There is a lot of talk going around about the benefits of programmatic advertising in the digital market. While the term may sound a bit techie, you can easily incorporate it into your brand's advertising media planning strategy after learning about the fundamentals.
Programmatic advertising
Brands can nowadays use multiple software to buy advertisements on digital platforms. This type of advertising is based on data analysis and complex algorithms. It removes the long-winded conventional approach comprising of bidding, giving proposals, or lengthy negotiations. This machine/software-driven process is called programmatic advertising.
How does it work?
The process is still not fully automated. The software tracks and analyzes data with algorithms for computation. Programmatic buying provides brands with better ad spaces that can be more effective for displaying promotional content.
A lot of planning is still needed regarding the content of advertisements, target audience, suitable online platforms, etc. Still, programmatic advertising allows businesses and companies to relax a little when it comes to choosing the best digital space to show their ads.
Popularity
The popularity of programmatic buying is because the medium is truly efficient in executing its duties. The number of businesses and marketers using this process has steadily increased over the past couple of years. More businesses and companies are investing in programmatic advertising for their brand promotion. Advertisements displayed through programmatic buying have increased the exposure of brands, bringing in more sales of their products. Many studies show that the number of expenditure brands do in this advertising has more than doubled in the past five years.
Drawbacks
While it is somewhat efficient and powerful, there are also flaws present in the system. As the process is mostly automated, brands and businesses sometimes have no power over where their promotional ads are displayed. In 2017, there was massive outrage in America when ads of famous brands started popping out with racist, extremist, and hate-filled online content. Many leading advertising and media agencies had to jump in to solve the problem as major companies started pulling out their advertisements from these platforms.
We can see that while programmatic advertising has become a popular tool of digital marketing, the process has flaws and requires more work to get better in the future.