When securing a business deal, your overall satisfaction comes from the fact that you secured another way to boost revenue. But a huge part of the thrill comes from beating your competitors. You could also get the best of both worlds when you invest in programmatic advertising.
What is Programmatic Advertising?
Marketers are trained to study consumer behaviour and reasoning. They need an in-depth understanding of how the target market works to create strategies that resonate with the right audience.
Marketing psychology begins with the target market’s lifestyle, interests, everyday needs and location. This set of data predicts consumer behaviour and the eventual success of the business campaign. Programmatic advertising is primarily based on the same information.
Programmatic advertising is an automated way to create hyper-targeted ads. It combines artificial intelligence and machine learning for real-time buying and selling of online ad spaces. The algorithm is computerised bidding based on the target user’s interests, geographic location and other relevant data.
Programmatic ads streamline the way advertisers buy ad space through various technologies.
- Demand-Side Platforms (DSP), which lets advertisers buy ad space on digital environments
- Supply-Side Platforms (SSP), where publishers and media owners sell available ad spaces
- Data Management Platforms (DMP), where organizations manage digital marketing data
With these programs, the bidding process for ad space is faster and smarter. There’s no need for large piles of paperwork and lengthy negotiations, either. The algorithmic software takes care of it all.
How Does Programmatic Advertising Work?
Programmatic advertising simplifies the ad buying and selling process. It lets your marketing team focus on optimising your marketing campaigns and updating your strategies based on consumer behaviour.
When you secure an ad space, the algorithm quickly determines how a user will respond to your ad.
The moment the user clicks on your website, the algorithm sends this information to the supply-side platform. Here, the SSP goes through the cookies to check user behaviour, demographics, engagement and location. This data is then sent to the demand-side platform to determine whether a specific ad is relevant to the user.
This is where real-time bidding occurs. The DSP sends a bid to the SSP, which often awards the ad space to the highest bidder. Once there is a winner, the SSP shows that ad on the user’s page to consider.
All this happens while the user’s screen loads up. It’s quick enough to attract attention and lower bounce rates.
How Does Your Business Benefit from Programmatic Ads?
Programmatic advertising literally works in a split second. It operates at lightning speed to customise the user experience and spark their interest in your brand. Speed aside, your business benefits in various ways.
- Lower advertising costs, which is the result of an automated process that handles everything
- More time to focus on campaigns, which is the result of the algorithm’s streamlined advertising
- More significant audience insights, which is the result of user data gathering through cookies and reports
- Better efficiency, which is the result of technologies that send the right ad message at the right time
Arguably the most critical benefit of programmatic advertising is how it narrows down your target audience and personalises their ad experience. It uses sophisticated algorithm for the most adequate market segmentation, guaranteeing that your ad appears relevant and attractive to the user.
Ready to get started? Let’s discuss programmatic ads today.