The TL;DR version:
Programmatic advertising is a method of buying and selling digital advertising space using automated technology and algorithms. Instead of negotiating deals manually, programmatic advertising relies on a system that connects advertisers and publishers through an automated process.
Most digital agencies have access to the same (or very similar) inventory as publishers want to get the most bids (competition) for the eyeballs they deliver. The difference between a successful campaign and a dud is likely the background and ability of your agency. Note that our approach leverages a thorough process and asking the right questions to deliver a customized audience. Sometimes our questions highlight gaps in our clients’ understanding of their target market, and that’s okay. We’re in this to answer those questions and create targeted, measurable campaigns.
The long version:
Advertisers express their preferences, such as target audience, budget, and campaign objectives. Using specialized software known as a demand-side platform (DSP), advertisers set their parameters. On the other side, publishers make their advertising inventory available through supply-side platforms (SSPs). These platforms communicate with each other through ad exchanges or real-time bidding (RTB) auctions.
When a user visits a website or a mobile app, a real-time bidding auction takes place in the background, where advertisers bid for the opportunity to display their ad to that specific user. The ad exchange considers factors like user demographics, browsing behavior, and available ad space to determine the most relevant and valuable ad to display. The highest bidder wins the auction and their ad is instantly shown to the user.
Programmatic advertising allows for precise targeting, as it leverages data and algorithms to identify the most suitable audience for a particular ad. It can also be used to deliver personalized ads in real time, based on individual user characteristics. This automated approach streamlines the advertising process, making it more efficient and scalable.
Overall, programmatic advertising enables advertisers to reach their target audience more effectively and publishers to monetize their digital inventory efficiently. It has revolutionized the advertising industry by replacing manual negotiations with a sophisticated, automated system that maximizes ad effectiveness and optimizes ad spending.