019ve most likely seen or heard some version of a Geico ad.<\/p>\n Have you ever thought about the different ads Geico targets for you, though?<\/p>\n Geico uses such ad formats as TV commercials, website banner ads, social media ads, and more, to create a true cross-platform awareness campaign.<\/p>\n The brand carefully chooses its content based on the platform it serves on, the target audience and demographics, and more.<\/p>\n Its commercials are so popular, in fact, that Geico has dedicated a resource page<\/a> on its website where users can view their favorite commercials.<\/p>\n The basics and benefits of programmatic advertising can help guide your existing programmatic strategy, or if you\u2019re just getting started, create a new strategy that incorporates programmatic.<\/p>\n Understanding the functionality and features of each platform will be a critical component of your programmatic success.<\/p>\n More resources: <\/strong><\/p>\n Featured Image: ArtemisDiana\/Shutterstock<\/em><\/p>\n<\/div>\nWhat\u2019s The Difference Between Programmatic And Display Ads?<\/h2>\n
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Programmatic Advertising Platforms<\/h2>\n
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Sell-Side Platforms<\/h3>\n
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Demand-Side Platforms<\/h3>\n
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Ad Exchangers<\/h3>\n
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How Much Does Programmatic Advertising Cost?<\/h2>\n
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What Are The Benefits Of Programmatic Advertising?<\/h2>\n
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Large-Scale Audience Reach<\/h3>\n
Efficient And Low-Cost Awareness<\/h3>\n
Real-Time Data And Analysis<\/h3>\n
Utilizing First And Third-Party Data<\/h3>\n
Cross-Device Campaign Strategy<\/h3>\n
Types Of Programmatic Advertising<\/h2>\n
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Programmatic Advertising Examples<\/h2>\n
Amanda Foundation<\/h3>\n
![\"tailored](\"https:\/\/marketingnewsbox.com\/wp-content\/uploads\/2022\/09\/what-is-programmatic-advertising-how-does-it-work-via-sejournal-brookeosmundson.png\")
Image from Amanda Foundation, August 2022<\/em><\/span><\/div>\nGeico Insurance<\/h3>\n
Conclusion<\/h2>\n
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