What is Programmatic Advertising?

Programmatic advertising is the practice of using AI and machine learning to automate the sale of ad inventory within the marketing space in real time to ensure that ads reach the best customers at the best possible times. It is cost-effective and suitable for smaller scale businesses that may just be starting up, to ensure they can get their brand out there as much as possible.

Why should you use Programmatic Advertising?

This form of advertising is set to continuously grow. Take the US for example, programmatic advertising accounted for 91.1% of digital display ad spend in 2023 alone. Automation means that you can run campaigns that better adapt to the environment around them via trends that resonate with your audience just at the right time. This will free up time to focus on what matters in marketing, such as;

📈 Setting clear KPIs

🏆 Analysing campaign performance

💸 Improving strategy

🎨 Building on ad design and targeting

Unlike traditional methods, programmatic marketing combines powerful components such as user data, behavioural patterns and real-time insights to automate precise ad buying on large scales within milliseconds.

How it works

Now, let's decode how programmatic advertising works. It begins with targeting. Some publishers choose to show ads on their websites via various white spaces on the site. When a user visits a website, the hosts website that they are on leverages from data of the users activity to figure out which ad is the best match.

It then automatically calculates and places bids for that ad spot on the website, all based on the data just leveraged. The advertiser with the highest bid wins the ad auction and their ad instantly appears to the visiting user. This is in an effort to spark their interest, get them clicking and converting on the advertiser's landing page.

This is a process that can be improved via continuous optimisation so advertisers can win more auctions and show on more websites in front of their most likely users.

Trends and predictions

With the evolution of AI technology such as ChatGPT, programmatic advertising is guaranteed to make way in digital marketing. However, could the rise of privacy-first technologies disrupt this? With Google's proposed depreciation of the third-party cookie to protect user data more, it may be more difficult to identify most likely users which could lead to a potential waste of ad spend.

Speaking of the evolution of technology, virtual reality (VR) and augmented reality (AR) has gained a lot of traction over the last few years. This will impact marketing efforts as it allows advertisers to create more memorable experiences that connect brands better with their audiences.

How mira is preparing

We are well and truly in the age of AI with new technologies constantly emerging. By attending webinars, workshops and courses we’re staying in the know and keeping up to date with all adaptions. As a result, we implement the best possible marketing strategies for our clients. See for yourself how we can add value to your business! Get in touch today for a free consultation.