The results you get from digital marketing are incomparable against traditional marketing strategies.

Overall, businesses can get more bang for their buck as online advertising offers more options, lower costs, and versatility than traditional media advertising.

A challenge commonly encountered by businesses is how to choose the right ad platform for their business. It can seem daunting, with all the technical aspects to consider. However, getting the help of expert digital marketing agencies, like Measure Marketing, can make the process convenient and worthwhile.

Programmatic advertising may be the key to your digital marketing needs.

Programmatic Advertising Explained

Programmatic advertising uses AI or artificial intelligence in real-time bidding to help automate and streamline the ad-buying process. Instead of buying directly from publishers, programmatic ads automatically accept and optimize digital campaigns without the need for human negotiations.

Programmatic campaigns allow business owners to specify a target market, budget, and goals for a campaign. This information is then configured through AI to place ads across dozens of advertising networks to reach your exact target audience.

A simple programmatic advertising example could be how a company that sells hiking gear can use this program. Programmatic ads allow you to target hiking enthusiasts from specific states or areas in your country. You can also choose specified marketing goals for your campaign, like increasing online traffic and conversions.

Programmatic marketing will take all of this information and analyze it against various data points. This is to determine the right ad platforms and bids to satisfy your marketing objectives. An example is dedicating a percentage of your budget to mobile app marketing to reach your exact niche at a particular time of day.

According to the co-founder of The Exchange Lab, Tim Webster, programmatic ads’ effectiveness is indisputable. He adds:

“The beauty of programmatic advertising is that it provides unprecedented access and insight into consumer data and behavior, which to date has not been possible with traditional media.”

It is becoming more apparent how programmatic advertising provides brands’ potential to thrive in the digital age.

Types of Programmatic Advertising

1. Real-Time Bidding (RTB)

RTB or real-time bidding refers to the real-time buying and selling of ads in an instant auction on a per-impression basis. It is typically done by an SSP or supply-side platform or ad exchange. Advertisers with the highest bids can choose ad slots as they are made available.

This type is also known as an open auction.

2. Private Marketplace (PMP)

Also known as a private auction, PMP or private marketplace is a lot like RTB as ad space is sold through bidding. However, web publishers select buyers on an invite-only basis. At the same time, publishers also reserve premium ad inventory for chosen advertisers.

These are great for advertisers as they are aware of which websites they are buying ads on. This enables them to measure their ads’ ROI.

3. Preferred Deals

Preferred deals are when advertisers get to choose specific ad inventory at a fixed rate. Also known as unreserved fix rates, these are made available before private marketplaces and open auctions.

One benefit from preferred deals is that both the publisher and advertiser agree on pricing, targeting, and the like with someone they trust. The advertiser also gets to have an idea of the publisher’s ad inventory before making a definite purchase. This allows advertisers to check if the ad inventory available will fit their business needs before purchasing.

4. Programmatic Guaranteed

Also known as an automated guarantee or programmatic direct, programmatic guaranteed is similar to traditional media buying. The publisher and advertiser determine the terms, much like an in-person sale.

The publisher reserves a spot for the ad server for a specific campaign duration when a fixed price is agreed upon instead of going through a bidding process.

This is often used by advertisers who have better marketing budgets and know exactly where they want to place their ads.

Programmatic Display Advertising Platforms

Programmatic platforms are where advertisers and marketing agencies can automate specific steps to create a successful digital ad campaign. This can include campaign optimization, ad placement, performance tracking, and the like. Each one fulfills functions for marketing, analytics, and operations.

Let’s look at the different platforms available:

Supply Side Platform (SSP)

SSPs allow publishers to make their ad inventory available for programmatic demands. This is all done on Ad Exchange. The SSP displays the contents available for purchase on an ad exchange. This is then auctioned off and given to the advertiser with the highest bid.

Here are some of the popular SSP systems available today:

  • SmartyAds
  • AppNexus
  • DoubleClick

Demand-Side Platform (DSP)

DSP or demand-side platform is a tool that enables advertisers to buy ad placements automatically. This process occurs through algorithms and quick-learning technology. These help advertisers find the perfect arrangement for their ads.

While publishers register on SSPs, advertisers use DSPs. When a user comes into a DSP system, auction signals are sent to the ad exchange. DSP determines if the advertiser has ads that may be targeted to a specific user. Relevant ads are then entered into an auction wherein the highest bidder will have their ad displayed to the visitor.

Top DSP systems in the market:

  • MediaMath
  • Adform
  • The Trade Desk
  • DV 360 (Google)
  • Adobe Advertising Cloud
  • AppNexus
  • BidTheatre

Data Management Platform (DMP)

Data management platform, or DMP, is a tool that collects, stores, and sorts information. Typically, publishers and advertisers combine their SSP or DSP of choice with DMP, which needs both platforms to support it.

DMP has stored data on demographics, current interests, and buying motivations. These data are then used within a programmatic algorithm that looks for the best ads to show a converting user.

It is good to note that both DSP and DMP need to work hand in hand to succeed. If not for DSP, DMP is sort of like a file cabinet with data and information. It requires a DSP to handle the actual buying of ad space. In turn, DSP won’t have the necessary information on where to buy ad space without DMP.

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Using Artificial Intelligence in Programmatic Advertising

Machine learning AI algorithms are capable of learning from patterns and adjusting actions based on that. This is the ideal formula for programmatic definition. AI can process a wide range of data efficiently, which can influence various elements of programmatic marketing such as:

  • Personalization
  • Content Matching
  • Budgeting
  • Predictive Analytics

Brands use all these to provide more relevant and targeted messages in the right place and at the right time. Through data-driven insights, clients can reach their users and viewers more efficiently.

Through intent-based ads brought by AI analytics, companies can use their ad campaigns to their maximum potential to increase traffic and conversions on their web pages.

Choosing the Right Digital Marketing Agency

Measure Marketing is a leading digital marketing agency that creates touchpoint experiences through programmatic advertising. We have partnerships with high-end ad software that can help get programmatic ads that meet your business objectives.

Our team of experts help boost and optimize your marketing budgets through programmatic ads on Google and other avenues. This process allows us to create the best marketing strategies that lead to better ROI for your business.

Learn more about our programmatic ads company and how we can help lead you to the future of digital marketing!

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