Click! Click! Space is sold to the highest bidder.
Just as the fast fashion brand Zara puts the right product, in the right quantity, at the right place and at the right time, similarly it’s happening with the ads that you see on the web. With the technology advancing so rapidly, advertising is evolving using algorithms to present the right advertisement, at the right time, to the right person. As opposed to humans handling ad placements manually, programmatic advertising gives an opportunity to the marketer for only paying for the relevant impressions on its ads and giving insights into the customer buying behavior for maximum Return on Investment (ROI).
According to one of the global digital snapshot issued by social media marketing and management company hootsuite; around 3.819 Billion of the world’s population is an active internet user. The digital platform gives you an opportunity to not just getting connected with the host country but also anywhere and everywhere which has internet connectivity. But with more and more companies trying to make its presence felt on the digital platform, it became difficult for companies to keep a track on advertisements through the traditional process. Companies like Google and Facebook use automated processes and real-time bidding for selling ad inventory spaces to companies looking to advertise products through digital platforms.
Why do you think big companies like Google or Facebook are giving you a free tool to use their services, without any charges? Just imagine if only you were paying Google or Bing a dollar every time you used their search engines. But it would limit your access and in turn, you won’t use it that often. Instead, these companies realized that rather than charging from customers directly, they would charge from companies wanting to put advertisements to promote their products. It works just like walking into a Wal-Mart store, when you walk towards the detergent section you will notice various brand to choose from. Some brands will have standalone shelf other would be kept in a pile of shelves. You select a brand and as soon as you make a payment for that product the money gets transferred to the purchased brand account. Similarly, search engines give you a platform to advertise your product and depending on the bid that you make will decide your brand visibility on a particular site. And for every click you make on the advertisement the bid money gets deducted from the advertiser’s account. This process is also known as the Pay Per Click (PPC). This is one part of programmatic advertising; the programmatic software also allows companies to buy guaranteed ad impressions from specific sites of your choice.
In a very subtle way, programmatic advertising is the eureka moment for marketers in the digital era. It allows marketers in planning a holistic marketing strategy for the consumer instead of getting bogged down by the traditional manual advertisement placement. The digital marketing world was lumbering under a waning hangover of dotcom bust until the programmatic advertising happened to give the marketers a peek into the vast pool of opportunities.