Digital Marketing | What Is Programmatic Advertising?

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The digital marketing landscape has evolved in the past two decades. Different channels, such as social media, emails, and search engines, continue to provide marketers with new ways to engage with consumers. All of these can be overwhelming, which is why you may want to consider investing in programmatic advertising.


WHAT IS PROGRAMMATIC ADVERTISING?

Programmatic advertising or ad buying is one of the most versatile methods for engaging with consumers. The possibilities are endless with programmatic advertising, as you can use artificial intelligence (AI) and machine learning to purchase real-time ads.

 

By using software to buy ads, you can automate a significant portion of the advertising process. Instead of manually preparing your ads, you have more time to spend on optimisation and planning.

 

Programmatic advertising is an effective digital marketing tool in Singapore, and it can strengthen your efforts to connect with your target audience. Most importantly, it is a successful advertising method, thanks to its efficiency in helping brands meet specific objectives, such as raising brand awareness and promoting products or services. 


HOW DOES PROGRAMMATIC ADVERTISING WORK?

how programmatic advertising works

 

With the combination of software and machine learning, programmatic advertising allows you to find a specific audience for your ads based on demographics, such as gender, age, location, and many more. 

 

Thanks to real-time bidding (RTB), you can optimise and manage ads to launch campaigns and prioritise networks. Real-time bidding lets advertisers bid on an impression. If won, the advertiser’s ad will instantly appear on the publisher’s site.

 

Real-time bidding is one of the first instances of programmatic advertising. It works by sending a request to an ad exchange with website and visitor information.

 

For instance, imagine yourself visiting an online store that sells shoes. As you leave the website without purchasing, you see ads everywhere on the Internet showing the very same shoes. Real-time bidding helps in sharing these ads by placing them in front of you.

 

It is quicker, more efficient, and allows advertisers to reach a specific audience. For such reasons, it is not surprising that programmatic ads have become more commonplace in today’s world of digital marketing.

 

However, real-time bidding is just one of the many methods of automating your programmatic ads. Other parts of programmatic advertising include programmatic direct, which lets you use a fixed-price agreement, and private exchange buying (PMP), an auction where pre-negotiated deals occur.


PROGRAMMATIC ADVERTISING: THINGS TO CONSIDER

Programmatic advertising is not perfect. It offers many advantages for advertisers to engage with a specific audience, but there are a few things to consider before using programmatic advertising.

 

The first essential factor to consider is the lack of human control. Each digital marketing agency will generate different results since programmatic advertising requires highly-trained specialists to launch an effective campaign. In that case, consider partnering with an experienced digital marketing agency that specialises in programmatic ad buying.

 

Another thing to consider is the risk of fraud. Online traffic fraud is a prevalent issue in the advertising industry. The problem is that advertisers pay for viewers that come from publishers using bots. These bots are not real, thus causing advertisers to pay for nothing.

The good news is that there are a few ways to combat online traffic fraud. Use verified digital marketing tools from certified third-party providers to ensure that your results are authentic and transparent. Most importantly, remember to monitor your key performance indicators (KPI) now and then. Doing so should help you determine the accuracy of your campaign performance.


FINAL REMARKS

Programmatic advertising is essential for digital marketing services in Singapore, thanks to artificial intelligence and machine learning. If you want to incorporate programmatic ad buying into your business strategies, consider outsourcing your services to a digital marketing agency.

For trusted digital marketing services, contact our SEO company at 6690 4049.

 

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