What is Programmatic Advertising? A Simple Breakdown

There are a few terms or phrases you may hear or read in the world of digital marketing that you don’t entirely understand, and “programmatic advertising” is a good example for many people. What is programmatic advertising, and why is it important for many brands?

At iNHouse Advertising, we’re here to offer a huge range of digital advertising agency services to clients around Tulsa, Oklahoma, including programmatic advertising, creative video production and so much more. Here are some basics on what programmatic advertising is, why it’s beneficial for many companies and brands in their advertising efforts, and some tips from our team on how to successfully manage programmatic advertising programs. 

What is Programmatic Advertising? 

For those who are new to the field, programmatic advertising – also called programmatic ad buying – is the use of software programs to automate the process of buying and selling digital media space. This means that instead of negotiating with publishers or ad networks directly, advertisers use technology to purchase ad space in real time through an automated bidding system.

Programmatic advertising typically uses metrics like traffic data and online display targeting to determine the value of ad space in real time, and then bids are placed on that space based on these metrics. This process happens continuously, which means that programmatic advertising is a highly efficient and effective way to reach target audiences.

Now, it’s important to know that programmatic advertising typically isn’t 100% automated. There will still be manual inputs that your organization has control over, such as overall budget, targeting parameters, and goals. However, the majority of the process is completed through automated technology.

Kinds of Programmatic Advertising

While this is not an exhaustive list and several sub-categories exist, here are some of the most well-known types of programmatic advertising:

• DSPs: Short for demand-side platforms, DSPs are a software platform that is used by media buyers to automate ad purchases. These platforms provide access to different types of inventories (websites, apps, etc.) and allow for targeting and bidding based on various parameters.

• SSPs: On the other side of the spectrum, supply-side platforms are built for publishers who want to automatically sell digital inventory. They connect with ad exchanges and manage the selling process for publishers.

• DMPs: Data management platforms gather user data from disparate sources such as websites or mobile applications and then analyze it in order to target specific audiences.

• Ad exchanges: These are the marketplaces where publishers can sell their inventory and buyers can bid on that inventory.

• Ad networks: Ad networks serve as intermediaries between publishers who want to sell ad space and advertisers looking to buy it. They bring together multiple sources of inventory and resell it to advertisers at a markup.

Benefits of Programmatic Advertising

One of the main benefits of programmatic advertising is its efficiency. With automation, there is less room for human error in the buying and selling process, which can save time and resources for companies. Additionally, programmatic advertising allows for more precise targeting based on specific demographics or behaviors, leading to a higher return on investment (ROI) for ad spending.

Another advantage is the ability to scale campaigns quickly and easily. With programmatic technology, advertisers can reach a larger audience across multiple platforms at a faster rate than with traditional methods.

Tips for Successfully Managing Programmatic Advertising

While programmatic advertising can offer many benefits for companies, it’s important to have a solid strategy in place to ensure success. Here are some tips from our team at iNHouse Advertising:

• Understand your target audience: Clearly defining your target audience is crucial for effective programmatic advertising. Know their interests, demographics, and online behaviors to create targeted campaigns.

• Set and monitor goals: From the beginning, establish measurable goals for your programmatic advertising campaigns. Continuously monitor and adjust them as needed to optimize performance.

• Utilize reporting and analytics: Take advantage of the data available through programmatic advertising to track performance, identify trends, and make informed decisions for future campaigns.

• Work with a trusted partner: Consider partnering with a digital marketing agency or consultant who specializes in programmatic advertising. They can provide expertise, resources, and guidance for successful campaign management.

• Maintain a “human touch:” As we noted above, programmatic advertising may be automated, but there is still a need for manual inputs and oversight. Be sure to review the performance of your campaigns regularly to ensure they align with your goals and target audience.

• Be diligent: With the rise of fake news and fraud in digital advertising, it’s important to be diligent in monitoring your programmatic campaigns for any suspicious activity. Fraudsters might use bots or other techniques to inflate their traffic numbers, so regularly reviewing and adjusting your targeting and bidding strategies can help mitigate this risk.

As you can see, programmatic advertising offers a wide range of benefits for companies looking to effectively reach their target audience through digital media. By understanding the basics, utilizing the right types of programmatic advertising, and implementing a solid strategy, businesses can see significant results and ROI from their ad spending. 

At iNHouse Advertising, we are constantly staying updated on the latest developments and best practices in programmatic advertising to better serve our clients. Contact us today to learn more about how our team can help elevate your digital marketing efforts through programmatic advertising, whether you’re in Tulsa or any nearby area of Oklahoma.