Isn’t this new name sounding like an extension of C++ or Java? Well, no, you are mistaken. This Programmatic advertising is a software that is used to buy digital advertising space without having any human negotiations and pre-set prices involved. The advertisers in programmatic advertising will analytically target the audience based on the metrics acquired through different algorithms.
Still, confused? This will clear your confusion.
So, basically an advertiser's job is to target the audience and in this type of advertising, the advertiser will target the ones who have visited the website based on different variables. These variables are age, gender, frequently visited websites, etc.
The algorithm in this advertising format will determine well, on where the ad money is best spent. There is no possibility of a human error because it replaces the human touch of media buying with technology-based solutions.
Now, are you clear with programmatic advertising? Now, let’s jump to how this is related to real-time bidding.
This is exactly what the name implies, real-time bidding is just a part of programmatic advertising, where the buyers can buy the advertising space through an auction system from the publishers.
Whereas, programmatic advertising will facilitate the marketers to message effectively across desired channels and make the most to reach popular markets and demographics. This will enable new opportunities because the marketers will be focusing on reaching the audience efficiently.
So, these both sounds like one and the same, but are different. Their influence on the online ad industry will give a huge impact that it will make easily accessible for ad exchange.
What makes this important for a marketer?
1. Enhancing transparency: This technology offers a thin line of transparency that we generally don’t get from other metrics. So, let me tell you about this thin line of transparency. Advertisers can easily check on which website is their Ad being displayed and what type of customer is looking at the Ad. There is 100% transparency involved in this type of advertising and the advertiser can make the necessary changes and make it much more effective.
2. Real-time measurement: It is very important for advertisers and marketers to have the ability to measure the campaign setup. Programmatic allows measuring how a campaign is running, it is overall targeting of the users, to how many users the Ad has been reached, etc. Now the marketers are not required to wait till the whole campaign is complete.
3. Targeting rightly: You might have heard of this word very often and every business main goal is to target the right ones so that there is no discrepancy at the time of retargeting them back.
Let me give you an example of this
IP targeting: This is basically about zoning in on a specific IP address. In this way, you can be able to target a specific business or a household.
Geo-location targeting: This is targeting based on the city, state, zip code, etc. A specific location can be targeted without having to worry about disturbing the other audiences.
Contextual keyword targeting: This is used by the advertisers to match keyword-focused ads to the sites within the Google display network.
Retargeting: Well, this surely is one of the most favorite for all the marketers, as this the only way they can reach several ideal audiences and encourage them to purchase the product or service.
We all know it is hard to get the attention of the user at first glance and it takes a lot of effort to get that done. So, for the user to land an eye on your post, you need to start retargeting them. Retargeting will make them see the post again and again, which will persuade them to buy.