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Why You Should Consider Programmatic Advertising

January 4, 2023

Programmatic digital advertising refers to the use of software to purchase digital advertising space, rather than the traditional method of negotiating with a sales representative. It allows for real-time bidding on advertising inventory in an automated fashion, using algorithms to determine the most effective ad placements and optimize ad spend for maximum ROI.

One of the main benefits of programmatic advertising is its ability to target specific audiences. Advertisers can use data about users’ online behavior and demographics to show ads to the people most likely to be interested in them. This is in contrast to traditional forms of advertising, which often have a much broader reach but may not be as effective in terms of targeting specific audiences.

Another advantage of programmatic advertising is its efficiency. Since the process is automated, it can save advertisers time and resources that would otherwise be spent on manual ad placement and negotiation. It also allows for real-time optimization of ad campaigns, making it easier to adjust and fine-tune campaigns as needed.

There are different types of programmatic ad buying, including real-time bidding (RTB), private marketplaces, and programmatic direct. RTB involves buying and selling ad inventory through an open auction in real-time. Private marketplaces, also known as “invitation-only auctions,” are closed auctions where the inventory is typically of higher quality and is only made available to a select group of buyers. Programmatic direct involves buying ad inventory directly from a publisher outside of an auction, often through a private marketplace or a direct deal with the publisher.

Overall, programmatic digital advertising is a powerful tool for advertisers looking to target specific audiences and optimize their ad spend in a more efficient and cost-effective way.