An Introduction to Programmatic Advertising

Programmatic advertising is a type of digital advertising where the buying, placement, and optimization of ads is automated using software powered by algorithms and machine learning. Instead of manually negotiating with publishers or ad networks, advertisers use platforms and algorithms to purchase ad inventory in real time. This process leverages data to target specific audiences more effectively and is designed to maximize the precision of advertising campaigns.

Common Misconception: Programmatic vs. Display Ads

A common misconception in digital advertising is confusing programmatic ads with display ads. While these terms are related, they refer to different concepts. In short, display ads are a specific type of ad format (banners, images, videos), while programmatic ads are a method for buying and serving ads across targeted networks, which can include display ads.

AspectDisplay AdsProgrammatic Ads
DefinitionAd format (banners, images, videos).Method of buying and placing ads.
Buying ProcessManual; direct deals with publishers or Ad NetworksAutomated; uses software and algorithms.
TargetingBasic targeting (e.g., by website category).Advanced, data-driven targeting (e.g., user behavior, demographics).
OptimizationLimited; manual adjustments.Real-time optimization using AI and analytics.
FormatsOnly visual (banners, videos, etc.).Includes display ads but also video, native, and more.

Key Terms of Programmatic Ads

Now that we have a better understanding of display ads vs. programmatic ads, let’s dive into some of the common types of programmatic ads so you can determine the best fit for your marketing efforts. At first, the world of programmatic ads can feel like a foreign language, but similar to many other concepts, learning a few key terms can lead to a better understanding of the concept and allow you to better incorporate programmatic into your marketing strategy.

  • Real-Time Bidding (RTB): One of the most common forms, advertisers bid in real-time for impressions across websites and apps.
  • Programmatic Direct: Instead of bidding in real-time, advertisers buy specific ad space at a fixed price. This is a great option for guaranteed placements on websites and apps.
  • Ad Exchanges: Think of these as the marketplace for programmatic ads where publishers, advertisers and agencies can buy and sell ad inventory.
  • Demand-Side Platforms (DSPs): Used by advertisers to buy programmatic ads
  • Supply-Side Platforms (SSPs): Used be publishers to sell programmatic ads
  • Data Management Platforms (DMPs): Data collection to analyze and optimize ad targeting capabilities

Popular Programmatic Ad Networks

To get started using Programmatic advertising, you’ll need to choose a platform to define audiences, create ads, and connect with networks. One of the great advantages of programmatic ads is you aren’t limited to a single platform. For example, certain providers allow your ad to be published across multiple sources like Google, Meta, Yahoo & many other websites and apps. Here are some of the most common and widely-used programmatic ad networks that can be used in combination or standalone:

  • Google Ads: Google Ads integrates with Google’s massive network, including websites on the Google Display Network (GDN) and YouTube. It offers advanced targeting, Real-Time Bidding (RTB), and integration with Google Analytics for campaign tracking.
  • Meta Ads: Meta Ads (formerly Facebook Ads Manager) provides access to programmatic advertising on Facebook, Instagram, and Audience Network. It excels in social media targeting using user data.
  • Amazon DSP: Amazon’s Demand-Side Platform allows advertisers to programmatically buy ads across Amazon properties (like Amazon.com, Fire TV, and Alexa) and third-party inventory.
  • Verizon Media (Yahoo DSP): Verizon Media’s DSP, formerly known as Oath, offers access to Verizon-owned properties (Yahoo, HuffPost, TechCrunch) and a broad network of publishers.
  • AdRoll: Specializes in programmatic advertising for retargeting and customer acquisition. Known for its ease of use and small-business-friendly tools.
  • MediaMath: Offers a sophisticated DSP for enterprises looking for cross-channel programmatic advertising.

Create Your First Programmatic Campaign

Choosing the right network depends on your advertising goals, target audience, and the channels you want to reach. Many advertisers use a combination of networks for maximum reach and efficiency. Our team at webFEAT Complete is here to help you navigate the complexities of Programmatic Advertising and ensure your marketing budget is used effectively. 

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