What is Programmatic Advertising?
The use of Artificial Intelligence and machine learning to buy advertising in real-time, instead of going through traditional means like human negotiations and pre-set prices. In other words, programmatic simply refers to advertising that utilizes software and data to decide which ads to buy and how much to pay for them.
- In 2018, 80% of digital display marketing in the US was done via programmatic advertising.
- According to Zenith’s ‘Programmatic Marketing Forecasts’ report, programmatic ad spends will reach $98 billion, amounting to 68% of the global digital media ad spend by 2020.
- Companies are ready to invest 65% of their digital ad spend in programmatic in 2019. In fact, programmatic channels are rapidly becoming the most important medium for digital marketers worldwide.
How does programmatic advertising work?
Programmatic advertising is bought and sold in an automated manner. Software algorithms evaluate user analytics to help the system determine what ad content is relevant to a particular user.
Some of the data used include:
- User Behavior
- Engagement level
- Social Engagement
- Time per visit
- Marital Status
- HH Income
- Ethnicities/Language Preference
- Age Range
- Children Selects
- Net Worth
- And more
What are the benefits of programmatic advertising?
- Programmatic technology reduces human error by taking over some of the menial tasks performed by a media buyer.
- This shift allows marketers and sellers to spend more of their time planning sophisticated, strategic campaigns rather than getting bogged down in the granular details.
- Sophisticated data analysis helps buyers to identify the best use of their advertising budgets
- Programmatic analytics to determine what content is most relevant to a user at any given time.
- Advertising creative can dynamically change as factors like location, device, weather, time, and demographics shift.
- Programmatic advertising learns about customers as they roam online, enabling marketers to create specific messaging for different target audiences.
- Programmatic technology can provide real-time feedback to advertisers. This allows marketers to optimize creativity quickly as the software learns more about what is working with the campaign’s audience.
- The majority of programmatic ad buys are priced by CPM (cost per 1,000 impressions).
If your customer is searching for a Jeep Cherokee on J.D. Power and is located in their area of interest, an ad for your dealership listing the Cherokees you have in stock will show up on the web page. This is an ad example from a dealership CBC Automotive Marketing works with, Lee Chrysler Dodge Jeep Ram.