Have You Heard Of Programmatic Advertising? Here's What You Need To Know!

With all the buzzwords and jargon flying around the digital marketing world, it can be easy to overlook something, simply because you haven't got time to find out what it is! In this article we want to give you an overview of Programmatic Advertising, and why it could help your small business. We are going to explore how you can get started, and what tools you can use to check if your competitors are already using it!

What Exactly Is Programmatic Advertising (PA)?

The name of this process is so functional that it can put some people off! In essence, it is just the use of an algorithm (automated technology) which buys and sells media (advertising space). It can be a little hard to get your head around the complex process, but stay with us. There are 3 types of Programmatic Advertising, Adjust.com explains them perfectly:

  • Real-time bidding (RTB): Also known as open auction, RTB is when inventory prices are decided through an auction in real time. As the name suggests, this is open to any advertiser or publisher.


  • Private Marketplace (PMP): These are similar to open auctions, but PMPs have restrictions on who can participate. Only selected advertisers have access to PMPs on an invite-only basis.


  • Programmatic Direct: This is when a publisher bypasses auctions, selling media inventory at a fixed cost per mille (CPM) to an advertiser (or multiple advertisers).


You are using existing technology to seek out advertising space across multiple platforms, and securing this for your brand to use. In 'traditional media' this would be the arduous task of the office temp, emailing and ringing around companies to bid on blank space. In 2022, the algorithm works for you.



Why Should I Choose To Use PA?


Firstly, it is not as complicated as it sounds. Just as with any new process or technology, learning the way it works is the hard part... after that, you can use it to your advantage. It has been discovered that across the digital marketing industry Programmatic Advertising actually yields a greater return for SMEs and brands that sell globally. Here's why:


1) Brand building is just the start

Every business knows that the forefront of advertising starts with building your brand - getting yourself noticed in as many places as possible, for the right reasons. Programmatic Advertising is visual in nature, and allows you to use a variety of advertising formats including;


  • Native advertising – 'Advertorials'
  • Display – Static and interactive
  • Video – In-platform and CTV (connected TV)
  • Audio – In-platform (e.g., Spotify), podcast ads

As we noted earlier, there are 3 different ways you can use PA, so if you use the Programmatic Direct model (Cost Per Thousand Impressions) it means you are paying for impressions not engagement. This is great for a focussed campaign because the model looks at the reach of your advertising, not the direct response.


2) An inventory that give you opportunity

Compared to the Google Display Network (GDN), Programmatic Advertising has a wider variety of publications that you have access to. What does this mean in real terms? PA platforms can find you direct deals with publishers that GDN wouldn't even provide you access to. In other words; you can reach top-tier publications - related to your industry - that simply aren't available through Google. Of course, there are some shared publishers, but over all you have more exclusive opportunities using PA over GDN.


3) To streamline is divine...

We cannot over-state this aspect of Programmatic Advertising: it is efficient. Rather than having to take the time going through multiple ad exchanges, bidding on inventory etc etc, PA allows brands to funnel this effort into a single platform. This makes it simple for you, and a lot easier to manage your advertising campaigns.


4) Reach for the stars

In 2022 there is no doubt that reach is what gets you that essential CTR. With Programmatic Advertising the use of the algorithm changes the traditional 1:1 buying model to a more productive 1:many. According to Search Engine Journal, in 2021 alone PA spending grossed a staggering $105 billion! They predict that by next year (2023) it will hit $123 billion. This shift can be associated to many great aspects of Programmatic Advertising, but we believe that the ability to reach millions more people, through a clever algorithm, is one of the main reasons businesses are investing in PA.


You've got to be in it to win it. Simple.

Are you aware of your competitor's marketing strategies? Do they hold their cards close to their chest? Dipping your toe into Programmatic Advertising to test its viability is a great start, but it is probable that most of the companies in your sector have already invested research and people-power into getting their brands ready to use PA. Don't get left behind.


Savvy digital marketers will know that there are several tools you can use to check your competitor's spending habits. These range from paid programs such as SimilarWeb, to the free tool called MOAT. The function of the apps differs, but essentially they will all check the internet to find things such as ad spend, creatives and ad inventory that businesses are using. In this way you can get a temperature check for where your brand in on its Programmatic Advertising journey.


Where do Pear Digital fit in to the picture? You may have realised (from all of the information we've provided), that starting up your Programmatic Advertising does have a higher cost associated with it. This is because the spending model is usually billed on %. The best thing you can do to clarify any points, and get a feel for how PA can help your brand thrive, by contacting an agency like us, and having that discussion.

Most agencies already have the necessary software and expertise to break down costs for you, and to give you the assistance you need. Not only that, a digital marketing agency can offer other services in a package such as platform migration, content writing, creatives and more. This means that establishing a relationship could end up being the best marketing move you ever made.