Programmatic Advertising: All You Need to Know to Master it

The automated method involved in the process of buying and selling digital ad space via the use of advanced software and algorithms curated by the end user on the basis of their digital footprints is known as programmatic advertising. This tech driven method help marketers to participate in real time bidding for ad space by removing the traditional practices such as negotiations.

Programmatic advertising stands at the revolutionizing end of the digital marketing landscape by automating the process of buying and selling digital ad spaces through advanced software and highly detailed algorithms that are captured by the audience’s user cookies. This innovation equips marketers with a whole set of power in effectively targeting the right audience at the optimal time, utilizing real-time data with at most accuracy. Programmatic advertising eliminates the manual negotiations and placement challenges, These advertising methods ensure precise targeting and real-time bidding, known as RTB. This method gained significant traction in the early 2010s, with intention to address the inefficiencies in the traditional ad space buying through the combinations of programs and artificial intelligence.

In this blog, we will be covering the following aspects of programmatic advertising:

1. Origins of Programmatic Advertising
2. Difference Between Programmatic and Display Ads
3. Advantages of Programmatic Advertising
4. Types of Programmatic Advertising
5. Programmatic Ad Platforms
6. Programmatic Advertising Case Studies
7. Programmatic Advertising Companies in India

The Origins of Programmatic Advertising

The cornerstone of automating the ad space buying process started to pick up its pace in the early 2010’s. This process was brought in to eliminate the ineffective methods of traditional marketing techniques such as finding the right billboard or a banner space at a perfectly visible spot, which involved high labor force utilization. Even after all these challenges, one could not bank on the ROI. This also limited the chance of optimizing the ads on the go while the ad campaign was still on. This not only increased the speed and efficiency of ad transactions but also improved the ability to target specific demographics and user behaviors resulting in more relevant and effective advertising campaigns.

Automated ad buying’s rise was fueled by the increasing availability of user data and advancements in technology, such as machine learning and artificial intelligence. These technologies allowed for more accurate predictions and adjustments, ensuring that ads were served to the most appropriate audiences based on real-time insights. As a result, automated ad buying quickly became a cornerstone of modern digital marketing, offering unprecedented efficiency, scalability, and precision in reaching potential customers.

Difference Between Programmatic and Display Ads

In the digitally revolutionized world of the internet, have you ever thought of how those ads and banners from your favorite brands appear in front of you? Well, that’s because of programmatic advertising. However, there is a possibility of getting confused between “programmatic advertising” and “display Ads”. While both go hand in hand for a successful digital ad campaign, it is necessary for you to understand the thin line between both and the purpose of each.

Here’s a breakdown to clarify:

In a performance marketing campaign, there are two aspects, One the creative part and the other is the strategy such as targeting. Similar to this are Display Ads and programmatic advertising.

Display Ads: Display ads are the creative components of the ad campaign, this includes the visual appeal and the communication used to convey the messaging of the desired campaign. Think of this as “What do you want to say to your audience?”

Programmatic Advertising: Programmatic Advertising is like the strategy component of the same campaign, this will include who needs to see your ad, where and which the ad needs to be displayed, optimizing the bids in real-time with the use of complex data and algorithms.

Advantages of Programmatic Advertising

Programmatic advertising has emerged as a powerful tool for digital marketers, offering numerous advantages over traditional methods. Here are some key benefits that make this approach a strategic choice for maximizing campaign reach and effectiveness:

1. Large-scale audience reach: Programmatic advertising platforms offer a huge advantage by connecting advertisers to a large network of publishers. This means you can reach a geographically diverse, wider, highly targeted audience. Whereas in the traditional methods we might have to adjust for a narrower audience limiting to a few website placement. This is suitable for when you want to increase your brand awareness.
2. Efficient and low-cost awareness: Programmatic Advertising uses real-time bidding for ad space. This means that the advertiser spends only when an impression is served to the desired audience, with this the advertiser can effectively allocate the marketing budget. Apart from this, the tracking and reporting can be checked in real-time enabling for continuous optimisation and cost control.
3. Real Time Data and Analysis: With the use of Programmatic advertising marketers can gain an upper hand with the use of advanced algorithms to diver deeper into audience taste, preferences and demographics. This keeps you informed and helps you create super-targeted campaigns that really reach the specific user groups. By focusing on data, you can significantly boost your campaign’s success and get the most on your ROI.
4. Ability to Use First-Party Data: Programmatic platforms allow you to combine your own customer database with wider audience targeting options. This means you can craft highly personalized campaigns that reach people who have previously shown interest in your brand or product, leading to higher conversion rates.
5. Cross-Device Campaign Strategies: These days consumers rapidly switch between devices during their buying journey, with programmatic advertising, marketers can create unified campaigns that track target audiences across desktops, tablets, and mobile phones. This ensures your brand message stays consistent and engages users across all their devices.

You may also want to read: How to Become a Digital Marketer with No Experience in 3 Steps

Types of Programmatic Advertising

Programmatic advertising offers a range of options to cater to various campaign goals and advertiser preferences. Here’s a breakdown of the most common buying methods:

1. Real time bidding: This is the most common type of programmatic buying. Advertisers participate in real-time bidding for one ad impression on a large network of publishers’ websites. Bids are subject to specific targeting criteria and budget limits. The higher bidder from a particular impression receives the right to display their advertisement. RTB provides broad reach and precise audience targeting, but requires careful campaign management and optimisation.
2. Private marketplace: A PMP is a marketplace where advertisers are invited to bid on top ad spots from a publisher. This setup provides more control when compared to real-time bidding. Advertisers get access to high-quality ad placements, and publishers enjoy more predictable revenue. These types of programmatic advertising are best suitable for campaigns that need to target specific audiences.
3. Preferred deals: These are also known as programmatic non-guaranteed deals, offer advertisers preferential access to a publisher’s ad inventory at a negotiated price (CPM). This method provides a balance between flexibility and targeting compared to programmatic guaranteed deals. While impressions aren’t guaranteed, preferred deals are ideal for campaigns seeking better ad placement and potentially reaching a more specific audience within a publisher’s inventory.
4. Programmatic Guaranteed: This method involves upfront agreements between advertisers and publishers for a set volume of impressions at a fixed price. Programmatic guaranteed offers the highest level of certainty in terms of pricing and impressions but comes with the least flexibility in targeting and real-time adjustments. This option is best suited for large-scale campaigns requiring a guaranteed level of exposure on specific publisher sites.

Programmatic Ad Platforms

Sell-Side Platforms (SSPs)

Sell-Side Platforms (SSPs) are tools used by publishers (website owners, app developers, etc.) to manage, sell, and optimize their available ad inventory. SSPs allow publishers to maximize their revenue by offering their ad space to multiple ad exchanges and demand-side platforms simultaneously. These platforms help publishers manage their inventory, set floor prices, and control who can bid on their inventory.

Examples:

• Google Ads Manager
• Pubmatic
• OpenX

Demand-Side Platforms (DSPs)

DSP ads are software used by advertisers and agencies to purchase ad impressions in an automated fashion. DSPs enable advertisers to buy across a range of publishers’ sites through ad exchanges and SSPs.

They allow advertisers to set up campaigns, define targeting parameters, bid on impressions in real time, and optimize performance based on data.

Examples:

• The Trade Desk
• Amazon DSP
• Yahoo Ad Tech

Ad Exchanges

Ad Exchanges are digital marketplaces where advertisers and publishers come together to buy and sell ad inventory. These platforms operate as open marketplaces, allowing both buyers and sellers to trade ad inventory in real time through an auction-based system.

Examples:

• Google Adx
• Amazon Publisher Service
• Magnite

You may also want to read: 9 Reasons to Choose Digital Marketing as a Career

Programmatic Ad Platform Examples

McDonald’s – Personalized “Raise Your Arches” Campaign

Raise Your Arches – A Campaign by McDonald’s was launched with an aim to increase the restaurant’s foot fall. McDonald’s used a programmatic advertising method with Dynamic Creative Optimization by targeting particular locations.

The creative ad showed personalized ad content based on the meal preferences of the local people based on the time of day, like breakfast items were shown in the morning and meals around the lunch time. This real-time ad became relevant to the audience and grabbed people’s attention, this campaign also used geofencing targeted nearby the restaurant with local messaging. Overall, the campaign successfully increased foot traffic and sales at McDonald’s restaurants by effectively engaging customers with personalized, locally relevant messages.

The Economist – Expanding Audience Reach

The Economist created a campaign to use programmatic advertising techniques like Dynamic Creative Optimisation (DCO) and contextual targeting to deliver relevant and compelling content to a wider audience. With the use of DCO The Economist showed personalized ad content depending on user behaviors and interests. For example, users interested in finance news would see advertising relevant to finance, while tech enthusiasts would see ads related to tech.

The advertisements were always relevant because of the real-time optimisation. Ads were displayed in context when they are relevant to the user’s interests, like on websites with relevant content.

The campaign was executed across multiple digital channels, by using DSP ads for optimized ad buying and targeting. customized ad content was designed for different user segments, Data integration refined targeting based on user behavior and demographic information, This increased ad relevance and effectiveness. This strategy successfully resulted in increased subscriptions and engagement for The Economist.

Programmatic Advertising Companies in India

India’s digital advertising landscape is undergoing a seismic shift, with programmatic advertising taking center stage. As more brands embrace data-driven ad placement, a new generation of agencies is emerging to meet this demand. Here are some of the leading powerhouses shaping the future of Indian advertising:

1. AdLift: A leading digital marketing agency with offices with global presence. AdLift offers a comprehensive suite of programmatic advertising solutions, including campaign strategy, execution, and real-time optimization.
2. Edelytics Digital Communications Pvt. Ltd.: Known as India’s premier growth marketing agency in the education sector, Edelytics allows marketers with programmatic advertising to help educational institutions reach their target audience effectively. Their services encompass campaign development, data-driven targeting, and performance measurement.
3. Social Beat: Specializing in performance marketing and lead generation, Social Beat provides programmatic advertising services with a focus on achieving specific campaign goals. Their team utilizes data and analytics to optimize ad delivery and ensure your campaigns generate measurable results.
4. Saffron Edge: This leading digital marketing agency specializes in innovative solutions for B2B industries. Saffron Edge offers programmatic advertising expertise to help B2B companies reach their target audience across relevant online platforms and maximize their return on investment.
5. Mplan: This digital media planning and advertising agency goes beyond basic programmatic buying. Mplan leverages programmatic advertising while incorporating thoughtful human insights to develop data-driven campaign strategies. They specialize in omnichannel campaigns, ensuring your message reaches your target audience across various platforms.

Programmatic advertising is a dynamic and exciting skill to learn, offering you a powerful toolkit for achieving advertising success for your brand. As a new digital marketer, understanding programmatic advertising principles equips you with valuable skills for navigating the ever-evolving advertising landscape.

If you’re looking to delve deeper and potentially build a career in programmatic advertising or digital marketing, consider enrolling into Kraftshala’s digital marketing course.

Frequently Asked Questions

Where can I learn programmatic ads?

You can learn about programmatic advertising through various online digital marketing courses. If you are looking for a program that gives you a well rounded digital marketing course then consider Kraftshala. This program goes beyond just training but also provides placements of greater than 4.5LPA salary package.

Is Google Ads considered programmatic?

Yes, Google Ads is one of the programmatic advertising platforms as it involves automated, real-time bidding processes to place ads across the Google Display Network.

What is the difference between programmatic advertising and digital advertising?

Programmatic advertising specifically refers to the automated, data-driven method of buying and selling ad inventory in real-time, while digital advertising encompasses all forms of online advertising, including non-automated methods.