Programmatic advertising describes a way to buy ad space online through an automated exchange, linking publishers to advertisers and through which publishers bid for ad space. This method uses artificial intelligent technology (more on that later) to determine the top placements for each keyword in an AdWords account. Once the ad with the highest potential for earning a click has been placed, the publisher that bought that click has the choice of displaying the ad again (with the matching Google ads) or having the advertiser pay them when someone clicks on that ad. In essence, the publisher is getting paid for every targeted action resulting in a revenue share. In short, this is a way for a publisher to earn some money without making a lot of traditional advertisements.
The benefits of programmatic advertising aren’t all that different from the other advertising methods we’ve previously discussed. However, one thing it does have is a significantly higher Return On Investment (ROI), especially when compared to PPC or pay per click. It’s a great idea to optimize advertising because the more people who are exposed to your advertisements, the more you end up paying for clicks but the more people will actually click on them and visit your website or other sites so in effect, the more impressions you get and the more money you end up making. That in turn leads to more revenue.
There are two different types of programs used in programmatic advertising: Advertiser driven and publisher driven. In an advertiser-driven campaign, advertisers are only allowed to bid against each other for ad space. Publishers are not allowed to advertise against each other; they only compete against advertisers for the ad space they’re allowed to sell. Since advertisers are trying to match the highest bids, they end up getting most of the ad revenue as opposed to the publishers who only get 1% of the ad revenues.
Programmatic technology offers publishers a way to effectively manage their ad campaigns through one simple set of tools: the programmatic control panel. This handy tool allows marketers to manage their ad campaigns across all platforms with a few clicks of the mouse. There are many more features of the programmatic technology which make managing even more straightforward. Once marketers have decided on the campaign parameters they want to run, they can then select the campaigns they’d like to run on a regular basis.
Programmatic advertising lets you target your audience based on location, behavioral attributes and the keywords used to construct your campaign. In short, it’s really smart targeting of your advertisements. All the campaign management is taken out of your hands and managed for you so you can focus on running your business and creating new products. This is also an extremely cost-effective form of advertising. Typically, programmatic advertising programs cost about 10 times less than traditional pay-per-click (PPC) campaigns. That kind of cost saving is great for small marketers and upstart companies that may not have the budget for expensive ads.
Most of the time, a programmatic advertising campaign is implemented by website owners who need to increase their audience size. They have a lot of information to convey, such as the product and price, but they don’t have the budget for pay per click (PPC) advertising. Instead, they’ll use programs such as Ad Words or Bidvertiser to drive traffic to their websites. As long as their content is compelling enough and their audiences are targeted, they’ll find a lot of success by using artificial intelligence (AI) to perform targeted pay-per-click (PPC) advertising.