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What Is Programmatic Advertising?

Some experts in the industry agree that programmatic advertising is growing more successful by the day, and has the ability to expand into an industry worth tens of billions of dollars by the time we reach 2020. However, in spite of these impressive numbers, a wide number of marketers remain to be confused about what programmatic advertising actually is, and how they can use it in their own strategies.

At a basic level, a good way to describe programmatic marketing is as a way of targeting the type of audience you want to show your advertising to. This could mean reaching out to certain segments across a number of demographics, including social standing, gender, age, and even geographic location. Similarly to paid search, with programmatic advertising, you can adjust the way your advertisements appear according to frequency and time of day, as well as deciding where you'd like your ads to appear. The point of programmatic advertising is that you're only paying for ads that you know will be highly effective - delivered to the right audience at the right time.

In programmatic media buying, you purchase advertising space using software (like ExactDrive's advertising platform) that automates the optimization, placement, and purchase of media inventory through a bidding system. Automating the system allows for the matter to be done in real-time without relying on manual trading and insertions. In other words, it saves your business time, while still allowing you to tailor a specific creative or message to the right person, in the right context, at the right time. The method should therefore deliver a far more personalized and precise form of media, resulting in an effectively targeted campaign, and a less "spray and pray" traditional approach to digital advertising.