Categories: Programmatic Advertising|By |7.1 min read|

Programmatic Advertising is the Future

Programmatic Advertising provides publishers and advertisers with an automated technique to increase ad effectiveness. It’s quickly become a popular way for both buyers and sellers of digital ad, and it has the potential to become the future of advertising.

Since the first banner ad was displayed in 1994, the internet advertising ecosystem has gone a long way. Digital devices have become common. Mobile devices and digital radio are ubiquitous. Music streaming services have taken their space. Different formats require different advertising techniques. The demands of users and consumers have changed. So, the methods of advertising have changed too. It becomes difficult to do business in the world without digital advertising. Hence, Programmatic Advertising is playing a key role in this evolving digital world.

How does Programmatic Advertising work?

Programmatic uses AI to purchase and optimize digital advertising campaigns in live time. Rather than purchasing digital real estate for advertisements directly from a publisher, programmatic utilizes automated technology to create quick and efficient transactions for advertisers. This form of advertising uses real time bidding (RTB) to auction off the digital ad real estate as soon as a visitor enters the website.

Programmatic uses a sophisticated algorithm to get the job done during RTB. With programmatic advertising’s advanced algorithm, brands have the ability to capture exactly the audience they’re seeking at exactly the right moment. Additionally, traffic data and online display targeting are used to drive impressions.

Is Programmatic the Future of Programmatic Advertising

Now that you know what programmatic is and how it works you may be wondering, “is programmatic advertising the future of marketing?” While no one can forecast the digital future completely, many experts believe it might be the future of the digital advertising sector. There is a good chance that the use of programmatic will only begin to grow as digital advertising becomes more and more important. But what does the future of programmatic ad buying look like?

Many experts believe programmatic advertising might be the future of the digital advertising sector. It has already become a popular method for ad exchanges between marketers and publishers due to its potential to drive more impressions, capture correct audiences, and speed up transactions. As digital advertising grows more essential, there is a strong possibility that the usage of programmatic will only increase.

For brands, the massive amount of publishers distributing space can pose both a good and bad thing. A pro for brands is that there are endless options of onlines spaces where they can reach a specific target of customers. These brands can use programmatic advertising for both advertising and marketing purposes because it is beneficial for both. There is no need to go deeper into the debate of marketing vs advertising. A con is that with so many publishers, publishers would now be looking for the intense administrative effort to complete inventory sales, which would decrease ad efficacy. Fortunately, automated ads serve as a solution.

Automated advertising allows for media buying transactions to be completed in the blink of an eye. With RTB ad space, inventory is bought and sold as quickly as 100 milliseconds per transaction. This allows for greater ad efficacy – something beneficial for advertisers, and ultimately publishers as well. Selling becomes easy due to automated advertising. Customers are able to see those ads in which they are interested. Programmatic display CTR benchmarks are used to assess the success of display ad campaigns and evaluate their performance against industry norms. Campaign performance has strengthened after programmatic advertising. In programmatic technology, the appropriate message is provided to the appropriate audience.

While automated advertisements might improve ad performance by speeding up the transaction process, can they assure exact targeting? Programmatic advertisements very certainly can. That is why many people believe it is the future of advertising. This form of ad buying, with real data and the effectiveness of artificial intelligence, provides for a far more effective technique of targeting the relevant audience via commercials. It also enables more precise targeting across a wide range of platforms. In essence, as digital advertising grows, so will programmatic.

So the answer to whether or not programmatic will be the future of ads lie in the growth of the industry. As more publishers saturate the market for brands, the need for it becomes more and more critical. With so many options for online marketers, it’s a no-brainer that AI technology, packed with a complex algorithm, is necessary for ad efficacy. So, at this rate, the future of programmatic advertising looks bright.

Better data-driven marketing decisions, better targeting and creative methods, more scientific evaluation of media expenditure, and instilling a test-and-learn mentality are here to stay, and we will continue to drive these concepts forward with our customers across all digital platforms.

Is Programmatic Advertising effective?

Programmatic advertising is a very effective method of ad exchange that is being implemented into various company strategies. Programmatic advertising is more focused than traditional advertising campaigns, enhancing audience segmentation and addressability—an important aspect in the post-cookie world. More brands are embracing programmatic than ever. The application of AI and machine intelligence in programmatic advertising benefits both publishers and marketers. Here are a few important advantages:

Bigger Reach: Marketers can reach a larger audience without spending extra money or putting in unnecessary work.

More Transparency: Real-time data of users allows for better transparency.

Targeting beyond CTR: It allows for more advanced targeting, such as interest targeting and lookalike audiences.

Data insights in real-time: Live data regarding ad placements and performance, allows both ends to optimize ad campaigns more quickly and efficiently. This provides valuable insights.

Relevancy: Advertisers can ensure that their ads are more relevant and reach the targeted audience via live data and reporting.

What percentage of Advertising is Programmatic?

Programmatic is rapidly growing as a method of advertising for marketers in the US. In a survey done by Statista, in 2021, 54% of media advertising budgets in the US were dedicated to programmatic advertising. The other 46% of the digital media budget was dedicated to direct advertising. So more than half of the digital advertising in 2021 was done via programmatic.

What’s wrong with Programmatic Advertising?

Programmatic certainly comes with a long list of benefits, but that isn’t to say that there aren’t a few flaws. One concern is that many advertisers lack proper knowledge of the growing ad exchange technology.

Some advertisers complain about the lack of transparency. Though this is highly debated. Those that believe that this ad exchange method lacks transparency express the possibility that this could lead to brands having to spend more money in the long run. Though if executed correctly and with the right knowledge, transparency shouldn’t be an issue. In fact, data provided during programmatic can actually help to improve transparency.

Lastly, a concern for advertisers with programmatic buying is ad fraud. How can brands be sure that their ad is being viewed by a real person? Fortunately, many platforms are working to eliminate bots to prevent potential fraud. Ultimately it’s up to the individual advertiser to determine if the benefits outweigh the potential issues associated with programmatic.

The Future of Ad Buying and Third Party Cookies in a Post Cookie World:

Ad tech vendors often use first-party data and third-party data. 1st party data and third-party data are big areas of discussion right now. When it comes to first-party cookies and third-party cookies, where does programmatic fit in? Well, the digital ad business must adapt to the demands of global consumers for tighter security. The industry has taken the first step toward a cookie-free world, with brands and marketers increasingly focusing on user-oriented solutions that deliver outcomes while adhering to privacy standards.

New regulations have forced marketers to find new and effective ways of targeting consumers. Brands that depend heavily on programmatic are especially affected. For example, industry such as CPG, manufacturing wholesale is crucial to developing new strategies. But programmatic isn’t going anywhere and could account for 89% of ad spending on digital displays in the world. Therefore, it is easy to assume that programmatic ads possess a huge chunk of digital ads. This is because programmatic advertising goes over the top by utilizing machine learning.

The future of programmatic digital marketing certainly has a high amount of potential. Several companies are directing their ad spend towards programmatic to improve targeting. The potential for data, effectiveness in reaching the target audience, and more are just a few of the many reasons why programmatic holds real value for the future.