Programmatic Advertising Explained in 5 Steps

by | Dec 14, 2018 | Digital Marketing

8 Min Read. |

Programmatic advertising has emerged as a new factor in online advertising and has changed the face of advertising by a huge extent.

In today’s time when you plan to set up a new business then the major thing that keeps striking your mind is that management of marketing and advertising. These two factors can decide the fate of any business and lead a business to sky heights and downfall as well.

These days marketing and advertising have evolved a lot when we compare it to the retro marketing styles. There were times when people were dependent on offline marketing mediums a lot but these days online marketing or digital marketing has become the primary marketing source of any business.

It has been really successful and attracted people towards it.

Reports have shown that if you are investing on Programmatic advertising the chances of growth of your business increases by 59%, which is definitely not a small number and when it comes to increment in business you can’t simply take it lightly.

As per the Programmatic Intelligence report of Magna Global, Programmatic Advertising will be 50% of all advertising by 2019.

Programmatic Advertising

Magna Global Study on Programmatic Advertising

There are a lot of people who still don’t understand the basics of programmatic advertising so here in this article we will let you know the basic details of it and all other essentials that you need to know:

What is Programmatic Advertising?

In simple words, it uses automated software or program in order to fulfil the advertising goals. Buying and selling are performed by using this automated program.

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There were times when this process involved a number of sub-processes like the proposal, tenders, negotiations (humans involved in that) and then come to the purchasing.

Programmatic advertising has simplified this process, it uses algorithms and programs in order to purchase display space.

Earlier Ad buying would have consumed a lot of time whereas programmatic advertising is a quick process and you have got more time to make your online ads better as well as optimize it. It is simply a boon for those who are already indulged in some kind of work and do not have a lot of time to manage these task.

It basically makes you more efficient and saves a lot of your time. However, you can’t guarantee that it is perfect; there are certain flaws in it which have been emerging from time to time.

Demand-side software (DSP) interfaces and algorithms are basically used to book, flight, analyze and optimize the online campaigns.

Why Programmatic Advertising India is Successful?

By now you must have understood what we call as programmatic or digital advertising and a major question might be coming to your mind is whether it is successful or not. If it succeeds then what are the reasons for its success? Let us find that out.

Programmatic advertising India is successful, simply because it’s efficient. Many experts have admitted that this is the best mode of digital marketing. Google has also predicted this in a report of it and has claimed that 60% of the total investment of digital marketing will go in favour.

According to experts earlier there was hit-or-miss campaign design which was not that effective and costly at the same time. Due to this, you don’t have to think a lot about your money expenditure on ads.

The algorithms will make sure that your money is best spent. You can just feed proper instructions in the form of program and other essential information at the same time and you are all set.

One of the major reasons behind its success is that it can perform multiple tasks at the same time as it will monitor your ad expenditure and will also focus on possible improvements. Besides all this, it will also launch your campaign.

Working of Programmatic Advertising Explained

Programmatic Advertising

How Programmatic Advertising Works-Source- Smart Insights

If your web page is having an advertising space that is already configured for programmatic advertising and the audience on your website tends to click on it, programmatic advertising starts. Let us now understand that what happens when a person clicks on that advertising space and what results he/she will get.

As someone will click on that advertising space the publisher of that page will simply lead it to the ad marketplace where the auction will happen. In this auction, various advertisers who are interested in displaying their ads to that specific customer will compete among themselves and after that, the one who will bid the most for that customer will win and their ad will be displayed to the user when the page will load.

The whole process is automated hence the maximum bidding amount is already set and the whole process takes only milliseconds to complete.

How to do Programmatic Advertising?

Since you know the essence of programmatic advertising you might be wondering about how can you do this. So let’s just find out:

(I) Understanding Your Marketplace

This is one of the most crucial steps to start your programmatic advertising. You must know what you are going to do? And what is going to be the area of advertising? You must know about your competitors and the type of ideas that you are going to face.

(II) Determine Your Goals

Once you have understood your marketplace it is the time to set your goals. You must clearly know what type of advertising awareness you are going to require. You must know why you are opting for it.

(III) Human Touch

It completely relies on algorithms and programs but in order to ensure its proper functioning, it requires a human touch. Not all platforms offer fully managed services whereas a few programs require you to work on it manually.

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(IV) Take Care of the Brand

While you are opting for programmatic advertising you must take care of one thing is that relevant ads should be displayed in exact areas. This is the major issue with programmatic advertising that it ends up displaying ads at wrong places. Your demand side backlink should stay updated. In case if you are using an agency for this purpose then ensure that they are doing the job well and keep monitoring their progress.

What is the Biggest Mistake that Brands are Making these Days in Digital Space?

One of the biggest mistake that brands make these days in the field of advertising is that they are not able to handle big data. Brands need to pick the most essential things from those big data and then use in their advertisement. So if you are planning to start the advertisement for your brand you must know which data is essential for your advertisement purpose.

While maintaining such big data the major concern that brands face is they worry about their privacy and this is where programmatic advertising comes into play. It is entirely secured and your data will remain private.

Examples of Programmatic Advertising

Below we have mentioned a few of the most successful examples of brands who used programmatic advertising for their better conversions;

(I) The Economist

programmatic Advertising

The Economist

It basically used those readers who were interested in reading its content. It learned from them about the type of stories that are being most followed by its users. Through this, it also learned about the web page preference of its users and began its programmatic advertising on those relevant web pages as well as it utilized specific cookies and other data sets as well. The company saw a huge growth in its demand. (64% for its ‘Awareness’).

(II) Turner Sport

Programmatic Advertising

Turner Sport Ads

The company took Google’s help in the process. It built its audience through AdWords before jumping into Google’s algorithm for programmatic advertising. It arranged some real-time videos of events and then launched a programmatic video marketing campaign which provided the company with a total of 7% growth within a very short interval of time.

(III) Audi

Before the launch of Q2 company opted for programmatic advertising. Audi also took Google’s help for its campaign. The company first collected the information about its users’ taste and their preference. Through this, the company earned four times higher average conversion rate.

Few Programmatic Advertising Tips

Before investing in programmatic advertising India, here are certain tips that you need to focus on;

  • Before choosing an expert or a staff make sure that you are making the investment in direction. Make sure that they have enough knowledge in the relevant field.
  • In order to make the best out of programmatic advertising rely on a website’s analytics that keeps tracking the devices and cookies. The better you understand your audience the better you can get out of your campaign.
  • You can check different insights to know which channel and devices are going to be most effective for your campaign. Use those channels only.
  • Use all the data that you are having already with you in order to get the best results.
  • You can test your different types of online ads campaigns on various platforms which measure the efficiency of your campaign. This ensures that your money does not get wasted.

In Conclusion

So, on the concluding note, I hope the way Programmatic Advertising explained here would have helped you understand key idiosyncrasies of programmatic marketing and advertising.

Download Detailed Curriculum and Get Complimentary access to Orientation Session

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If you want to learn and master Programmatic Marketing, Digital Marketing Certification Course can be a great help for you. You will learn the whole concept of hands-on projects in the most practical manner possible.

Still, have any doubts about the Programmatic form of advertising? Share with us in comments.

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  1. Bugs

    Awesome post!

    • Niharika Mahendra

      Hi Bugs,

      Thank you so much.

  2. Rahul

    Wonderful post! Really like your website.

    • Niharika Mahendra

      Hi Rahul,

      Thank you so much for the appreciation.


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