Since its inception in the early 18th century, advertising has come a long way and has witnessed drastic changes. Today advertisement is focused on expanding market reach only to the relevant audience that has high potential to be converted into customers.
Advertisement is no longer limited to print media instead it has gone digital. New terms and concepts like PPC, SEO and many more have been formulated in recent years. These strategies have enjoyed huge success in today’s digital markets. As a further advancement, automation has been integrated with advertising. This has led to the birth of programmatic advertising. Programmatic advertising integrates automation to develop a cost-effective and highly efficient marketplace. You might wonder how programmatic services can help your business so let us first discuss the advent of programmatic advertising and then we will see how it benefits your business.
What is Programmatic advertising?
Programmatic advertising is the automated process of buying and selling advertising spaces. Simply put, a computer system chooses the advertising space and then decides the price of the space to be bought or sold based on the data the computer system has received.
The system also decides the priority of the ads and ranks them accordingly. It then traverses through this ranked list of ads using data to decide which ads to buy. Sometimes this transaction takes place in real-time.
Programmatic advertising has made advertising transactions more efficient by streamlining the process and providing guaranteed impressions. Also, one of the major benefits of programmatic advertising is that you get impressions on a number of platforms and thus your reach increases.
This is done by submitting your ad to many media platforms at one go and then measuring the impressions your advertisement gets from each platform. Also, the advertisements spread across various platforms target the same audience base. So you do not need to worry about your target audience while using programmatic advertising practices.
Programmatic advertising services use targeting tactics to segment audiences to ensure that your ads reach the audience niche you are targeting. Programmatic advertising tactics deploy computer algorithms to complete the ad buying process and cut down the time to market. By using computer algorithms programmatic advertising removes mundane activities to effectively optimize the process.
How has it evolved over the years?
The internet was introduced to the general public in the 90s and then right after the concept of digital advertising came into existence. The first online ad was displayed in October 1994. Since then online advertising has evolved a lot. The flashy jumpy banners and the sidebar ads have been replaced by the target-specific and keyword focused ads that attract the customers.
Also, since their inception, both the internet and online advertising has witnessed a surge in their user base. In early 2009 the programmatic advertising platform was introduced to ad buyers and they created a platform for themselves known as Demand Side Platform (DSP). Subsequently, when the buying platform was presented before publishers and advertisers it led to the creation of the Supply-Side Platform (SSP).
Today, the advertising market has evolved to such a magnanimous scale that automation has also been integrated into this industry. In fact, programmatic advertising will be accountable for $59.45 billion in ad dollars by this year-end for the US market only and this figure is going to increase. Industry experts predict that this figure will reach $81.00 billion by 2021.
Why your business needs programmatic advertising?
Advertising today is not limited to television, print media or huge banners. Instead, modern advertising methods include all forms of advertisement like mobile advertising, display advertising, video advertising, social advertising, search advertising, and television advertising. Programmatic advertising has gained prominence in all of these advertising channels. Recent stats show that programmatic advertising cover 84% of display advertising, 60% of mobile advertising, 58% of video advertising, 32% of social advertising, 26% of search advertising and 8% of television advertising.
Programmatic advertising methods are great for targeting the end audience. When surveyed, 76% of advertisers claimed that they loved the targeting options they get with programmatic advertising services. You get better results than traditional advertising by specifically targeting your audience with programmatic advertising approaches.
Programmatic advertising also ensures high ROI as it uses AI. In simple language, AI works by recognizing and analyzing patterns in the data and over time increases its efficiency. So when AI is used in advertising, it analyzes the patterns and learns to identify the factors that help you get maximum conversion without high recurring costs. Programmatic advertising is a lot easier to implement if you are using it with the appropriate set of tools.
The programmatic ad approach is based on a multi-channel broadcast of your ad. This means that your ad is displayed across various platforms and you have access to an inventory of ad networks. Also, you can advertise on different mediums such as mobile, desktop, tablets, apps and anywhere else that suits your liking.
As the whole process of programmatic advertising is automated and is highly targeted you get reports that are highly enriching and provides you insights on your ad campaigns, market and the buying patterns of the customers. Also with programmatic advertising, you get automated buying platforms and real-time adjusted bids.
Why should you outsource?
Handling programmatic practices is no easy task. It requires a lot of attention and also managing these services by yourself could cost you a bomb. So it is always better to outsource these services. Outsourcing your programmatic ads is very economical as the technology vendors have the apt resources, capabilities, and expertise to run programmatic ads for you.
The thing with the programmatic ads is that you need to dedicate a lot of time to use these ads for your benefits. Tech vendors, on the other hand, have years of expertise and have streamlined processes that can prove beneficial for you.
Also, you get accurate results with these technology vendors. Another advantage of outsourcing your programmatic services is access to their extensive networks. Such networks and relationships are formed over time and a newly formed company will not be able to provide such perks to you.
Now as we know about programmatic services and their benefits, it is wise to use this new advancement in advertising to get maximum benefits for our business. So contact Saffron Edge to get the best programmatic advertising services.
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