Programmatic advertising has evolved to where targeted ads are shown to specific qualified users automatically. Machine learning buys and sells digital advertising through sophisticated algorithms.
How Does Programmatic Work?
Advertisers define their audience, then set a price range they’re willing to pay. An advanced algorithm decides the value of the placement, then a real-time bidding platform selects the best bid and shows the correct customers the appropriately targeted ads. Automation maximizes the efficiency and finances of the transaction.
Advertisements can be display ads like banners, or pre-and post-roll video ads. Some of the metrics used in programmatic advertising are clicks, cost per click (CPC), and clickthrough rate. There are also cost per action (CPA), and cost per thousand impressions (CPM).
The Numbers Say It All
There is a reason that marketers in the United States went from ad spending $61 billion in 2019 to a projected $133 billion in 2023 (That will be over 90% of total digital ad spend!). The reason: It works.
Programmatic automation takes your audience and campaign information, along with your desired KPI’s and uses AI learning to spend your money in the most efficient way. In addition, the system will suggest improvements and optimization strategies as well.
Because it creates an automated advertising strategy That maximizes efficiency and targets audiences more effectively.
Programmatic advertising automatically:
• Saves time and money
• Targets audiences more precisely
• Maximizes data and automates it, and
• Reaches goals more quickly.