Viewed as the future of online advertising, programmatic marketing will account for the majority of all digital advertising spending within the next few years. This method of advertising is extremely effective but can seem more complex and different than previous digital ad purchasing methods. However, once advertisers learn about programmatic marketing, they will realize that the advantages far outweigh any learning curve involved!

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How Does Programmatic Marketing Work?

Programmatic marketing provides an opportunity to target a specific customer, using specific context, at a specific time. This is accomplished through an automated bidding process on web pages that have advertising space constructed for programmatic marketing. When a user visits on of these specific pages, the page’s publisher places an ad impression for auction in an ad marketplace. The ad marketplace then runs an auction for advertisers who are interested in displaying an ad to the specific user that just clicked on the page. Although, there may be numerous advertisers who take part in the auction, whoever bids the most ultimately gets to display their ad to the user when the page loads.

Automated Software Makes the Process Fast and Easy!

Programmatic media buying is completed in real time, without relying on human touch, manual trading or manual insertions. The whole system is automated, with the maximum price that each advertiser wants to spend for the impression already programmed in. Because of the automated process, the auction can be completed within milliseconds – or the time it takes for the page to load. There is no effect on page load times or user experience while programmatic marketing is taking place; most users don’t even realize it is happening!

The Advantages are Limitless:

More Flexibility

Programmatic marketing is easier and more flexible compared to traditional digital ad placement, which needed to be done manually. Advertising prices no longer need to be pre-negotiated and advertisers only pay for the impressions that they receive. Programmatic marketing is truly changing the digital marketplace!

Advertising Costs that Fit Your Budget

With programmatic marketing, advertisers can procure digital media that fits their budget. Since advertisers are not locked into a contract to run a certain number of ads with one specific website, they have the freedom to purchase digital media across multiple publishers. Because of this, programmatic marketing is more cost effective that site specific marketing strategies.

Target the Perfect Customer for Your Company

Programmatic marketing utilizes a software system to target the exact audience you want your advertising to reach. An algorithmic process is used to determine what resonates with each person, so that they can be targeted on the sites that they are most likely to engage with, at the time that they are most likely to engage. This behavioural targeting capability is heavily linked to tracking cookies.

Completing digital marketing using the programmatic marketing method allows for a more precise, personalized message to be delivered to potential customers.

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Results-Driven Campaigns

The digital age allows media ad buyers the capability to continually check-in with campaign performance, such as key analytics surrounding their programmatic marketing campaign, which allows marketers to then narrow their target audience in order to increase the campaign engagement and success. This is very different from past digital advertising methods, when advertisers were confined to a publisher’s contract that determined a set number of ads to be run, regardless of how they were performing.

There are also controls within the programmatic technology that enables advertisers to buy ads that are more viewable than others. This is advantageous for advertisers, who can opt to purchase only the top 10% of ads that are viewed for the most amount of time.

Social Networks are the Big Players

In recent years, social media sites such as Facebook, Twitter and LinkedIn have been fast to own programmatic ad-tech companies across not only their own platforms, but the entire web. Because social media networks have an abundance of login data, they have an advantage over the majority of independent ad-tech companies when selling ads.

The Future of Digital Advertising

Google estimates that in 2017, 60% of digital advertising budgets will be spent using programmatic marketing. According to Zenith’s Programmatic Marketing Forecasts, programmatic advertising will grow 31% this year. Not only will programmatic advertising grow faster than social media and online video, but it will also grow faster than all other digital channels.

Programmatic marketing budget allotments are increasing and the world of programmatic buying systems is continuing to grow as well. This type of marketing is quickly moving into TV, radio and out of home advertising; for example, a branding commercial that is displayed on someone’s TV can also be displayed on their computer via a Facebook advertisement. With programmatic marketing’s capabilities continuing to grow, it’s exciting to consider what the future of digital marketing will become!

If you are interested in taking advantage of the benefits of Programmatic Marketing, Rocket Digital in Hamilton, Ontario can help.  Our team will work with you to find a custom solution for your digital marketing needs.