What is programmatic?

Back To The Past

If you were an advertiser, you would work with an agency, set a budget, and buy print space with an insertion order, sometimes placing advertisements based on intuition or “gut feeling.” For advertisers, this type of distribution model meant that the ad went out at exactly the same time (7am on Monday mornings) to anyone who picked up the newspaper. The effectiveness of ad spend ROI was difficult to track and knowing who exactly viewed the ads was a shot in the dark. Traditional print advertisements were the definition of “mass marketing”

 

Programmatic explained

At its core, programmatic advertising automatically connects buyers and sellers of advertising. To over simply, programmatic is like buying and selling stocks on the stock exchange, but for advertising. The Digital Marketing Institute defines the bidding process as:

 

“Programmatic ad buying, put simply, is the use of software to buy digital advertising. Whereas the traditional method includes requests for proposals, tenders, quotes and human negotiation, programmatic buying uses machines and algorithms to purchase display space.” Digital Marketing Institute

 

Programmatic buys happen quickly–in about 200 milliseconds. To see what happens when an ad “appears” on a website, take a look at the infographic below:

Source: Media Crossing

 

Programmatic ad buying leverages consumer data to target the right person at the right time. For example, behaviors such as “auto intender” can get so granular that the targeting can even go down to a specific brand, age, location, household income, gender and so on and so forth.

 

What Programmatic Means for Newspaper and Media Companies

From wall paintings to insignias to newspapers to digital, advertising is, and has always been, evolving. With the advent of digital advertising, the industry is rife with opportunity to leverage this type of marketing. AdTech and Digital Marketing are the fastest growing forms of advertising today. The world today is filled with big data and moreover, technology is connecting us more than ever before. AdTech and Digital Marketing are everywhere; We live in the Matrix. It’s on your phone, TV, computer, tablet, Amazon Alexa, smart home, smart car, and anything with the word “smart” before it.

 

Following the evolution of advertising, there has been a parallel need to track the effectiveness of advertising. The true power of programmatic is the ability to target a desired audience efficiently and effectively. Programmatic advertising offers a data driven and ROI based solution. Advertisers can optimize marketing dollars and bid appropriately, which simply means getting the right inventory when it becomes available. Newspaper and Media companies are in a unique position to take advantage of Digital Marketing as a new source of revenue with trackable metrics. The Matrix awaits.