Programmatic advertising takes the time and energy-consuming steps of traditional ad buying and automates them so that marketers can achieve results faster. The process happens in milliseconds and involves an auction of available inventory across different platforms and channels. To make this happen, an advertiser signs up with a demand-side platform (DSP) that is connected to an ad exchange. When a user visits a website with an open ad space, the DSP sends a signal to the ad exchange asking it if the advertiser has ads that match the site visitor’s interests. If the DSP can deliver an ad, it wins the auction and the ad is displayed on the page.
The beauty of this type of advertising is that it can reach specific audiences in real-time, on any device and channel. This allows you to connect with your target audience more effectively, ensuring that your message is seen and heard by the right people. It can also help you stay top of mind with consumers in the midst of their purchase journey. This can be especially effective for automotive companies, which face a longer sales cycle than many other industries.
When you’re considering programmatic advertising, the first thing to understand is that not all ad platforms are created equal. You need to choose a DSP that is compatible with your business goals and budget. This will ensure that you can use the best available technology to maximize your campaigns and achieve your business goals.
As the market for programmatic advertising continues to grow, more and more businesses are choosing this form of marketing to help them reach their audience in a more effective way. It’s not a new tactic, but it’s become increasingly popular as technology improves and advertisers demand more relevant content.
Here are some of the key benefits to using programmatic advertising:
Automated Ad Buying
When you use programmatic advertising, an algorithm analyzes your campaign and determines the best bid and placement for your ad. This helps you avoid clicks and impressions that are not likely to result in a conversion and saves you money by eliminating unnecessary spending.
In addition, the algorithms can analyze your campaign and predict what will perform well and where you need to focus your efforts. This can help you avoid spending money on ads that will not produce a good return on investment and ensures your ads are shown in the best possible locations, maximizing your ad spend.
Another benefit of using programmatic advertising is that it can help you identify and address issues before they escalate into larger problems. For example, the algorithms can help you spot and address fraud, which is a growing problem in the digital advertising world. By identifying fraudulent activity in real-time, you can stop it before it eats into your budget and negatively impacts your campaigns. This can save you a lot of money in the long run, making it an essential tool for your small business.