What is programmatic advertising?

 

I’ll give you a hint: “Program” is the key term here.

 

But so is “automation.” And “data.”

 

Let’s break it down.

 

#1: Program

The “program” part of programmatic advertising is about using technology to buy and sell online ad space. Software and algorithms help you target specific audiences; automation makes it happen.

 

#2: Automation

Unlike direct advertising, programmatic skips the negotiations and hand-picked placements. Instead, you automate bids with AI-driven algorithms that make decisions in real time. The result is faster, more efficient ad buying.

 

But what informs those algorithms? You guessed it: data.

 

#3: Data

Demographics. Browsing behavior. Online activities. Information like this helps your algorithms target specific audiences. That means delivering the right ads to the right people.

 

Programmatic advertising = 

using a program to automate your advertising using highly relevant data.

 

Why it matters

There’s a lot to know about programmatic advertising. And it’s Saturday, so I’m sparing our brains the specifics.

 

What I will say is that programmatic advertising can’t travel alone. It does best when it’s got buddies such as:

• Channels: You should have other strategies and advertising channels working at the same time. Like everything AI, programmatic has its limitations.

• Budget: You have to pay for ad space on programmatic advertising platforms. But on the other hand, all those algorithms help optimize your cost per mille (CPM, where mille = 1,000 impressions).

• Strategy: While automation runs the show, it’s important to have a plan for what you want to spend where, how you’ll measure success, what kind of content you’re using in ads and more.

As you’ve probably guessed, this stuff gets tricky fast. It’s usually best to call in the experts — whether an experienced member of the marketing team or outside help.

 

What to do next

Programmatic advertising is supposed to be hands-off. But that only works if you’ve built a solid framework of data and related strategies to keep it on the rails.

 

My advice? Spend some time thinking about where you are right now. Do you know enough about your market and audience to reach them with your eyes closed? 

 

If not, your mission is clear: gather that data. After all, it’s the basis of all great marketing — programmatic or not.

 

Cheers,

Michelle