Programmatic advertising is the placement of display ads in front of a specific audience through various channels, based on the use of programmatic means. Automating impressions to generate targeted leads is part of what makes programmatic advertising effective at generating leads. This article is devoted to the features of programmatic advertising and will be useful to those who want to promote their business and those who are interested in programmatic development.

Benefits And Risks Associated With Programmatic Advertising

Programmatic advertising is a type of digital marketing that uses algorithmic means to deliver ads to a specific audience. Programmatic advertising has its pros, cons, and risks.

The benefits of programmatic advertising include:

• Users only pay for real impressions.
• The advertising network will be directly accessible.
• Deep targeting can be customized at your discretion.
• The betting system is quite flexible.
• The advertising network represents many web resources of sellers.
• One advertising campaign makes it possible to purchase places not on one, but on two or three sites.

Among the disadvantages of programmatic advertising:

• It is necessary to have a ready-made portrait of target users. The fact is that not all businessmen perfectly understand to whom they have the opportunity to sell their products or provide services. An excellent result can only be achieved when testing is carried out several times. Another disadvantage is that not every service from programmatic is available to small businesses and small agencies.
• When working with programmatic advertising, you should also consider the risks. For example, one of them is “click-fraud”. The programmatic program includes measures to counteract click fraud, but budget clicking should not be ruled out. Another risk is associated with bad websites. These are situations when the system places advertisements on sites where it is undesirable to do so since they are visited by the target audience. It is also possible that the numbers in the statistics do not match.

How Does Programmatic Advertising Work?

The programmatic ecosystem is complex, with each component assigned a specific activity. In particular, Ad Networks help count impressions and clicks. On the exchange, bids from advertising owners are accepted and impressions are issued. DSP organizes the auctions directly. SSP negotiates with her. This is a platform where publishers provide advertising space for brands from a DSP platform. A tool called Trading Desk helps the advertiser in managing trading operations. This add-on is specific to the DSP platform.

How Does Programmatic Advertising Launch?

First of all, a strategy is worked out and the basis is prepared for subsequent experiments. First, it is recommended to define the objectives for the campaign that it must solve. It doesn’t matter what action will be the first - pumping up knowledge about a brand, attracting new target users, or direct sales with programmatic advertising - the starting action should be a deep analysis of the activities of the target audience, dividing them into segments and an initial determination of what they need most. This approach will make it possible to fine-tune the target and make advertising that would attract the attention of the target audience.

Next, users select the platform on which they plan to purchase advertising space. It is worth paying attention to the resources that are in the advertising network database, looking at how many such sites are, whether they are of high quality, and what coverage they have.

Users need to pay attention to the settings: learn about guarantees for advertising impressions, methods for selecting seller sites; targeting accuracy, and cost of impressions. It is important to know whether the advertising analytics offered by the system itself are one hundred percent detailed.

Types of programmatic advertising:

• video
• banner
• native ads

How Programmatic Advertising Differs From Contextual Advertising

While programmatic advertising has minimal similarities with SMM, it has some common features with contextual advertising. In both cases, ads are shown on other sites using an automated ad purchasing system. The main difference is the keys. What is important for context? Precise demand is expressed through user keyword queries in Google. If, for example, you type “H&M jeans” or “vacuum cleaner” into Google once, then these words will appear before the user’s eyes for a month, if not more. This is what they call contextual advertising.

The work of programmatic advertising is more subtle and delicate. It comes into play when demand is just emerging. That is, not when the user had a desire to purchase H&M jeans, but when just an interest in stylish jeans appeared. Jeans will be offered not taking into account a specific request in a search engine but as a conclusion from income, gender, and interests. Accordingly, jeans for women or men may appear from different manufacturers and for any season.

Who is Programmatic Advertising Suitable For?

The automation capabilities provided by programmatic tools look attractive, but here, like any other advertising tool, there are some peculiarities:

1. Data accuracy. The predicted coverage may be less than the actual one due to different methods of identifying users on the selected sites. Simply put, the visitor may not be identified as eligible for the ad to be shown to you. Also, “dead cookies” (primary identifier) ​​may be included in the predicted coverage.
2. The main purpose of advertising. Programmatic can be successfully used for retargeting, but it is not always suitable for those who primarily care about clicks to the site. This is related to the next point.
3. Price. Since payment is made for impressions, and not for clicks or actions, the cost of attracting a target visitor may be higher than in contextual advertising. However, the cost of impressions may be lower than that of a regular campaign on the media network. Much depends on the campaign settings and the specifics of demand.

This is not to say that programmatic advertising is suitable for absolutely everyone and will definitely increase conversion. For example, such a system is unlikely to be needed by companies providing urgent services in their region. But if outreach or remarketing through your sales funnel is important, it's worth a try.

Wrapping It Up

With the advent of new programmatic solutions, advertising began to develop more actively. New advertising platforms and networks entered the market with their own inventory, and advertisers and agencies now have the opportunity to buy impressions for specific audiences. Programmatic developers conduct a complex process that involves working through several components, and if you want to dive into the programmatic advertising niche, it is best to choose a white label solution, for example, from TeqBlaze. The company offers high-quality white label programmatic solutions that will allow you to enter the market in the shortest possible time.

Frequently Asked Questions:

What is programmatic advertising?

Programmatic advertising is a type of digital marketing that uses algorithmic means to deliver ads to a specific audience through automated processes. It involves real-time bidding for ad space to ensure targeted and efficient ad placements.

What are the benefits of programmatic advertising?

The benefits include paying only for real impressions, access to a vast advertising network, deep and customizable targeting, flexible bidding systems, and the ability to run a single campaign across multiple sites.

What are the risks associated with programmatic advertising?

Risks include click-fraud, the potential for ads to appear on undesirable websites, and discrepancies in statistical reporting. Despite measures to counteract these issues, budget misuse and placement errors can occur.

How does programmatic advertising differ from contextual advertising?

While both use automated systems for ad placement, contextual advertising relies on user keyword queries, whereas programmatic advertising uses broader data such as user behavior, income, and interests to predict and meet emerging demand.

Who is programmatic advertising suitable for?

Programmatic advertising is ideal for businesses focusing on outreach and remarketing through their sales funnel. It may not be suitable for companies offering urgent regional services but is beneficial for those seeking targeted audience engagement and brand awareness.