Programmatic advertising has been a buzzword in the marketing industry for quite some time. But what does programmatic actually do? And how does it differ from traditional display marketing?
Read on to learn everything you need to know to be successful at programmatic advertising.
What Is Programmatic Advertising?
Programmatic advertising uses automated technology and algorithmic tools for media buying. The term programmatic relates to the process of how ads are bought and sold in the advertising space.
Programmatic advertising differs from more traditional media buying methods in its use of automation.
It analyses many user signals to ensure that ads serve the right person, in the right place, at the right time.
Think of programmatic as the umbrella in this category, where different types of programmatic buying are categorized beneath it.
What’s The Difference Between Programmatic And Display Ads?
It’s easy to confuse display and programmatic ads, especially with the strides that Google has made in its automated and real-time bidding capabilities.
The largest difference between programmatic and display is:
- Programmatic refers to how ads are bought.
- Display refers to the format of how ads appear.
The second biggest difference between display and programmatic is the ability to buy ads across platforms.
Display ads are more commonly referred to when placing ads within one specific ad network, such as the Google Display Network.
Programmatic advertising, on the other hand, takes display media to the next level.
Multiple platforms exist for programmatic, such as sell-side platforms (SSPs) and demand-side platforms (DSPs), allowing advertisers to buy ad inventory across an open network of platforms.
With both programmatic and display, advertisers typically have control over the following:
- Bidding strategy.
- Creative and assets.
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By Brooke Osmundson
Leader of Digital Marketing at Smith Micro Software