Some of the top advertising platforms are using an automated process for the sale and purchase of advertising inventory through an online bidding system. This process is termed "programmatic advertising," which is an effective way to purchase ad impressions on websites. By using programmatic advertising, companies are able to showcase their advertisements at all the relevant places on the internet. The emergence of programmatic ad platforms has allowed small as well as big brands to connect with their audience in the most effective manner. Brands are leveraging programmatic advertising to build a strong presence across various channels such as social media, streaming platforms, mobile advertising, and so on.

The Onset of Programmatic Advertising

Programmatic advertising has existed in the advertising space for a very long time and outruns traditional display advertising by a huge margin. It is an advanced way of buying and selling ad inventory between advertisers and publishers. It is a great problem solver as today there is a close fight for getting the top advertising space on the website. The ad-serving platform has changed the world of advertising by allowing advertisers to connect with publishers in a seamless manner. Advertisers can advertise their content on several websites in a cost-effective manner.

Types of Programmatic Media Buying

Real-Time Bidding

As the name suggests, the ad inventory is bought and sold in real-time in this media buying experience. It is one of the most common ways companies re-target potential customers. If any potential buyer shows interest in a company’s products, real-time bidding is used to get the ad inventory and target their potential buyers. It has a positive impact on the sales conversion rate.

Private Marketplace

A private marketplace is a closed auction where advertisers can participate only by invitation. This is a great way to get access to premium ad inventory. This approach allows advertisers a closer look into their reach, conversion, and ad performance. These are the clear parameters for calculating the return on investment in the advertisement campaign.

Programmatic Direct

In programmatic direct, the advertiser connects directly with the publisher, taking the traditional approach. It is also called a programmatic guarantee. There is no bidding process in this type of media buying experience. There is a clear interaction between the two parties, and the inventory is sold. There are common agreeable terms on which this type of media buying is based. Usually, programmatic direct is used by big companies that have a huge budget for advertising. They use it to target their niche audience in an optimized manner. In this media buying experience, companies have control over frequency capping, audience targeting, and prices.

Preferred Deals

In preferred deals, the advertisers can select the preferred advertisement inventory at a set price before it goes into the closed auction, followed by the open auction. The prices, targeting, and other details are agreed upon by the advertisers and publishers in this type of media buying. Preferred deals are also called spot buying.

The world of advertising is using programmatic advertising to refine its process of targeting potential customers.

This is not necessarily true.