The world of digital marketing is always changing as new technologies and more efficient automation continue to offer the next big thing when it comes to digital marketing. Programmatic advertising is a method that allows your ads to reach the right demographics through automation, and it is a great example of how far digital advertising has come in recent years.
However, despite all the advantages it has to offer, display ads (image and GIF ad banners on websites) are still present and widely used in modern-day marketing. If programmatic ads are so great, how come display ads, the relic from the 56k modem era, are still present?
In this guide, we’ll cover programmatic vs display ads, their definitions, differences, and which one is better for your advertising strategy.
What Are Programmatic Ads?
Programmatic advertising refers to the use of automated systems and technologies, often powered by AI and machine learning, to buy and sell digital ad inventory in the digital ad space. As a result, 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.
Unlike traditional methods, such as display ads, which include requests for proposals and plenty of price and placement negotiation, programmatic advertising is completely automated. It takes place across different advertising media, such as web, smartphones, app ad placements, videos, and social media.
Each time a potential customer clicks on a certain link, the website publisher puts the ad impression up for real-time bidding through a supply-side platform (SSP). The demand-side platform (DSP) bids on behalf of the advertiser for that impression based on the advertiser’s parameters.
While this may sound like random bidding, programmatic ads rely on vast amounts of data provided by the management platform, which ensures that your ads are served to the right potential customer, in the right place, and at the right time.
This is a very cost-effective form of digital marketing, as it doesn’t just throw your ads out into the digital ether in hopes that they will attract potential customers. Instead, programmatic ads are strategically positioned for the most impact, due to faster and more efficient media buying, highly granular targeting and retargeting, and real-time optimizations.
It’s important to note that these are types of programmatic advertising and shouldn’t be confused with the types of programmatic advertising platforms, such as ad exchanges, ad networks, and ad servers.
What Are Display Ads?
Unlike programmatic ads, which rely on automation, display advertising refers to visually based digital advertising placed on ad space that’s bought directly from a specific publisher. These ads come in many different formats, such as image banner ads, which are served to target audiences via display ad networks.
These are mostly used to attract attention, promote a product or service, or spread brand awareness. As a result, they’re mostly placed on news sites, blogs, forums, mobile apps, and social media feeds.
Display ad buying is typically done through deals with publishers through direct buys. This often involves plenty of back-and-forth regarding the ad placement, pricing, and duration. Due to their manual nature, these ads don’t actually rely on massive data sets, which makes precise targeting and real-time optimizations of your online advertising strategy more limited.
However, display ads are more commonly integrated into programmatic advertising platforms such as ad exchanges and Google Ads for convenience, as it simplifies implementation. Additionally, while they’re not as targeted or efficient as programmatic ad buying, display ads tend to offer more creative flex and higher visibility across a wider range of advertising channels.
What Is the Difference Between Programmatic and Display Ads?
Programmatic and display advertising are closely related types of digital marketing, and they’re often used together within the same digital marketing strategy. However, these are not the same, and there are some notable differences between the two.
The main difference between programmatic and display ads lies in how these ad types are purchased and delivered, as well as their format. However, because they refer to two different aspects of advertising, the two categories can overlap.
Programmatic advertising refers to the method used to buy and place digital ads, which is almost completely automated and relies on algorithms, real-time bidding (RTB), and data-driven targeting.
On the other hand, display ads mostly refer to different ad formats, such as static banners, interactive media, or video ads. They’re specifically designed to engage the audience, and can be purchased through a number of different ways, including direct deals with ad publishers.
These two categories often overlap in different ways. Display ad buying can be somewhat automated or done through programmatic buying, and some programmatic ads feature display ads.
Programmatic vs. Display Ads: Which is Better?
Both programmatic and display advertising are essential tools in any modern ad campaign, but they ultimately serve different functions and cater to different needs due to their inherent differences.
It’s safe to say that the question of superiority comes down to your ad campaign’s specific goals and requirements. Programmatic campaigns leverage automation to come on top as the highest bidder for a particular ad space. They’re incredibly precise and target only specific audiences, with an incredibly wide reach across different platforms.
Programmatic advertising is a perfect choice for campaigns that prioritize reach, personalization, and return-on-investment. However, it’s limited when it comes to engagement, as its automated nature may disrupt the user experience.
While often a part of a programmatic approach, display advertising offers brands more control over how and where their ads are displayed, on which website, and during what time. This method is great for campaigns that prioritize brand safety, prestige, and context, which is why they’re mostly used for sponsorships or high-visibility product launches.
While both programmatic and display ads have unique advantages, drawbacks, and applications, most successful brands use a hybrid approach when it comes to digital marketing, and often combine the two to leverage the best of both worlds.
Summary
Comparing programmatic and display ads is are completely separate advertisement categories that often overlap in their advantages, and they both have their place in the modern advertiser’s arsenal. If you want to learn more, don’t hesitate to contact Orchard Marketing; we understand the importance of these ad categories, how they benefit our clients, and how to implement them into an effective advertising strategy.
