Programmatic ad buying has completely transformed the way publishers and advertisers transact in the ad marketplace. Whereas traditional online advertising involves a lot of manual work that can stretch from a few days to months, programmatic advertising makes it possible to buy and sell ad space almost instantaneously.
This has resulted in more and more brands and agencies adapting this method of ad buying. Research from 2018 shows that two-thirds of digital ad spending and 85% of digital advertising in the U.S. is programmatic. This means that a staggering $80 billion has been allotted to programmatic media buying.
What Is Programmatic Advertising?
Before we dive into what it can do for your brand or company, let’s first define what programmatic advertising is. Put simply, it is the automated process of buying advertising space from publishers. This can be on a website or an app. It utilizes AI-powered algorithms and real-time data insights to determine which ads should be displayed to a particular user.
5 Reasons Programmatic Ad Buying Can Benefit Your Company
Whether you’re a small or big brand, programmatic advertising can provide multiple advantages to your company. These include:
- Audience Targeting Capabilities
For you to make the most out of your ad spend and increase ROI, your advertisements have to reach the right people. Programmatic ad buying’s targeting capabilities enable companies to display ads on websites based on factors like location, buyer intent, household income, demographics, and interests. This ensures that all ads are strategically displayed in spots that would likely drive more traffic and revenue.
- Process Automation
With traditional media buying, companies have to go through the laborious process of researching, negotiating, requesting proposals, and preparing insertion orders. Programmatic ad buying automates the whole process by enabling brands and agencies to purchase ad space on websites and apps within a few seconds. This saves you valuable time that’s better spent on optimizing your content strategy.
- Increased Media Buying Transparency
Before the invention of programmatic advertising, companies had no way of knowing where their ads would be posted. This increased their risk of exposure to fraudulent activities like click hijacking, which steals clicks off of real ads. Now, thanks to programmatic, advertisers can rest easy knowing which websites their ads would be placed on and who are viewing their ads.
- Greater Audience Reach
As of January 2021, there are over 4.66 billion active internet users in the world. That’s around 59.5% of the global population that could serve as your potential audience. Programmatic advertising enables you to reach these people by giving you access to a seemingly unlimited supply of ad inventory across millions of websites from around the world.
- Real-Time Insights and Data Measurement
Programmatic advertising provides real-time statistics as to how ad campaigns are performing. Companies can track performance as soon as the ads have been displayed on the website. This enables them to gauge whether their marketing strategy is effective or if it needs changing.
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