According to marketing firm, Yankelovich, the average person is exposed to around 5000 advertisements per day. With this number growing, especially since how advertisements have grown more pervasive on social media apps, catching the attention of the right viewers has grown more challenging for brands. This is where programmatic advertising comes in. This is a step away from the traditional “spray and pray” method.
What Is It, And How Does It Work?
Programmatic advertising is the automated sale and purchase of online advertising. Programmatic advertising is hired through platforms that make use of market segmentation to curate and target ads toward the required target audience. This is based on demographic, geographic, behavioral, and sociographic data. Platforms make use of machine learning algorithms that make use of the campaign information and real-time data to target individuals who are most likely to convert, whilst continually optimizing the campaign.
Why Does It Work?
The reason that programmatic advertising works so well for online advertisement is for the following reasons:
- Due to algorithms on programmatic advertising platforms collecting and analyzing data, it helps buyers and sellers make easier data-driven decisions.
- Using programmatic technology ensures that buyers do not spend more on advertising spaces than they actually need, since all efforts are targeted to specific media platforms and audiences.
- Optimized and efficient targeting is done in real-time across multiple mediums and with different tactics.
- Campaign management is simplified, as it can be managed in one platform whilst being disseminated across different platforms or mediums.
Why Is It Important?
Every day, people are bombarded with more and more online content, meaning that capturing the attention of target audiences has become that much more difficult. Ads are not only competing with each other, but with content that is curated specifically for each user. The most logical and efficient solution is to make use of a platform that mimics those algorithms found on their target mediums and tailor ad inventories to that. This helps to ensure the success of campaigns.
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