Programmatic buying is one of the most talked about topics in the world of digital marketing. Before I dive into the importance of programmatic ad buying and its positive impact on your business’ future, let me explain to you what it exactly is. In a nutshell, programmatic buying is the use of real time software based systems that automate and enhance the purchase and delivery of targeted ads to consumers.1 Programmatic buying enables ad buyers to show ads across the web. It is growing because it makes ad transactions more effective and efficient.
Although programmatic buying is a popular topic, it’s not predicted to replace the human element of ad buying. Programmatic buying allows marketers to receive the data consumers leave behind online. Data stored offline benefits marketers by allowing them to target online media sites.2 Programmatic buying allows advertisers to program their media buys with a target audience in mind. This provides marketers with more time and funds to focus on building creative content that is relevant and entertaining.
Programmatic buying can have significant cost benefits for your business. Data-based targeting approaches cost roughly half as much as content-based targeting. While data-based targeting is more specific than a content approach, it’s surprisingly less costly.3 Although programmatic buying can be leveraged as a more cost effective way of online advertising, direct sales is not dead. Currently, there is no existing substitute for actual salespeople.
In short, programmatic buying encompasses online display advertising that is aggregated and optimized through software interfaces and algorithms.3 Programmatic buying allows marketers to engage customer interactions across multiple channels into one interface.2 Online display advertising is moving toward programmatic due to its workflow and performance. Although programmatic suggests little or no human intervention, it can only do so much and will never replace direct sales.
“Define-It- What is Programmatic Buying?” AdExchanger ICAL. 18 November 2012. Web. Date Accessed: 03 June 2016.
“Programmatic Ad Buying: A Tactical Primer.” Marketing Land. 18 October 2013. Web. Date Accessed: 03 June 2016.
“10 Things You Need to Know Now About Programmatic Buying.” Advertising Age News RSS. Web. Date Accessed: 03 June 2016.