What Is Programmatic Advertising?

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Using SSPs, publishers can deliver display, video, and native ads to their visitors, as well as monetize their website and apps. Over the years, SSPs have expanded their functionality, especially with the help of services like Oxagile, and many now include ad exchange mechanisms that allow publishers to connect to DSPs directly, rather than through other ad exchanges.

With digital's incredible pace of change, always on the lookout for something new and more efficient is today's advertiser. There are many options in digital marketing, one of which is programmatic advertising, the technology-based means by which buying and selling of space in digital media occurs without much human interaction.

Programmatic advertising refers to the use of software for the purchase of digital space. Instead of negotiating a deal with publishers, advertisers employ an algorithm to place a real-time auction for ad impressions. This process allows advertisers to buy more efficient and targeted advertisements.

How Does Programmatic Advertising Work?

Ad Exchange:

An ad exchange is a digital marketplace for advertisers and publishers to meet. The advertisers will make a bid for the impression, and the highest bidder will win the opportunity to place the ad.

Demand-Side Platform (DSP):

The DSP is a software that allows the advertisers to buy and manage ad inventory from different ad exchanges. It will automatically make a bid and assist in optimizing the campaign.

Supply-Side Platform (SSP):

An SSP is an ad inventory management and selling platform that bridges publishers to advertisers and also facilitates the ad auction.

Data Management Platform (DMP):

A DMP collates and analyzes data of the behavior, demographics, and interests of users. These data are used to target certain audience segments for advertisements.

Why Programmatic Advertising is Important?

Improved Efficiency:

Programmatic advertising automates the ad buying process. It saves time and resources. It also enables the advertiser to target more accurately and optimize better.

Real-Time Bidding:

Programmatic advertising permits real-time bidding for impressions of advertisements. Advertisers can change their bids according to audience demographics, device type, and even time of day.

Precise Targeting:

Programmatic advertising uses data and advanced targeting techniques that enable advertisers to target their audience with highly relevant ads.

Measurable Results:

Programmatic advertising provides tremendous analytics and insights about the campaigns. Impressions, clicks, and conversion metrics may be tracked to evaluate the efficiency of a campaign.

Cost-Effective:

Programmatic advertising can be cheaper than conventional methods of advertising. Because the buying process is automated and campaigns are optimized, advertisers can get the highest ROI.

Benefits of Programmatic Advertising

Breadth Reach:

Programmatic advertising allows an advertiser to have a greater reach across numerous devices and platforms.

Better Targeting:

Through the use of data and superior targeting abilities, the right message could be delivered to the right crowd at the right time through these advertisers.

Brand Recognition will Skyrocket:

Audience Exposure to your brand will sky-rocket with programmatic ads.

More Conversions:

The use of relevant ads in serving the right people will drive higher conversion rates and sale with programmatic ads

Data-Based Decision Making

Programmatic advertising gives deep insights into campaign performance for advertisers to make data-driven decisions towards optimizing their strategy.