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What is Programmatic Advertising? How does it help?

By Oshin Kamble|2nd Feb 2020
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What is Programmatic Advertising? How does it help?

Programmatic advertising is a type of advertising in which an organization has to purchase digital advertising with the use of simple software. Previously, the method of buying it was very difficult, as a long process has to be followed. This long process includes the following:

  • Creation of proposals and requests for it
  • Quotes
  • Tenders
  • Negotiations

Though programmatic marketing has not fully automated the process but the organizations which have to purchase digital marketing get the opportunity to improve their ads. A lot of planning has to be done so that advertising can be optimized. The software will help the organization to plan the advertising in a better and convenient way.

To be more clear, programmatic advertising is the process of buying and selling of media with automation. Although it started as a process to use the leftover inventory, now it has become sophisticated to a very large extent.

How to use programmatic advertising

Here are the steps that an organization can follow in order to use programmatic advertising.


Check the marketplace

The first thing that an organization has to decide is the marketplace where they have to sell their products and services. After selecting an area, the organization has to find more areas in order to expand the business people who can have many types of ideas, which they can use in order to know about the demands of the customers and provide their products accordingly.


Goals are to be set

Organizations need to set goals and plan accordingly to achieve them. It has to check the existing data to know the type of advertising it has been using and its impact on the market. On this basis, the short and long-term goals can be set. The organization can make strategies accordingly to achieve the goals. Organizations must be aware of the fact that before applying programmatic advertising, they have to define clear reasons for applying it so that there is no loss in future.


Human touch

Programmatic advertising can be done on the basis of algorithms and machine but it still needs a human touch. There are various types of platforms, which can be used for this type of advertising. Some of them can be managed fully with the help of machines while others are not and they need a human touch. There are some other technology platforms in which people have to do buying and selling on their own. In such a case, specialized staff needs to be appointed for the purpose.


Protection of the brand

The companies have to do the programmatic analysis so that the advertising can be implemented in the correct way. If there is reliance only on algorithms, the product may reach the wrong market place and the company has to face a huge loss.

Benefits of programmatic advertising

Benefits of programmatic advertising

There are many benefits to this type of advertising which are as follows.


Transparency and control can be increased

Transparency can be easily availed with this kind of advertising. Traditional advertising methods cannot provide such transparency. The advertisers will get the option to check the websites where their ads are going. They can also see that customers who are looking the ads can also check the cost of the ads.


Measurement of data in real-time

One of the major tasks that a marketer and an advertiser have to do is the measurement of data and real-time reporting. Programmatic advertising can help these people to know about the creativeness of their campaign and performance of the ad on the target market after it has been launched. There is no need to wait for a long time to see the results.


Efficiency is increased

The campaign has increased the efficiency of digital marketing and advertisers can see the results and optimize the campaign accordingly. This lead to an increase in the efficiency of the campaign.


Improved targeting of customers

Due to the strong machine learning algorithms of programmatic advertising, optimization of real-time campaigns if performed even more effectively. Programmatic advertising analyses the ad campaign inputs including the demographics, customer buying behaviour, etc. and directs the company to the right passage. So that the ads are targeted to the right person (whose need is our brand), and the prospect is converted into a customer.


Avoids ineffective inventory

As it targets the right customer, the inventory is used up effectively. Thereby, avoiding the useless inventory.


Helps in taking the right decision

Programmatic advertising provides data derived from ad campaigns. The data so collected is analysed to extract the people in need of the product. The digital marketers can then decide on the appropriate strategy to make more conversions and resultantly increase sales.

Should digital marketers depend on programmatic advertising

Digital marketers can depend on programmatic advertising for effective results. The reasons for relying on programmatic advertising are as follows:

1. Programmatic advertising makes the ad inventories easily accessible.

2. Manages ad campaigns effectively

3. Is one of the best targeting tactics, which enables the delivery of ads to the right customer.

Closing thoughts

There are many other benefits of programmatic advertising and organizations have to take a lot of steps to move from traditional advertising to this type of advertising. Programmatic advertising has brought ease in buying digital marketing which was very tough previously. Organizations have to do a lot of analysis before adopting this type of advertising.

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