Still Asking What Programmatic Is?
Not Anymore. 

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May 10, 2023

If you've done any online advertising for your business, you've likely heard of the term programmatic. As one of the most effective forms of media, it's gained widespread popularity, yet there's still a lot of confusion around how it works and the various targeting tactics used to reach an audience. Not anymore. Here's a simple overview of everything you need to know about programmatic advertising.   

What is programmatic advertising?

Programmatic advertising has revolutionized the way ads are bought and sold online, making the process faster, more efficient, and more targeted than ever before. To put it simply, programmatic advertising is a marketing strategy with a proven way of getting the attention of your target audience. This type of marketing uses automated technology to purchase and deliver digital ads based on first or third-party data. Programmatic advertising involves a vast network of tools and strategies that come together in real-time to deliver the right ad to the right person, at the right time, and on the right device. 

How does it work?

Programmatic ads work automatically and systematically to target your audience in real time based on a variety of factors. It uses an automated bidding process that allows advertisers to bid for ad space based on the value of each impression, ensuring that they only pay for impressions with a higher chance of conversion. This strategy has become popular for its ability to use complex algorithms and data analytics to analyze the behavior and preferences of individual users in an instant. It then places highly targeted ads that are most likely to be relevant to that particular user. This automated process takes place within milliseconds, allowing for highly efficient and precise ad targeting. Users can be targeted based on a variety of factors, therefore, there are several different tactics programmatic technology can use to reach said user 

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Programmatic Targeting Tactics:

Audience 

Persona or audience-based programmatic advertising is a method that targets users based on a more holistic set of characteristics, such as demographics, interests, and behavior, rather than the context of the webpage. It pulls data from various sources to identify and analyze target audiences. By having a bigger picture of who your audience is, businesses can create more targeted and effective advertising campaigns, leading to stronger brand awareness and increased revenue.  

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Behavioral 

Behavioral programmatic advertising targets users based on their previous online behaviors, such as their search history and website visits. It uses data from cookies, IP addresses, and other user information to build a profile and create highly personalized ad experiences geared towards each individual. By analyzing user data, behavioral programmatic advertising can predict future behaviors and tailor ads to each user's needs, leading to greater engagement and higher conversion rates.  

Geofencing 

Geofencing programmatic advertising is a technique that uses location-based targeting to deliver ads to users in specific geographic regions. Using GPS coordinates, businesses can create a "fence" around a particular location, such as a store or event. Once users enter that area, they receive targeted ads, usually through their mobile devices. This tactic is especially valuable for businesses that have a physical presence, such as retailers with storefronts, who can use it to attract customers to their stores with special deals, discounts, and promotions in real time.  

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Retargeting 

This specialized form of programmatic advertising targets individuals who have previously interacted with a business. By leveraging cookies on users' devices, businesses can track their browsing behaviors and online interactions. Once this information is obtained, advertisers can create ads tailored to products or services they’ve previously engaged with and display them across various websites. The goal is to encourage users to return to the website and complete a purchase or follow through on a call-to-action. 

Cross-device

This programmatic strategy is designed to target users across multiple devices, such as smartphones, tablets, laptops, and connected TVs. Nowadays, it’s almost impossible to find individuals who don't use some type of device, if not multiple. Users will often switch between devices, making it difficult for advertisers to reach them on all of their platforms. Cross-device programmatic advertising uses sophisticated algorithms to identify individuals across several of their devices and construct reliable profiles. This method of advertising reaches users more holistically, allowing businesses to reach the right audience via multiple channels.   

Contextual 

Contextual programmatic advertising targets users based on the context of the webpage they are visiting. It analyzes the content on a page in real time and matches it with relevant advertising campaigns. For example, if a user is reading about the latest industry trends, the algorithm will display ads for businesses that offer services within that industry. This approach is often used by advertisers who want to reach a specific audience with a particular message, as contextually targeted ads can be more effective than generic, non-targeted ads.  

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What are the benefits?

Programmatic advertising provides several benefits for businesses looking to expand their reach and improve their digital advertising ROI. One of the main benefits is the ability to precisely target consumers based on their behavior, preferences, and location, leading to higher engagement rates and improved conversion rates. Programmatic advertising is highly efficient, allowing businesses to save time and money while reaching a larger audience. With real-time data and analytics, businesses can quickly adjust their ad campaigns based on performance and ensure that their budgets are being used effectively. Additionally, programmatic advertising spurs better brand safety by avoiding inappropriate content and ensuring that ads are being placed in reputable environments. As a whole, programmatic advertising can help businesses achieve their marketing objectives by providing greater control, efficiency, and precision in their digital ad campaigns.  

 

Conclusion 

Through its data-driven approach, programmatic advertising helps businesses maximize their advertising budgets and achieve their marketing objectives in an effective and efficient way. There’s a vast number of ways to execute it, making it a versatile tool that can be adjusted to fit any business model and budget. So, ready to get started? Trust us when we say you don’t want to pass up on this growth opportunity.  

 

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