The digital advertising landscape is ever-changing and constantly adapting to new technologies. Programmatic advertising is a trending topic in digital marketing right now, and it isn’t hard to understand why. This type of advertising allows agencies to use data-driven insights to reach the most relevant customers. In this blog, we’ll dive into the basics and discuss what makes this type of advertising so useful and efficient.
What is programmatic advertising?
Programmatic advertising takes the ad buying process to the next level. Starts with two parties: advertisers who want to buy ad space, and website owners who have ad space to sell. The two parties go to computerized auctions ran by ad exchanges. Programmatic advertising uses algorithmic software that handles the sale and placement of digital ad impressions through these ad exchange platforms. It also incorporates traffic data and online targeting methods to serve impressions more accurately.
How does the ad buying process work?
Although there are quite a few steps in the process, it all happens in just a fraction of a second!
How much does programmatic advertising cost?
Programmatic advertising works on a CPM (Cost Per Thousand) or Cost Per Impression model. CPM is generally somewhere between $0.50 and $2. In comparison, CPM for social media networks can average as much as $6 or $7.
Programmatic advertising is a sophisticated process that offers incredible benefits to digital marketing agencies and their clients, such as:
- Maximizing budget — The most significant benefit is the ability to spend ad budgets effectively. With access to incredible amounts of data at their fingertips, brands can target a very specific set of users. This means they can eliminate waste on viewers who probably aren’t interested in their product.
- Instant Results — Programmatic advertising gives brands real-time results, allowing agencies to immediately optimize their ads.
- Transparency — With programmatic advertising, brands have full transparency over fees. This allows agencies to better guide their clients to optimize their budgets.
- Multi-format reach — Reach audiences over any device: desktop, mobile, or tablet.
This is considered an advanced form of online media buying that provides a seamless way for brands to reach their target audiences. While it may initially seem a bit complicated, the process actually pretty simple and is a rising trend in the advertising industry that can create new opportunities for companies to achieve their goals.