Programmatic Advertising: Machines Do a Lot But Can’t Create

Programmatic Advertising: Machines Do a Lot But Can’t Create

By: Austin Dicharry

Advertising buyers have increased the amount of ad purchases they make using programmatic advertising. The reasons are many, but the impact is the speed with which programmatic advertising or automatic advertising can begin a campaign.

Before the adoption of programmatic ad buying, the process for buying online advertising took time. Humans bought and sold advertising space using Requests for Proposals (RFPs), negotiations after the RFP came in and then an IT technician inserts the ads. The process is not only long, but with so many people involved it is expensive.

Nearly $140 billion is the expected this year for digital advertising and 78 percent of online marketers use programmatic for their campaigns.

Programmatic Advertising is More Efficient

Since humans are… well, human, they need to sleep, have time away, get sick, or come to work unprepared to work at their peak performance. Machines, who do all the tasks associated with programmatic advertising have none of the issues that people do.

Machines Will Not Replace People

The software used for automatic advertising does the low-status work that people used to do up until now. Today, machines deal with ad tags and sending insertion orders to publishers. However, people are still needed for optimizing campaigns and to plan strategies for the long-term and the shorter-term tactics to carry out the strategy. The growth of programmatic advertising technology does mean that it is likely that fewer workers will buy advertising, but advertisers and marketers freed from the bureaucracy of buying advertising online now have the time to plan advanced, custom campaigns.

Additionally, the creative aspects of advertising can best be done by people. Even the most advanced programming does not give machines imagination or creativity.

Kinds of Ads are Bought By Programmatic Advertising Software

There are two-way to buy programmatic advertising . The most common way is real-time bidding (RTB). But contrary to the belief of many, RTB is not the only type of ad buying done by programmatic software. The second type of ad space buying is programmatic guaranteed also known as programmatic direct. Publishers sell this advertising in advance for a set price rather than auctioning the space.

Real-time Bidding and Programmatic Advertising is Good for Advertisers

One reason that advertiser like RTB is that it is efficient. In addition to the efficiency of how an ad buy happens, there is also where more favorable ad placement. Instead of having to deal with a publisher’s entire network of sites, of which many audiences are not good prospects, buyers use ad exchanges, or other advanced technology that allows them to reach a lot of advertising inventory across uncountable sites. They select only those sites they believe have the most value for them.

Programmatic Ad Buying is The Immediate Future of Online Advertising

Although no one knows how much advertising buys occur using automated advertising, it is increasing in popularity every day. Many agencies are anxious to buy as much as they can using programmatic technology. Major brands began in-house groups to deal with their programmatic ad buying as more of their marketing allocations go in that direction. While programmatic advertising is mainly used for online advertising, advertising buyers and sellers try finding ways to sell TV and other advertising media using programmatic technology.

The Effect of Programmatic Advertising on Creative Work

Programmatic advertising has had an effect on the creative process in that advertising placement is highly targeted. Ads are more likely giving the potential customer or client with more current, more relevant information. This intersects favorably with Google and other search engines that want an improved user experience. The way now to a higher Google search ranking under the latest Panda changes is by superior content – something that programmatic advertising is perfect for doing.

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