Programmatic Ad Buying

The sum of what programmatic ad buying is can be summed up in these words: human-free, algorithm-based advertising. According to many in the online marketing industry, it is the future of advertising. But is it really? Read below to know more.

Programmatic ad buying stems from a need by companies to ensure that the people they are showing their ads to are hot leads or people who are most likely to buy their products or services. In the past, this attempt at targeting hot leads was done via pay-per-click advertising or PPC and Facebook advertising. With PPC, the leads are pre-qualified via the keywords being searched for. This is especially problem-based targeting that is often limited by the lack information on demographics.

On the other hand, Facebook advertising uses demographic information like gender, age, location as the baseline information for targeting ads. However, as users do things within their accounts like search, like, and comment, more information is gathered about them and ads can be become more targeted.

While you can say that Facebook advertising is more programmatic than PPC, the fact of the matter is that the sum of what both platforms can do is nothing compared to the entire breadth and depth of programmatic advertising.

As we said before, with this relatively new platform, the process of ad buying is done human-free 100 percent. But how does it work? When clients sign up for a programmatic ad network, an algorithm takes points from the customer information of the clients and then matches them with the information that can be gleaned from a website where the ads will appear. When there is a match, the bidding is done automatically and ads are displayed on web pages in the same fashion.

The process of matching, bidding on ads and displaying happens within a matter of milliseconds and website users will not notice any difference in the speed of the website. However, they might notice that the website displays ads that actually speak to them. This is because even the language used in the ad is based on the algorithm.

Programmatic advertising is all about buying ads in the same way that you buy ads on Amazon. Itís also about being able to bid on ads like you would on Google Adwords, paying whatever amount of money an ad is worth at any given time. Most important, itís all about targeting the right person the right ad at the right time. And all of these is done without any human interference.

When you sign up for a programmatic advertising network, the only thing you need to do is make a few clicks with your mouse, and then you can set and forget it. Experts like to call it the better mousetrap in online advertising.

It is expected that that number of programmatic ads being shown will increase dramatically within the next six months, specifically, to 58% of display ads and to 53% of mobile ads.

More details can be found at Core Pedia.