What is Programmatic Display Advertising? 2019 Guide

programmatic, programmatic display advertising, what is programmatic display advertising

When most companies think of placing a programmatic buy, they think of a costly, complicated campaign. What most brands should realize is programmatic advertising offers targeting power and efficiency conventional display outlets simply can’t reach. High-tech analytical software allows advertisers to place ads directly on websites that are beyond the capacity of Google and other conventional methods, with the precision that only data can provide.

With Google targeting over 60% of its digital advertising budgets on programmatic in 2019, programmatic marketing is a lock for the future of online advertising. Forrester even claims that in the next couple of years, programmatic will accommodate most of all digital advertising spending.

The growth of online advertising and programmatic makes sense given how much print advertising has declined. According to GroupM, digital advertising will amount to 95% of net global advertising growth in 2018 and 99% in 2019. And according to eMarketer over 82.5% of every US digital display ad will be brought via an automated channel in 2018, with over $65 billion spent on Programmatic Display Advertising by 2020.

While most businesses would benefit from a strong programmatic campaign, they fail to create them because of its perceived complexity. However, once marketers are able to get around it, the results can be enormous.

Now let’s get an in-depth look at what programmatic display advertising really is.

What is Programmatic Display Advertising?

Programmatic display advertising is a digital advertising process that uses algorithms powered by advanced software to automate the buying, selling and optimization of online display advertisements to targeted customers when they browse websites.

Previously, digital ads had to be bought and then sold by human ad buyers as well as salespeople. But with programmatic advertising, ads are placed by using real-time bidding (RTB) and artificial intelligence for social media advertising, display and also mobile and video campaigns. It is also being utilized in traditional TV advertising marketplaces.

It may sound like standard display advertising, but there is a smart strategy behind its process of ad placement. Programmatic display advertising optimizes and displays ads for those customers who are targeted on demographics such as salary, age bracket, job types, hobbies, as well as their interests based on what they currently browse for.

The best part of it is that you can actually monitor the people who view your ad and make alterations to your campaign in real-time to better appease your audience.

How to Run a Programmatic Display Campaign

Now the first thing you need in order to make this a reality is to use a piece of software that gives you access to the inventory where advertisements can be placed as well as allow bids to be placed for your target demographics. What you’re looking for is a demand-side software (DSP) with the use of its algorithms and interfaces.

Be advised however that the DSP software is quite complex and can be costly, so there’s a wall you have to scale before the ad placements and stuff. But opting for a DSP and an agency depends on the cost of their services, the plans that they put together such as knowing your target audience and how much inventory that they have access to.

The Benefits of Using Programmatic Advertising

Programmatic advertising has gone so far ahead that it has touched every advertising channel in existence and is not showing any signs of slowing down now or for years to come.

Here are the statistics of agencies and brands purchasing programmatically in several channels:

  • Display: 80%
  • Mobile: 60%
  • Video: 58%
  • Social: 32%
  • Search: 26%
  • TV: 8%

So as you can see, there is a great amount of potential in utilizing programmatic display advertising and here are some of the glorious benefits that await you for developing your first programmatic advertising campaign:

  1. High ROI: Programmatic advertising gets its name because it uses artificial intelligence, which means the program always learns and gets better at placing your ads at the most convenient place and time for the most ROI and conversion.

One of the best success stories of programmatic advertising is CarTrade. Because of programmatic advertising, CT was able to increase its conversion rates by 30%, CTR by 120% and also generate 5 times more leads than before.

  1. Targeting: As we said earlier, programmatic advertising is like PPC, only that it is more effective since it laser-targets your audience. This was demonstrated by the Economist when they created 60 creatives to target 650,000 prospects who were reading the same articles from their site on other top news sites.

Here is how The Economist was able to achieve that:

A user was reading an article regarding the death of Mediterranean migrants on the Telegraph, while at the same time, the user saw an ad from the Economist that read “Why has the Mediterranean turned into the Dead Sea?” This led the user to the exact same story that was covered by the Economist.

With the aid of dynamic advertising, creatives are made in real-time, which in turn match the user’s preferences on the story they were reading on the Telegraph, to have them directed to the same story on the Economist.

  1. Transparency: Programmatic display advertising provides both marketers and advertisers a sense of transparency, which is something they can’t get from traditional advertising. To be frank, advertisers are able to see which sites their ads appear on, the type of customer looking at their ads, as well as the costs that come with it. All of this can be viewed in real-time with a single click of your mouse. So you won’t have to wait for the campaign to be over or lack in any crucial piece of information.
  2. Improved Reporting: Thanks to the AI that powers it, programmatic advertising can provide you with reports and insights on your ads, campaigns, target audience, buying patterns as well as other factors that can help your marketing become more effective and efficient.
  3. Multichannel: Google AdWords are fine for what they are when you need to showcase your ads to potential customers. But the downside to it is that your ads can only be displayed on Google’s partner websites and not the non-partner ones.
  4. Real-Time Measurement: Perhaps one of the greatest qualities of programmatic display advertising, if not the greatest, is the ability to measure data and recording in real-time. Now advertisers will know how well their campaign is performing after it has been launched. This is where traditional advertising is beat because don’t have had to wait until the end of the campaign to know the results and every important detail for your campaign is there too.

So with all that being taken into account, your company or brand can’t do any wrong with programmatic display advertising. You can accurately target your audience, have real-time data and recording measurement, high ROI, get insights and reports on what your customers are doing and have your ads displayed on multiple channels. At this point, it might even be that programmatic display is 100% fail-proof.

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