Definition: Programmatic [PA]

A type of advertising where an algorithm is used to decide which ads are placed in which positions (using a real-time bidding model). Programmatic is mostly used for display advertising.

For example, an advertiser might set a maximum bid of $2 per click on any site to do with fishing, and then that advertisers ad would bid on every fishing-related ad space that came up.


What Is Programmatic?

In short, PA is a way to place your ads where your target audience is likely to see them without too much time and effort. Sounds like magic? These days, it’s just an algorithm at work.

Special software finds websites (or other mediums), which your target audience is likely to see or visit, checks if there is any free ad space, and makes a bid (which you have pre-set). If your bid wins, your ad appears on the website. It’s that easy.

PA is one of the most efficient ways to target your customers. You identify the parameters of your target audience, say how much money you are willing to pay for the ad, and click a button.

Running profitable digital marketing campaigns is far more than managing bids. Programmatic advertising allows you to reach potential clients with web display ads, radio and podcast ads, billboards, and even TV.


7 Benefits of Programmatic Advertising

1.    Improving Campaign Flexibility

As an advertiser, you get full control over your ad placement campaign via PA. This means you can adjust your marketing efforts midway.

For example, if the parameters of your target audience change, you can adjust them immediately without having to spend days reviewing your entire ad placement strategy. The program does it for you in a matter of seconds.

The ability to change the direction of your campaign as well as its funding parameters allows you to stay ahead of the competition and stimulate brand exposure.


2.    Cutting Costs

The ability to dynamically target the right medium for your ads allows you to cut costs tremendously. You can optimize your campaign with relevant and real-time data (or let the program do it for you). As a result, you are spending less money on inefficient ads.


3.    Saving Time

How much time does it take your marketing team to identify the places your target audience is likely to visit? How much more time do they spend negotiating the price for ad space? How tough is it to change the parameters midway without hindering the campaign quality?

All of the above efforts can be simplified with the assistance of PA. You explain your needs and budget limits, pay the money, and voila! The ads appear where they should without any time wasted on your part.


4.    Reducing the Risk of Error

How much guesswork does your campaign involve? When it comes to ad placement, marketing specialists have to make numerous tough decisions coupled with some guesses in order to achieve average results.

With an automated PA campaign, guesswork is out of the picture. You can be sure your audience is adequately targeted without risking time and money on misplaced ads.


5.    Maximizing the Audience Reach

Programmatic advertising allows you to achieve better brand awareness at a lower cost. By allowing the program to evaluate the advertising potential of a certain medium for your audience, you are maximizing your reach tremendously.


6.    Doing Real-Time Analysis

PA allows you to purchase digital advertising space in real-time. While buying ad space, the software also collects and analyzes data. You can get invaluable insights from the gathered information to adjust the ads accordingly while the campaign is in full swing.


7.    Analyzing Market Dynamics

When using programmatic advertising, you can get access to the data to show you changing market dynamics. You can compare traffic ratios, clicks, and conversions to make a quick analysis and react by changing your campaign setup.

Glossary Index

About Maria MacAraig

Maria has been writing articles for 5 years. She specializes in technology, business and marketing. On her free time she loves to read and go to the park with her dog.