Programmatic Advertising for Beginners

September 28, 2022

By Neil Patel

I’m going to go ahead and say it: programmatic advertising is the future. Although it’s a relatively new concept compared with other forms of marketing, spending on programmatic advertising is growing yearly.

Omnichannel marketing, audio and in-game advertising, voice-activated advertising, and 5G are just some of the factors fueling its growth, and they’re going to take programmatic advertising into 2023 and beyond.

Now, enough about the future. What if you’re not so familiar with this type of marketing? How does programmatic advertising work? How are others using it? More importantly, is it right for your business?

In this article, I discuss all of that and more, starting with the basics.

What Is Programmatic Advertising?

Programmatic advertising is the automated buying and selling of digital advertising space over the internet.

Here’s how it works.

Two main platforms are involved: a supply-side platform and a demand-side platform.

By using programmatic technology, ad space gets bought and sold in real-time through automated auctions on a demand-side platform (DSP). This process happens instantaneously, with the winning ad displayed on the publisher’s website or app. This means that ads can be bought and sold more efficiently and at a lower cost.

When targeting ads, marketers first identify their target audience and then set parameters, such as geographic location, age, gender, interests, etc. They also specify how much they want to pay for each ad view or click.

If you’d like a deeper dive into this topic, here’s a detailed article on programmatic buying for PPC.

A supply-side platform (SSP) is an automated platform that enables the sale of ad space to businesses.

It is hugely popular, with top brands like Lacoste, Aldi, and Turner Sports using it, and global programmatic advertising spend is set to exceed $700 billion a year by 2026.

What Makes It Successful?

Why the growing popularity?

Aside from the ease of automation, programmatic advertising allows for better targeting of specific audiences. The golden rule with this type of marketing is it only does well if you target the right prospects with your ads.

Programmatic advertising relies on data, meaning marketers can direct their ads to people based on their interests, location, internet searches, or even what they’ve bought before. All this makes the ads more relevant to the individual, and likely results in more clicks and conversions.

For instance, if you’re selling health foods in California, you’d want to target fitness enthusiasts in the area.

Publishers also benefit from programmatic advertising because it allows them to sell ad space more efficiently. They can target specific buyers interested in their content and sell ad space on an impression-by-impression basis.

Second, programmatic advertising is efficient and effective. For many marketers, programmatic advertising is an ideal hands-off approach to buying ads; it allows advertisers to buy ad space in real-time, which means they can get their ads in front of the right people quickly and …read more

Source:: Kiss Metrics Blog

      

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