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What is Programmatic Advertising?
Programmatic advertising is an automated method for buying and selling online ad placements. In the past, tasks such as ordering, configuring, and reporting on ads were done manually. However, programmatic advertising has streamlined this process, making it more efficient and effective. Owing to programmatic platforms that have amassed extensive ad inventory and databases, all ad formats and channels can now be accessed programmatically.
Programmatic Advertising Metaphor Explanation
Temple Street Night Market represents the digital advertising space, the various stalls are different websites, and the products for sale are the ad spaces.
Without programmatic advertising, if you, as an advertiser, want to buy ad spaces (or ‘products’), you’d need to walk around, visit each stall (or ‘website’), negotiate prices, and manually keep track of what you’ve bought and where. This process can be time-consuming and inefficient.
Now, think of programmatic advertising as a personal shopping assistant equipped with a high-tech device. This assistant knows exactly what you’re looking for, and it uses its device to scan the entire market in seconds, bidding on the best products that fit your specifications and budget. The device also automatically records all transactions, making tracking and reporting effortless.
In this way, programmatic advertising, like a tech-savvy personal shopping assistant, makes the process of buying ad spaces quicker, more efficient, and tailored to your specific needs.
Why is Programmatic Advertising Important?
Before programmatic advertising, accessing ad inventory was challenging. Programmatic advertising, through automation, eased this process. Its benefits include scalability, allowing advertisers to reach large audiences; real-time flexibility for adjusting ads; improved targeting capabilities for efficient budget use; and overall efficiency, serving more relevant ads and ensuring better returns for both advertisers and publishers.