Modern businesses strive to find the most effective tools to promote their products and services. Programmatic advertising has become one of the key solutions that allow you to automate the purchase of advertising space, minimize costs, and increase the effectiveness of marketing campaigns. Thanks to the use of artificial intelligence and machine learning algorithms, programmatic provides precise targeting, a personalized approach, and budget optimization in real-time. In this article, we will analyze why programmatic advertising is not just a trend, but a profitable marketing tool that helps businesses achieve their goals faster and more efficiently. In the blog at https://smartyads.com/ you can learn more about this great solution.
What is Advertising?
Advertising is one of the marketing tools and a business process aimed at:
- attracting attention;
- stimulating interest;
among potential consumers, in order to promote:
- products (goods);
- services;
- ideas;
- brands.
Advertising is used by businesses to:
- increase the recognition of manufactured and sold goods or services;
- attract new customers;
- retain existing customers;
- increase sales.
Depending on the distribution channels used (the means through which advertising messages reach the target audience), the following types of advertising are currently distinguished:
- Television advertising.
- Radio advertising.
- Print advertising.
- Internet advertising.
- Mobile advertising.
- Outdoor advertising.
- Cinema advertising.
- Mailing advertising.
As a rule, businesses use several advertising channels to achieve their marketing goals and attract the attention of the target audience.
What is Online Advertising?
Online advertising is a form of advertising that uses the Internet to interact with the target audience. It allows advertisers to place advertising messages or offers on websites, search engines, news resources, social networks, video hosting sites, message boards, mobile applications, email, and other digital platforms. Online advertising has a number of important features:
- Online presence. It works on digital platforms and websites that are accessible via the Internet.
- Targeting. Online advertising provides tools that allow you to target your target audience more accurately. Using data on user behavior and interests, as well as demographic information, you can create more personalized and relevant advertising messages.
- Interactivity. Online advertising usually offers the opportunity to interact with it, for example, clicks to the site, the presence of forms to fill out, surveys, comments, likes, shares, etc.
- Variety of formats. Online advertising offers a wide range of advertising formats, such as banners, text advertising, contextual advertising, video advertising, social media advertising, affiliate advertising, email advertising, and others. This allows you to choose the most appropriate format for a specific advertising campaign.
- Metrics and analytics. Digital advertising is measurable. Any user actions related to interaction with advertising and the advertised site can be measured using web analytics tools and evaluate the effectiveness, such as the number of views, clicks, conversions, bounce rate, number of calls, number of orders or purchases, cost of attracting a customer, etc.
Types of Internet Advertising
Internet advertising is an integral part of marketing communications for almost any business. With the development of digital technologies, many types of Internet advertising have emerged, offering a wide range of tools for interacting with the target audience, each with its own characteristics. The most common types of Internet advertising are listed below:
- Contextual ads.
- Targeted ads.
- Advertising on social networks (SMM).
- Search engine optimization (SEO).
- Video ads.
- Email-marketing.
- Native ads.
- Retargeting.
- Content marketing.
- Sales on trading platforms and marketplaces.
- Sales on message boards.
- Paid inclusions in catalogs.
- Podcasts ads.
- Mobile ads.
- Banner ads.
- Programmatic advertising
What is Programmatic Advertising?
Programmatic purchasing is a whole system of methods that makes automated (without human intervention) purchases of online advertising. Programmatic advertising finds the desired target audience based on socio-demographic and behavioral data about users, receiving information from platforms, the advertiser itself, and data sellers.
It is based on the DSP (Demand Side Platform) platform – an automated system for purchasing a user that matches the advertiser’s request. The purchase itself occurs automatically according to the auction model in real time (RTB).
On the seller’s side, there is an SSP (Sell Side Platform), aggregating offers from platforms, and setting a minimum price at which the platform is ready to show an advertisement.
In fact, the DSP on the buyer’s side and the SSP on the seller’s side trade for the user.
When a user visits a site, impressions on which are sold in the RTB ecosystem, bidding for him begins. Various DSPs form bids and an auction takes place among advertisers, as a result of which the winning ad is shown to the user. This entire process takes a few milliseconds.
To identify users as accurately as possible, digital analytics are used – data from the advertisers themselves and DMP (Data Management Platform). DMP is a provider of user profiles that can manage and form audience segments using raw data from data providers.
Programmatic advertising has fundamentally changed the approach to buying advertising on the Internet, with its appearance there is no longer any need to buy all the expensive traffic of a specific portal. Instead, it became possible to buy the desired target audience. Such a purchase significantly optimizes the cost of key indicators CPC (Cost per Click) and CPA (Cost per Action).
Among the advantages of programmatic advertising:
- display in the largest banner networks with high-quality traffic;
- huge speed of work: DSP allows agencies and advertisers to make deals in real time;
- work with a wide range of formats: banners, video
- impressions at a minimum price;
- no need to book placement in advance, as on many popular portals;
- no need for media planning and choosing sites for placement using expensive and difficult-to-use software;
- the ability to launch retargeting for site visitors;
- narrower targeting is available than visitors to a particular site;
- real-time statistics: a report on the progress of the campaign is reflected with a delay of only a few seconds, which allows you to quickly reduce costs on ineffective traffic sources
Wrapping It Up
Programmatic advertising opens up new opportunities for growth and scaling for marketers and companies. Automation, intelligent data analysis, and personalization of advertising campaigns make this tool one of the most cost-effective in modern marketing. By implementing programmatic, brands gain a competitive advantage by reducing costs and increasing conversion. If you are looking for a reliable programmatic advertising service provider, we recommend paying attention to SmartyAds.
