Programmatic Advertising involves using software that automates the purchasing and selling process of digital advertising space. Contemporary society currently lives in a virtual world, significantly strengthened following the COVID pandemic. From events, news, shopping, entertainment, and even schooling are common and normalized.
Successful businesses choose programmatic audiences to engage effectively with their relevant audience to increase brand identity, generate new leads and increase revenue. 70% of Vietnam’s population in 2025 is expected to be doing e-commerce translation. Companies that are looking to expand their business and remain relevant online work with professional Digital Marketing Agencies to reap the many benefits of Programmatic Advertising, such as its efficiency and flexibility.
What is Programmatic Advertising?
Programmatic Advertising is online display advertising through software or application that processes businesses’ data to buy ad space online. The software accounts for the business’s target demographic and products to program the ad to be displayed on the internet where deemed valuable. Unlike traditional advertising space, such as a company dealing directly with another website to strike up a deal for advertising space, Programmatic Advertising uses progressive technology to manage the “deal” directly.
Although the superior software is efficient, experienced marketers and digital marketing consultants are still crucial to monitor the data, its trends and tweak the technology input into the software for improvements and changes. Different Types of Programmatic Advertising include:
- Automatic Guaranteed: ad pricing is fixed, and the ad inventory space has been reserved in advance to be programmed at an allotted time between the seller and the buyer. This allows businesses to redirect their focus to other areas of their business.
- Private Marketplace (PMP): Private Marketplaces are exclusive ad inventory trading spaces. The PMP is limited to businesses for the seller to control where the ads will operate.
- Real-Time Bidding (RTB): This is the most common form of programmatic advertising. RTB is an open marketplace whereby all bidders (businesses looking to promote their campaigns) can put forward their offers here and now.
When did Programmatic Advertising begin?
Programmatic Advertising began in the USA when mobile phone company AT&T displayed a banner advertisement on Hotwire.com in 1994. By 1996, the ad server ColoubleClich was created, and online ads began.
Programmatic Display Advertising (PDA) vs. Search Engine Marketing (SEM)
While Programmatic Advertising is completed via software trades across the entire inventory space available on the internet, Search Engine Marketing is paid marketing that involves advertisements to be displayed in the search engine results pages. Since both methods of advertising are paid for, is one better than the other? Depending on the nature of a business’s marketing strategy, one or both advertising methods may be necessary.
Differences between Programmatic Display Advertising and Search Engine Marketing
Programmatic Display Advertising and Search Engine Marketing are both paid forms of media advertising. However, there are differentiating factors such as:
- In PDA, there are many platforms to display on and various RTB exchange options. SEM is already integrated into a single system that uses the Search Engine’s features to consolidate the exchange.
- PDA allows businesses to access more targeting options because the inventory space is more extensive. In contrast, SEM is more competitive for areas to reach your target audience because search engines like Google have so much traffic.
- PDA reaches a growing audience on relevant sites related to a business’s products and services. SEM is limited as it only allows companies to reach an audience within the search engine’s network.
- SEM provides businesses with data and informational reports through programs such as Google analytics. Accounts can also be managed through PDA software, although reports may not be sufficiently connected to Google’s Display & Video 360 and Google AdSense programs.
Programmatic Advertising is a beneficial channel for businesses wanting to reach online users outside of search engine networks, whereas Search Engine Marketing holds its own space. Both are viable marketing options. Through the advisory of a professional digital marketing agency, a Programmatic Advertising specialist can advise your business and prepare you for the potential outcome in reach and profit.
Programmatic Display Advertising (PDA) vs. Google Display Network (GDN)
Although both PDA and GDN are paid advertising forms to reach a business’s ideal demographic and have placement options (mobile applications and domains), both platforms differ and may be helpful or harmful to your advertising campaign.
Differences between PDA and Google Display Network
- GDN offers a single ad exchange, compared to PDA, which has 20+ ad exchanges
- PDA costs vary and can be relatively high; GDN offers low-cost advertising options
- Advertising through the GDN integrates a business’s ad campaign with Google Workspace; PDA is conducted through Creative Formatting.
- PDA offers buyers increased targeting control before bidding; GDN targets ads through a user’s Google’s search history
- GDNs don’t offer exchanges through a Private Market Place (PMP); PDA can be exchanged through PMPs
- PDA offers Creative Formatting depending on the software and ad type; GDN has formatting restrictions
PDA and GDN have similarities and differences, as mentioned above. Depending on your business objective and budget, one form of advertising may be more useful to pushing your campaign than the other. Regardless, it is crucial that your business’s advertising is concise and appealing to your audiences. Digital Marketing Advertising specialists are able to assess your advertising efforts to provide you with the right advice to create a powerful advertising strategy.
How does Programmatic Advertising work?
Programmatic Companies gather analytical reports of audience data and trends to target demographics precisely. Softwares use Artificial Intelligence to assess online users’ behaviors, allowing for real-time campaigning more likely to convert research into revenue.
Businesses looking to invest in Programmatic Advertising must have a digital campaign ready-to-go for submission. Data Management Platforms (DMP) collect substantial internet amounts of cookie data so that the marketer or seller can make informed decisions throughout the publishing process.
An example of simple Programmatic Advertising:
- As a consumer browses the internet, publishers manage their ad inventory and available space via a Supply Side Platform (SSP). SSP is the technology that enables media owners to manage their inventory to fill with ads.
- The SSP gathers the consumer’s user cookies to determine which ad is most relevant to the viewer.
- A Demand Side Platform (DSP) is software used by businesses to advertise their campaign. Buyers use the DSP program to interpret information and submit a bid.
- SSP selects a winning bid from a buyer to publish.
- The Ad is served to an online user that is within your business’s target audience.
Programmatic Ad Platforms
Programmatic Advertising is conducted through programmatic advertising platforms that allow sellers to automate and manage their digital advertising campaigns. Over 67 million people in Vietnam use the internet, hence the importance of ensuring the right Programmatic Ad Platform is selected to best reach a target audience. A good Programmatic Advertising Platform should automate ad placement, media buying, campaign optimization, performance tracking, and editing tools to design campaign creatives.
Programmatic Ad Platforms worth exploring such as:
- Ants: “Empowering the Digital Media: Ad Exchange, Ad Service, Analytics”
- SmartyAds: “World’s most powerful solutions for advertising and monetization”
- Simpli.Fi: “The Mobile, Video, Display & Native Platform Built for Localized Programmatic”
- TubeMogul: “TubeMogul’s programmatic advertising software enables brands and agencies to plan, buy, measure and optimize their global advertising”
- PubMatic: “The Future of Programmatic Delivered”
- MediaMath: “MediaMath delivers the most responsive, accountable and performant advertising technology for brands to buy addressable media”
Prodima’s Programmatic Advertising Services
Prodima’s team of digital marketing experts work together to advise your business in Programmatic Advertising. We work cohesively to ensure that we deliver a Programmatic Advertising strategy that aligns with your business’s visions, satisfies your audience, and contributes to a great ROI.
Prodima provides a variety of Programmatic Advertising services, including:
- Assigned project manager
- Complete Advertising audit
- Demographic and audience targeting (geo-location, age range, gender, interest, education level, related website interests, behavior targeting, mobile device targeting)
- Bidding scheduling (days an hours of the week)
- Campaign development and strategizing
- B2B Targeting (positions, titles, industry, company type and size, location)
- Brand positioning research and insights
- Network researching
- Data analysis and results reporting
- Ad rotation for conversion
- Mobile device and mobile carrier targeting
- Strategic bid management
- Ad creative and content creation
- Remarketing plan and implementation
- And more!
Contact a Prodima Programmatic Advertising specialist today for an open conversation about exploring your digital marketing needs!