Programmatic Display Advertising provides advertisers with opportunities to get their brand in front of the right audience at the right time. This audience can be targeted based on specific demographics like age, job, interests and internet searches.
To get an advert, you use intelligent software (Demand Side Platform) to bid on and purchase digital advertisements. This is an automatic process, so there is no need for the buyer to be sat at their laptop at the time of the auction – in fact, transactions are made in the time it takes to load a webpage (around 100 ms). For this reason, it is sometimes known as real-time bidding (RTB), but it’s important to note that not all programmatic is RTB.
To help you better understand this complex process, we’ve broken it down into a three-step visual:
Benefits of Programmatic Display Advertising
Programmatic Display Advertising can reap huge benefits for your brand, however the tech can be complex and advertisers have found it difficult to prove its value as this is the most difficult channel to measure. That being said, it is still a worthwhile method to attract a new audience and re-engage old customers.
1. More cost and time efficient.
As a whole, programmatic is more cost and time efficient; you can purchase ad space on a significant number of websites without having to contact them direct and the ad is sent at the exact right time, making the most efficient use of your budget. It is similar to Pay Per Click (PPC) Advertising in that you can set your maximum bid too.
For these reasons, it tends to be favoured by small businesses with small budgets – but programmatic is for everyone.
2. Ensures your campaign remains relevant.
It is beneficial that your adverts target people that you want them to target. All your impressions will be relevant and have a far higher chance of conversion, leading to a better return on your investment.
3. You can find another unexpected target demographic.
Although you might think you know your target demographic, programmatic allows you to experiment and see if there are other unexplored audience profiles that might hold value.
4. It is easier to scale.
Programmatic supports multiple ad exchanges and networks, which gives you access to more ad space on more websites all at once.
Remember that programmatic is multi-channel too, so you can target your audience on their mobiles, laptops, tablets, televisions and so on.
“Throughout the COVID-19 pandemic, Ted Baker saw a 62% increase in ROAS and a 70% increase in revenue after turning to display and discovery ads.”
“Discovery ads help us efficiently drive traffic to our website by reusing proven creative from our other campaigns and full-funnel audience targeting. We’ve seen strong performance and are excited to continue using this innovative ad format.” – Greg Turner, Senior PPC Executive at Ted Baker.
Drawbacks of Programmatic Display Advertising
There are added complications to programmatic display advertising, including ad fraud and cost, as complex pieces of software means more risk for non-experts and an expensive price tag.
However, this can all be avoided if you do your programmatic ads through experienced specialists.