Programmatic Advertising: What It is and How It Works

Ever scrolled through your favorite website and noticed that the ads seemed to be put there just for you? If so, you are not alone!

Typically, this convenient marketing placement occurs thanks to programmatic advertising. However, most business owners have no idea what programmatic advertising is, much less how it works.

The creative minds at Insights ABM wanted to change that, which is why we created this crash course to programmatic advertising. As digital advertising specialists and a programmatic marketing company, we know what it takes to implement programmatic advertising successfully. 

In the article below, we define programmatic advertising and explain how it works. We’ll even outline the potential benefits that it can have for your business.

What is Programmatic Advertising?

Like many other digital functions, programmatic advertising relies on advanced software algorithms. This software automatically purchases digital advertising space on streaming platforms, audio programs, and the world wide web. Programmatic advertising is even used with in-game apps.

Instead of randomly placing marketing materials that have no connection to users, programmatic advertising allows professionals to target a specific audience. 

Ads are matched with consumers based on a variety of information, such as:

• Browsing behavior
• Search habits
• Demographic information

Programmatic advertising is surging in popularity because it is effective. Currently, 62% of marketers use programmatic advertising, but that number is sure to rise over the next few years. 

Not only has the use of programmatic advertising increased, but its share of the total digital ad spending has risen, as well.

How Does It Work?

Programmatic advertising allows marketers to set bid rates for display advertising. The algorithms then automatically bid on the current ad “inventory” every time a target user conducts a search. 

These algorithms are competing for the opportunity to display a specific ad to the targeted customer group. This means that the bidding involved in programmatic advertising is different from traditional PPC campaigns.

Benefits of Programmatic Advertising

There are several significant benefits to programmatic advertising, which is why it is being widely adopted by marketing teams across the globe. These benefits include:

Higher ROI

When you are working with a limited marketing budget, it is important that you make every dollar count. Programmatic advertising offers a higher return on investment than many other paid advertising mediums. This is because every ad is targeted at your ideal consumer. The result is high-quality leads that are more likely to convert.

Leverages Consumer Data

The best digital marketing strategies leverage data to connect ads with consumers. Programmatic advertising accomplishes this task better than any other method of digital marketing. 

The advertising software automatically analyzes demographic information, search patterns, and other data to locate consumers that may be interested in your product. It then bids on ad space and displays your content to these consumers.

Reduces Overall Marketing Costs

By increasing ROI, you can reduce marketing costs. You can spend less on advertising, create higher quality leads, and boost sales through programmatic marketing. This frees up resources that can be applied to other aspects of growing your business, such as buying additional inventory.

Programmatic Marketing Company in Dallas

As you can see, setting up a programmatic campaign can be extremely involved. That is why many business owners turn to a programmatic marketing company like Insights ABM.

When you partner with our team, we oversee every aspect of your programmatic advertising campaign. We will set bids, create ad materials, and monitor the success of the campaign. This allows you to focus on the day-to-day operations of your business while simultaneously maximizing your ROI.

If you would like to learn more about our programmatic services, contact Insights ABM today. We are ready to make your brand stand out!