The time when personal advertising space was sold is long gone, at least in online marketing. Billboards and street advertising that are widely spread and rarely hit their target have no longer had a chance against display advertising for a long time.
Your advertising success with programmatic advertising is a targeted application and a price that is not higher than it has to be. Why this is so and what programmatic advertising is, you can expect here:
This Is How Programmatic Advertising Works
If you visit a website and have repeatedly accepted cookies over the past few years, you will most likely see an advertisement tailored to your needs. Because the advertising content is not only based on the subject matter of the website but also your user data.
Which advertisements users see on the website depends on their demographic data, i.e. age, gender, location or online buying behaviour and also takes into account, for example, whether they have already visited the website in question.
The actual sale of advertisements now often takes place via Real-Time Bidding (RTB). This process uses an automatically controlled auction process that controls the buying and selling of advertisements.
However, the actual trade in the advertisements takes place on the Ad Exchange. So when a user visits a corresponding website, an advertising space with the corresponding demographic data is offered at that moment.
Advertisers place bids for the ads they want to show for specific target groups, which defines the maximum per ad. Now an auction takes place in a fraction of a second by comparing the bids on this ad, and the highest bid wins. However, the highest bidder only pays one cent more than the second-highest bid. This trade takes place in a fraction of a second.
In addition to real-time bidding, you can also rely on other transaction models such as the Automated Guaranteed. With this method, fixed advertising space can be booked at a predefined fixed price. As an advertiser, you define specific parameters for which your advertising is displayed.
Also Read: What Are The Types Of LinkedIn Advertising And How It Works
Five Benefits Of Programmatic Advertising
These five advantages programmatic advertising offers you:
1. Automated Process
Thanks to programmatic advertising, you do not have to enter into manual bookings or price negotiations to place online advertising. With the help of various algorithms, the process from purchasing the advertising space to displaying the advertising runs automatically.
2. Accurate Targeting
One of the most significant advantages of programmatic advertising is that it is addressed in a way that is as appropriate to the target group as possible, which results in better targeting. This means that you don’t spend any money on people who are not even remotely interested in your website.
3. Greater Flexibility
You get more flexibility when planning your campaigns. For example, you have the option of changing and optimizing your campaign goals in real-time.
4. More Efficiency
Thanks to the targeted approach to potential customers, the chance of making a purchase increases. Resources such as the advertising budget can therefore be used more efficiently.
5. Worldwide Reach
Since programmatic advertising can be handled across national and international networks or channels, companies can address their potential customers worldwide in a targeted manner.
The advertising world is spinning faster, and Programmatic Advertising is doing its part. The benefits of this are obvious and, at the same time, the future of ad management, if not the present.
Also Read: The Different Forms Of Online Advertising And Their Advantages