Programmatic advertising refers to the automatic process associated with purchasing and selling of digital advertising space. Because of programmatic advertising, the process has become more efficient and effective. Programmatically, channels and formats are accessed and programmatic advertising platforms are used to build up ad database and inventory.
Significance of Using Programmatic Advertising
Programmatic advertising is expected to continue growing. In the United States, it is through programmatic technology, about 90% of the digital display advertising spending is believed to have been transacted in 2020. In 2021, the programmatic spending is believed that it will grow by 1.5% in spite of problems that has been brought about by pandemic.
Before invention of programmatic advertising, people manually ordered, set up, and reported on ads. Advertisers and publishers can find it difficult to manage ad space, as well as manually negotiate the sales’ sale and purchase; they regarded this to be a time consuming. On the other hand, programmatic advertising is perceived to be a faster and smarter alternative to the traditional or manual digital advertising.
Significance of Programmatic Advertising to Advertisers
Before inventing programmatic advertising, accessing ad inventory was difficult for the advertisers. This suggested that about 60% of the ad space for publisher were not sold. Programing advertising assists in solving the problem by ensuring that ad space for publisher is understood, in addition to purchasing of ad inventory. Some of the significance of programmatic advertising to advertisers incorporate:
Scaling: advertisers are in a position of reaching large audiences by buying ad space from the available inventories, instead of being limited like the way they have may have been before.
Targeting capabilities: when advertisers have superior targeting, their budgets can be in such a way that allow them use better spend and use money more effectively.
Efficiency: apart from the process being streamlined, more significant ads can be served through targeting. When an advertiser can access several publishers, it means that the advertiser will be in a position of getting, on his investment, a better return, as the publisher is maximizing his revenue as well.
Real-time flexibility: it is through this that advertisers are in a position of making real-time adjustment to advertisements based on their impressions, in addition to taking advantage of several targeting criteria.
Significance of Programmatic Advertising to Publishers
When right tools are used, programmatic advertising can protect publishers, as their readers are kept in mind. Moreover, the host ads are always kept relevant to the publishers. They will also be in a position of accessing deals, which can bring and maximize revenues through various bidding types. Some of the benefits that publishers will enjoy include:
Simplicity: selling advertising space will be simple. Using automation tools, optimizing ad sales will be simple for the publishers.
Communication: with advertisers, publishers will be communicating and collaborating with ease.
Relevancy: whenever a visitor is on the publisher’s website, he will see ads that are relevant to him since he is part of the target audience of the advertiser. It is through programmatic advertising accessing several publishers can be easy for you.
Efficiency: it is responsible for lowering costs and raising publisher margins; hence, assisting publishers to earn more from the ad space.