Does Programmatic Advertising Work?

All businesses are continuously researching new ways to market their brand, gain visibility, and achieve their performance-based goals. One way to reach these goals and achieve these objectives is through the use of programmatic advertising. 

However, before you use this tool, you need to understand how it works and if it will work for your business. By doing so, it will help your business in identifying whether it needs this form of advertising or not.

So, let's dive in and see how it works and if it will work for your business. 

What is programmatic advertising?

Many processes have become automated now, and the world of advertising hasn't stayed behind on this. Programmatic advertising also uses an automated process to buy and sell ad space through various platforms. 

This tool connects advertisers to publishers who then perform the ad space exchange. It also uses artificial intelligence (AI) to automate every process, including buying, selling, and bidding on the ad space. 

This use of AI makes the process much smoother and quicker, meaning everything is executed within a few seconds. 

How It Works

The AI analyzes the behaviors of an audience in real-time, which means the data is accurate and precise. This happens through various platforms such as:

• Data Management Platforms (DMP): This allows businesses to gather and manage data for ad purposes.

• Demand Side Platforms (DSP): Through these, you can purchase ad space through exchanges such as Google Ad Manager that has a list of ad space from various publishers.

• Supply Side Platforms (SSP): This gives publishers the tools to manage and offer diverse ad space to businesses or anyone that interested.

These platforms work together to facilitate the process between advertisers and publishers, making the exchange a seamless process. This is how the process works in a matter of a few milliseconds:

• The publisher first sends dimensions of ad space to SSP.

• SSP reads the user's cookies to serve the most relevant ad.

• DSP values impression and submits a bid.

• SSP picks the winning bid.

• The ad is then served to the consumer.

Image Credit: Media Shark

Now that you know how it works let's discuss if it works. 

Does programmatic advertising work?

To name a few, programmatic has worked very well for Google and Kellogg's. Research shows that Kellogg's were able to understand and gather data on consumers' behaviors and preferences more accurately, which led to more than a three times increase in better targeting across all platforms. It also increased their viewability rate by over 70%!

On the other hand, Google also used various forms of programmatic advertising, and they reached people three times more frequently and reached 30% more people in total. That is the power of programmatic advertising, and it works because it provides data and insights that you could never get before. 

Even Holiday Inn has used programmatic advertising and seen promising results. Gradually, many businesses are implementing programmatic advertising into their business, and big brands have been using it. This is because it improves your KPI's campaign and boosts your overall ROI, which is why it is a great tool to utilize.

Image Credit: AcuityAds

Final Words 

Learn about your audience and then target them in the right way so your business can be successful. Technology is making more and more tools available to us, so why not take advantage of them to be successful? 

If you aren't sure about how programmatic advertising can support your business, contact our digital marketing agency and let's gets started.