how do programmatic advertising platforms work

Programmatic advertising platforms: New ways of advertising

Marketing has changed drastically within the last decade. Global Wizards tells you how programmatic advertising platforms work and their benefits.

It is no secret that marketing has changed drastically within the last decade. The way in which people sell their products and services, as well as how they advertise them to potential customers, have all been affected by technology. Nowadays it seems like everything can be done programmatically – or automatically– without a need for humans at any stage of the process. Programmatic advertising platforms seem to be the future of marketing.

When people speak of Programmatic Marketing, they are referring to the nature of using automation or software for buying, selling and placing advertisements.

What is programmatic advertising?

Also called “Programmatic Marketing” this term is related to the automation of advertising using special software.

It’s a growing trend in today’s market, with many new businesses looking to get ahead by adopting this strategy and eliminating manual labor from their budget altogether.

How does programmatic marketing work?

Programmatic marketing is an intricate and exciting way to make a hyper-personalized brand experience for your customers. Once you have all of the data, algorithms can be used to pinpoint exactly who are your best prospects so that they get more relevant content from you than any other company in their market space could offer them.

Artificial intelligence technologies have algorithms that analyze a visitor’s behavior to tailor real-time campaigns specifically for the likely converters. This provides an edge over other methods such as traditional marketing where it is difficult to get feedback from customers and target specific audiences. Programmatic companies can use this data collected through artificial intelligence technology so they are able to gain insight into their market, develop more relevant messages, make better decisions on pricing points, and direct advertising towards consumers most receptive to its messaging.

Programmatic advertising platforms deal with online bids
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Programmatic marketing involves 3 main agents: A website visitor, the owner of that website and advertisers.

The process starts when a person clicks on a webpage that works with programmatic advertising platforms. The website publisher offers that spot in an SSP or Supply Side Platform and then an auction is started in a Demand Side Platform (DSP) where advertisers offer bids for the ad impression. As in every auction, the highest bidder wins and the ad is served on the website. The user finishes the process by clicking on the ad and converts.

The entire process happens in milliseconds and users don’t even notice it.

Some advantages of programmatic advertising

Programmatic marketing is changing the way advertising and promotions are done. This process opens up a series of opportunities to do more because ads can be placed automatically, which was not as feasible in the past due to human limitations with manual placement.

The sheer number of opportunities that are available with programmatic marketing makes it the most effective and efficient way to advertise. Here are 5 reasons why you need programmatic marketing:

  • Increased Audience Reach

Programmatic advertising allows you to reach a much larger audience across multiple websites and online platforms.

  • Cost-Effective

By using real-time data, advertisers can make adjustments and optimizations to their campaigns as needed. Optimizing ensures that each campaign is running efficiently by targeting only those ideal customers while using the budget effectively.

  • More control

Programmatic ads offer a layer of transparency that allows marketers to see all aspects of their ad in real-time- including sites it’s reaching, types of customers seeing them and associated costs per space!

  • Real-time measurement

Programmatic exchanges allow advertisers and publishers to check up on the performance of their ads, so they can modify them with ease. Ads are placed in real-time data at a quick pace, obtaining more accurate reporting.

  • Third-party data

By mining user data to filter out the preferences that do not align with what a person is looking for, it becomes easier to craft unique interactions tailored specifically towards their needs.

Why programmatic marketing is considered to be the future of digital marketing?

According to Phil Gaughran, U.S chief integration officer at agency McGarryBowen, by 2022 80% of the advertising process will be automated.

We will probably experience programmatic marketing in the TV and radio and it will definitely make an impact in AR (Augmented Reality) and VR (Virtual Reality) spaces where brands will have limitless opportunities.

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A few final words

Marketing continues to grow and evolve and therefore the world will experience new ways of advertising. Little by little, traditional marketing is being left behind due to the perks of using programmatic marketing.

Global Wizards is constantly keeping track of the latest tendencies in the world of marketing. If you want to have further information about programmatic advertising, contact us.

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