Usually referred to as programmatic marketing or ads, programmatic advertising is a way to leverage an algorithmic-based purchase and sale of digital advertising to target specific audiences, such as segments across age, gender, social or geographic locations.
Programmatic advertising buyers basically set key parameters such as bid price, reach, specific audience data, platform and dozens of other variables to achieve the desired ROI per campaign. Buyers are algorithmically matched with inventory.
Image Source: Programmatic Advertising Infographic by ownerIQ, Inc.
Buying and Display
Programmatic media buying uses software to automate the buying and placement of media inventory using a bidding system. Programmatic advertising buyers set key parameters such as bid price, reach, specific audience data, platform and dozens of other variables. Advertisers can also tailor messages based on the expected audience and context to achieve the desired ROI per campaign. For publishers, the ads are displayed on a site based on demographic information about the current on-site user and matching ads are displayed to the user in real-time.
Programmatic advertising technology allows all standard ad tasks such as purchasing, bidding, negations and ad insertions to all be automated and completed by software and machines, without any human interaction. It is widely accepted that programmatic media buying creates a more efficient and overall cheaper advertising system.
Native Programmatic Advertising
Standard and traditional website banner ads simply do not fit today’s mobile screens. As more advertisers adopt programmatic advertising, there is a need for programmatic native ads that will fit the ad space on mobile devices and perform well within new types of publisher content that is designed for mobile users. When creating programmatic native ads there is a need to consider using different images or headlines and to better track native ad performance alongside other programmatic advertising campaigns.