Programmatic advertising involves using software that automates the purchasing and selling process of digital advertising space.
Instead of manually managing the ad groups & optimizing the campaign performance, the automated tools lift this work alone.
What is Programmatic Advertising?
Programmatic ads are online display advertising through software that processes businesses’ data to buy ad space online. The software accounts for the business’s target demographic & products to display the ad 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.
Despite the automated tools, we still need experienced marketers to monitor the data, the trends and tweak the technology input into the software for optimizations.
Different types of Programmatic advertising include:
- automatic guaranteed (fixed ad pricing)
- private marketplace (PMP)
- real-time bidding (RTB)
How Do Programmatic Ads Work?
To fully understand, let’s clarify some terminology.
The ad publishers manage their ad inventory & available ad space via a Supply Side Platform (SSP). A Data Management Platforms (DMP) collect internet cookie data to make informed decisions on the ad publishing process. The Demand Side Platform (DSP) is software the business uses to advertise the campaign.
Now, here are the simplified steps to explain Programmatic advertising:
- a consumer browses the internet
- the SSP analyzes the consumer cookies
- the advertiser uses the DSP program to interpret information
- the advertiser submits a bid
- the SSP selects a winning bid from all buyers
- the ad is served to the online consumer
Programmatic Display Advertising (PDA) vs. Search Engine Marketing (SEM)
Programmatic Display Advertising works via software trades across the entire inventory space available on the internet. Search Engine Marketing is paid marketing that is displayed on the search engine results pages.
Since both methods of advertising are paid for, is one better than the other?
- PDA: many platforms to display ads & various RTB options | SEM: a single system reaching the audience within the search engine network
- PDA: many targeting options & huge inventory space | SEM: works based on keywords & search engine traffic
- PDA: uses specific software & reporting tools | SEM: fully integrated with Google programs (Google Analytics, Google Tag Manager, Google Search Console, Google AdSense)
Programmatic ads are beneficial for businesses willing to reach online users outside of search engine networks. Both are viable marketing options to boost online sales.
Programmatic Display Advertising (PDA) vs. Google Display Network (GDN)
Programmatic Display Advertising & Google Display Network are both paid ad platforms to reach users with visual creatives. We differentiate as follows:
- PDA: 20+ ad exchanges | GDN: a single ad exchange
- PDA: higher costs | GDN: low-cost advertising options
- PDA: creative formatting | GDN: Google Workspace & more formatting restrictions
- PDA: increased targeting control before bidding | GDN: uses Google search history
- PDA: exchanges through PMPs | GDN: doesn’t offer exchanges through PMP
Overall, both ad platforms are similar. We recommend starting with the Google Display Network first. When having enough experience & data, expanding the reach with Programmatic ads is a great move.
Prodima’s Programmatic Advertising Services
Prodima advises your business in Programmatic advertising. This online platform can become expensive for newcomers. Businesses should only work with professionals to keep their campaigns cost-effective.
Contact a Prodima Programmatic Advertising specialist today for an open conversation about exploring your digital marketing needs!