Programmatic Advertising: Idea, Advantages, Disadvantages

An advertising campaign is the only way you can make your audience know about your existence and the products and services you specialize in. Creating advertisement isn’t that much of a hard task as it is to understand the correct place to channelize the crafted ads.

What is programmatic advertising?

An automated marketing approach used by the businesses to purchase and sell the digital ad space for promotion of their brand and its products and services. The ad spaces available can be website, application etc.

In this blog we will understand advantages and disadvantages of using programmatic platforms to bid on AD impressions in real-time.

Advantages of programmatic advertising

Precision Targeting

Programmatic enables advertisers to target their audience by various search parameters such as demographics, interests, online-activity, device type, also location. Such Laser-point targeting makes sure that advertisements are delivered to the correct individuals at the correct period.

Real-time Optimization

Real time targets can be made to shift depending on the performance. When an ad is underperforming, you can adjust targeting, creative or bid strategy briefly to save money other than improving ROI.

Scale Efficiency

The manual negotiation and insertion orders are a thing of the past. The result of introduction of programmatic is that marketers can control thousands of ad impressions at a time across platforms.

Cost-effectiveness

Due to the data driven and ever-changing nature of the programmatic, advertisers can do more or less. The automatization limits the number of mistakes and the expenses of administration.

Premium inventory accessibility

There are a lot of places that introduce programmatic direct and private marketplaces (PMPs). Which can supply advertisers with high quality environments within a controlled environment with premium publisher sites.

Disadvantages of programmatic advertising

AD Fraud

Bots and bogus traffics are a threat to automated systems. Unless closely observed the advertisers risk paying to effect impressions that do not reach actual human beings.

Transparency Absence

In other cases, you do not even know where your adverts are being released. When such complete disclosure is not practiced, the chances are high that your brand could end up in sites of low quality.

Complexity

The eco system envisages demand –id platforms (DSPs), supply side platforms (SSPs), data management platforms (DMPs), etc. This is a landscape that can confuses newcomers.

Privacy Concerns

As the privacy of data and laws such as GDPR and CCPA come under more attention. The programmatic advertisers should be careful to confirm regulations in amassing and utilizing consumer data.

Creative Fatigue

This high rate of programmatic campaigns may cause users to undergo repetitive modifications. As the risk of becoming banner blind so as to diminish engagements.

Conclusion

In order to succeed with programmatic, marketers should balance automation and control. Investing in the proper equipment, collaboration with reliable suppliers and remaining on par with the privacy laws of conduct are regulations and the human touch where it is most important.