Programmatic Ad Services
Programmatic Advertising Services
It’s no secret that display ads, such as website banner ads, are highly effective forms of advertising, as they provide brand safety, access to premium ad inventory, and negotiation options. However, they’re not without their own unique challenges.
Display ads are often less data-driven and usually pricier, as premium inventory dictates a higher price. This is all without including the tediousness of their manual setup and a ton of back-and-forth emails and contracts with the publisher and owner of the ad space.
If only there were a way to still use display advertising with all the benefits offered by programmatic ads. Fortunately, this is where programmatic display advertising comes in. It offers the premium inventory with all the performance, scalability, and targeting offered by programmatic marketing.
In this guide, we’ll explain programmatic display advertising, how it works, and some of the benefits this type of marketing offers.
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What is Programmatic Display Advertising?
Programmatic display advertising, a subtype of programmatic advertising, is a type of digital advertising that relies on advanced technologies, such as artificial intelligence (AI) and machine learning (ML), to buy and sell digital ads in the digital ad space.
It’s important to differentiate programmatic display advertising from display ads. One is a method of acquiring ad space through automation, the other is a digital ad format. However, programmatic display advertising refers to one specific ad format: the display ad.
The same definitions and rules that apply to typical programmatic advertising also apply to programmatic display advertising. This means that the entire process disregards manual requests for proposals, quotes, and price and placement negotiations. Instead, it is equally as automated as the rest of the programmatic advertising.
Since it’s automated, programmatic ads rely on vast amounts of data to identify the most efficient ad placements, run actions, and sell digital ad impressions in real time. This means that your ads aren’t just randomly placed all over the internet; they’re strategically placed for the most impact.
The entire process is much more complex, despite the fact that it takes only a few milliseconds for it to happen.
You can read more about it in the subsequent section.
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How Does Programmatic Display Work?
While the process of buying and selling ad space is fully automated, it does require extensive initial setup. The advertisement sets up different parameters, like their target audience, preferred marketing channels, browsing behavior, and location, for buying digital ad inventory across selected channels.
Once a potential customer clicks on a certain website with available ad space (also called ad inventory) the website sends information about the user to an ad exchange, which puts the ad impression up for auction through a supply-side platform (SSP).
The demand-side platforms (DSPs) then bid on behalf of the advertiser for that particular impression based on the advertiser’s parameters. This doesn’t just happen randomly each time someone clicks a link.
Programmatic advertising relies on advanced AI and ML algorithms, as well as vast amounts of data provided by data management platforms (DMPs), to ensure that your ads are served to the right audience at the right time.
Because programmatic advertising relies on real-time bidding (RTB), you often need to outbid your competitors to secure specific ad placements. This is very cost-effective because it targets specific demographics, thus reducing wasted ad spend.
Additionally, the entire process of real-time bidding and ad space purchase takes milliseconds, making the ad instantly available to potential customers when they visit the webpage.
In summary, programmatic display ads work just like any other programmatic ad.
Top Benefits of Programmatic Display Advertising
The efficient use of time and ad spend is among the main benefits of programmatic advertising. With the ongoing development of AI and ML algorithms, that efficiency is only expected to grow and offer more value to advertisers. However, the efficient use of resources isn’t the only benefit. You’ll find a more comprehensive list of benefits below:
- Reach: Due to its reliance on large volumes of data, programmatic marketing has advanced targeting options. This allows advertisers to reach their target demographics based on a vast number of different parameters across different advertising channels. The data can also be used in retargeting campaigns that lead specific audiences to conversions.
- Efficiency at scale: Programmatic advertising is extremely cost-efficient, even at lower scales. The relatively low cost-per-mille (CPM, cost per 1,000 impressions) allows smaller businesses to implement this digital advertising method without having to burn a hole in their budget. Due to precise targeting and cost-effectiveness, even at a low scale, programmatic advertising offers a great return on investment.
- Real-time data analysis: Since both the bidding and ad-buying processes happen in real-time, advertisers receive near-real-time data analysis regarding their ads’ performance across different metrics and advertising channels. This allows you, as an advertiser, to tweak your advertising campaign and parameters further for more efficiency.
- Data management and cross-device strategies: Programmatic advertising allows you to use your own first-party data or use the data provided by a DPM. Additionally, you can use different formats, like display ads, video ads, YouTube ads, or Google ads, and redirect your potential customers to another platform, based on the customer’s initial engagement with the ad itself.
How Orchard Marketing Can Help
Orchard Marketing is a full-service digital marketing agency specializing in search engine optimization (SEO), social media advertising, programmatic online advertising, and website audience analysis.
We also provide comprehensive e-commerce marketing services for our clients and customers, thus allowing business owners to focus on growing other core areas of their business that would drive growth and sales.
Our team combines data-driven marketing strategies with creative execution to make marketing campaigns that deliver measurable results. Regardless of whether you’re looking to drive more traffic, reduce customer acquisition costs, or improve conversion rates, our advertising strategies will make sure that every dollar spent is optimized for maximum return.
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