Programmatic advertising (PA) is the hype these days. You can see it all around you. Everybody is talking about it in blogs and articles and how it is going to change the face of digital advertising. You might have even mentioned it to your friends in passing or had a conversation with them, but the strange part is the definition of ‘programmatic advertising’ has seemed to become rather elusive, don’t you think? Because when you ask someone what it really is and how it will affect your lives in the coming years, most people often have varying explanations.
A Superhero Mythology
The elusiveness of PA leads one to think up of an everyday superhero mythology, which is that nobody really understands or knows what PA precisely is. Is it an integral part of digital advertising and marketing? Can we assume it will eventually replace traditional and digital marketing? Or will it be considerably adding to CPMs? Similarly, who should be more concerned about it, the marketing agencies or the publishers? It’s like when Superman first suddenly came flying to Metropolis, and confused bystanders one by one began to make assumptions about what that thing coming towards them was, a bird or a plane?
On the other hand, people have begun to read and hear about how programmatic advertising will change the way they see digital marketing. But the thing is it isn’t yet overly clear whether or not it comes under the big league of digital marketing, particularly social media, mobile marketing, video and display advertising.
Understanding Two Important Factors
Before we plunge deeper into the subject it is important to understand these points:
The Digital Media Reality
Digital advertising is about technology across various media and social media platforms. It is also true that it still involves human involvement and interactions not only in the initial creation, but in targeting and effectively managing where ads appear and when.
Real-time bidding or (RTB) is a big part of programmatic advertising. RTB is the main technology behind the facilitation of trading platforms which are automated, in this case a ‘real-time auction’.
What Can Programmatic Advertising Allow You To Do?
At the foundation of programmatic advertising lies a technology, a technology which consists of interesting elements leading to the creation of various changes irrespective of the domain of applications. And it enables you to:
1. Finish Tasks Quickly And Cheaply – This can be a product normally available to the people at a certain price, for example, fast processors, external storage for data, etc.
2. Become Reliable and More Efficient – This requires more than just money. It entails a proper execution of technology in harmony with the company’s organizational structure and other processes.
3. Engage In A More Sophisticated Business Models – This is where you can consider new values to be formed, where a momentum can build and competitive advantage can be gained.
It is important to bear all of this in mind when trying to understand what programmatic advertising can do to change the entire digital marketing environment.