Search Engine Advertising

What Is Programmatic Advertising?

What Is Programmatic Advertising?

Programmatic advertising is the new buzzword in search engine marketing. Programmatic ads can also be applied to other online marketing channels like social media, display and video advertising. But what exactly is programmatic advertising?

We will give you the answer to this question and outline the advantages of programmatic advertising.

What Is Programmatic Advertising?

Programmatic advertising automates the media-buying decision-making process. This means that algorithms manage the bids and budgets for marketing measures in real-time in order to reach the defined marketing goals.
Programmatic advertising is an extension of Real Time Bidding (RTB) and combines RTB with Artificial Intelligence.

Real Time Bidding refers to the buying and selling of online ad impressions in real-time auctions. These auctions take place when a page starts to load. AdWords (DoubleClick Search Performance Bidding Suite), Bing Ads (Microsoft Advertising Exchange), Facebook Ads (Facebook Exchange) etc. provide their own tools for Real Time Bidding.

How Does Programmatic Advertising Work?

Programmatic advertising is based on an algorithm that attempts to place the most relevant ads in the best position. It does this by first evaluating the relevance of the ad to the target group. In addition, it evaluates the probability that the ad will achieve its marketing goals. Based on these evaluations, the algorithm places bids.

The algorithm learns based on successful sales or other conversions (e.g. contact form submissions). It identifies which combinations of ad placements, target groups, time (e.g. weekday or time of day), bids, devices and ads are most likely to reach the specified marketing goals. In this way the algorithm collects information about the target group, its potential and its probability of clicking on an ad and of converting.  The algorithm then uses the information it learns for future decision-making.

There is a wide range of tools available for Programmatic Advertising such as Choicestream or Mediahead.

The Advantages of Programmatic Advertising

Programmatic advertising is efficient. As soon as the algorithm is defined, it manages and optimizes the campaigns automatically. As a result you have more time to develop marketing strategies and concepts.

In addition, the algorithm is constantly learning and improving its ability to reach your target group for example at the right time, on the right device and with the right ad based on demographic and geographic characteristics, interests and behavior. Thereby the campaign performance and the return on investment (ROI) will improve.

Please contact me via email if you have any questions regarding programmatic advertising.