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Why is programmatic advertising attracting marketers?

Advertising is an integral part of the marketing strategy of companies wanting to position their product or service. Presently, with the technological innovations, digital marketing is now essential in this field. Programmatic marketing is especially the preferred option for companies, although there are still some of them today who do not take advantage of all the benefits it offers…

What is Programmatic Advertising?

This system is not recent, as it was created in 2000 with the implementation of Google’s AdWords campaigns. This is an automated buying method for placing ads in real time. The auction principle applies to Real Time Bidding or RTB, which involves multiple advertisers. The highest offers get their ads published and the process is completed in a thousandth of a second and is compatible with all types of digital media. Advertisements can be seen on e-commerce sites, on blog pages, in social networks, on PC or on a smartphone.

Programmatic advertising aims to allow advertisers and publishers to improve the performance of their marketing campaigns. They can benefit from significant time savings, because if they are advertisers, they do not need to contact the publisher site every time they publish their ads and negotiate prices with each of them. In addition, they can better orient them by taking into account the target audience and the highest audience rate, which will help them achieve the conversion goals they have set for themselves more quickly.

What are the Different Methods of Programmatic Shopping?

open exchange

Open Exchange or Open Action is most commonly used in programmatic advertising campaigns. This allows the advertiser to bid on maximum sites. This option remains subject to the uncertainty of very tough competition with thousands of other advertisers. On the other hand, it gives the opportunity to be able to constitute a target public taking into account the geographical parameters as well as their centers of interest, their gender or their age.

Private Market Place or PMP

The second programmatic buying method is the private market place or PMP. This solution is considered the most interesting in terms of the quality of placement of ad inserts and visibility. However, the private market is not for all advertisers. Only those who receive an invitation from the publisher through a deal ID will be able to purchase the specified ad space. This is the unique identification code for each buyer and each supplier. The selected buyers will usually be from the seller’s niche, which will significantly restrict competition. On the other hand, the cost will be higher as compared to open exchange.

direct programmatic

Just as when the buyer runs a manual advertising campaign, programmatic advertising can be direct. He can directly address a publisher in his campaign through an order form. Direct programmatic in English is called favorite buy deal, The buyer can choose the supplier to whom to entrust his campaign. The latter will be responsible for its termination and any changes that may be made will be reported to the publisher so that it can take care of them. This solution is suitable for buyers who do not have time to take care of the purchase of their advertising space.

Regardless of the method implemented, the publisher will not be required to offer its inventory on multiple platforms. It is available on a single platform, selling side platform. To access this, the buyer will go to the demand side platform to bid as per the criteria set for his campaign.

However, the programmatic mode of operation is not limited to buyer bids on an advertising space. In fact, due to DSP, advertisers are able to manage their budget better. Programmatic algorithms also give them the ability to better target their audience. This alleviates marketers’ problems in attracting the attention of potential customers who do not use a channel to make a purchase or find a service. One day they may search from social networks, another from search engines. Furthermore, 85% of them start their research from their PC, before continuing on to their smartphone.

Programmatic advertising is a major asset for companies that want to impose their presence on the Internet and take advantage of the benefits digital marketing offers, at a time when consumer habits are becoming more and more integrated into online shopping. . According to statistics, in 2021, more than 22% of the world’s population goes online for their purchases. Hence it is essential for companies to take advantage of this huge pool of potential buyers. By refining targeting as much as possible with programmatic, ads can reach the right people at the right time.

benefits of targeting

There are several types of targeting that marketers use to make their campaigns visible to people who may be interested in them.

targeting by keywords

Targeting can be done by analyzing keywords related to the topic of a website. Thus, an advertisement for an individual service company will be assigned a list of related keywords. Sites that have substantial content may host related advertising.

behavioral targeting

Targeting can be practical. When visiting certain websites, an Internet user often clicks on cookies. Thanks to tracking, these make it possible to re-target people who have already consulted one site, whatever that is, and those who consulted another with an unrelated topic. So they visited a fashion site, picked an item there, but left their shopping cart, then a few days later, they went to a site specializing in vintage cars. Although the site has no relation to the person previously visited, he/she will still receive an advertisement on the fashion item there.

contextual targeting

Contextual targeting is the solution chosen by advertisers who only want to see their ad on sites relevant to their area of ​​activity. Here, semantics is used to target the audience.

geographic targeting

Companies that wish to direct their offerings to the population of a well-defined area will opt for geographic location targeting. Thus their advertisements will be aired only in a well defined geographical area.

These various techniques are used in programmatic marketing to prevent advertisements from being too scattered so that they do not reach their actual goals. They also contribute to subsidiaries in their efforts to reach potential customers, adapting to unexpected changes in their purchasing behavior and the need for rapid response to their expectations.

From a budget point of view, it is the ideal solution to reduce costs and save time. It should be noted that traditional negotiating methods are both budget-intensive and time-consuming as the company must approach the publishers one by one and manually negotiate the terms of the publication, without it always yielding positive results. .

Programmatic advertising, the future of digital marketing

Programmatic advertising, for 9 out of 10 companies, is the new face of advertising. It will be further refined in the coming years to bring it closer to the consumers and be able to offer them a more personalized offering. However, in order to protect the privacy and personal data of Internet users, applicable regulations may be strengthened at the level of the European Economic Area and at the national level in the future.

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