Approximately 80-85% of websites and apps make their money the same way. They allow ads on their platform. There are now plenty of different advertising methods for them to choose from.
Programmatic display ads are a growing trend, accounting for 82.5% of digital ad spending. They increase efficiency, allowing businesses to purchase valuable ad space within seconds.
Programmatic advertising platforms are full of data. They analyze where customers are clicking, scanning sites from various platforms. It can produce advertisements that hide in plain sight among the content already present on a website.
Read our handy guide to discover how programmatic advertising works, what it can do for your business, and how to use it.
How Programmatic Display Advertising Works
Programmatic advertising maintains the positive elements of traditional digital advertising. It has the same visual appeal and an equally wide reach. It also adds sophisticated technology to improve the process.
Programmatic advertising platforms are also known as Demand Side Platforms — or DSPs. They allow companies to quickly bid on ad space at low prices.
RTB or real-time bidding is only one method of purchasing programmatic display ads. Another option is programmatic direct. This allows advertisers to purchase from specific sites in advance.
Programmatic advertising platforms are not connected to only one network, meaning they have access to a larger range of sites. They are also capable of analyzing hordes of data at once. They use this information to provide analytics that help determine where to place the ad to attract the most customers.
Programmatic display ads are growing in popularity. The process is more efficient but as effective as more traditional methods.
Computers handle various steps, such as finding the best sites to launch on. This gives advertisers more time to craft the best possible campaigns.
How Programmatic Advertising Is Different
Programmatic advertising resembles its traditional predecessors but is different in various ways. Knowing where it came from and how it has improved upon previous processes is an important part of understanding how it works.
Display marketing or display advertising has been around on the internet since the mid-'90s. There are various available platforms including the Google Display Network, Yahoo, and Bing. These ads come in the form of banners of various sizes placed on websites customers visit.
Programmatic advertising platforms produce ads in a different way. They use automated ad exchanges to speed up the process. Advertisers can send campaigns out quickly to sites they know their customers will visit.
Display and programmatic advertising differ in the type of content they create. Banner ads are the realm of display ads, while native ads are more common in programmatic systems.
Programmatic banner ads are still used and look like their traditional counterparts. The issue is that they make it obvious that the site is trying to sell something.
Native ads resemble the content already present on the website. They are growing in popularity due to their increased click rate.