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What is Programmatic Advertising?

November 12, 2021
May 1, 2023

What is Programmatic Advertising?

Alex Kettler

The Basics

Programmatic Marketing is the practice of using automated bids in virtual marketplaces in order to win ad space that displays to clearly defined and extremely specific audiences. This method of marketing is one of the most recent and fastest growing marketing trends in the industry. A simple way to understand programmatic advertising is the fish net analogy. The user could cast a wide net in hopes of catching a particular fish (your audience). However, this wide net will catch jellyfish, seaweed, garbage, and only a few of the desired fish. Or, the user could use fishing lines rigged with bait to catch the specific fish they are targeting which effectively eliminates waste, unnecessary resources, and catching irrelevant prey.

Programmatic Advertising is setting the standard in terms of effectively reaching targeted audiences while efficiently maximizing the user’s return on investment. For more general information on Programmatic Marketing check out this article by Marketing Land.

The Hands-On Portion

The set up is the most human intensive part of Programmatic advertising. Defining your goals and creating parameters that fit your situation need to be defined by the user. Similarly, selecting Key Performance Indicators specific to your business is essential when a user creates a programmatic campaign.

Once the process has been put in place, the A.I. takes over and performs the work for you. Checking in on the programmatic campaign will take a set of human hands. The data gathered by the campaign will be clear and accessible, while also helping the user make any necessary modifications. The amount of hands-on work is minimal, while the automated process does all of the heavy lifting.

How Automation Works for You

Programmatic Marketing uses advanced Artificial Intelligence that far surpasses the capability of manual, hands-on marketing campaigns. The A.I. uses data it has collected and predictive data to target the audience specific to the objectives for each marketing campaign. Because this is such a hands-off process, campaign optimization is continuous and automatic, creating a lighter workload for the user. The A.I. will collect and analyze the data relevant to your campaign. Furthermore, It will clearly show the user areas where the campaign is performing well or poorly and make recommendations to further optimize the campaign.  

The Bidding Process

Every time a user loads a page online, there is a split second, virtual auction that takes place. The auction is selling the ad space available on that page. During the setup process, the user will have determined an appropriate budget. The A.I. will bid in the auction on your behalf to win the ad space offering. The A.I. will only “attend” auctions that meet the requirements for your relevant and specific audience. Read more about the Programmatic Marketplace.

How Can Red Shark Digital Help?

Red Shark Digital offers Programmatic solutions, which is designed to help our clients gain an edge over their competitors. We provide services in Targeted Display, Optimal Ad Placement, and Real-Time Bidding to create meaningful campaigns to meet your specific needs. Our programmatic offerings are comprehensive and cost-efficient, creating productive campaigns for each of our clients. To learn more about Red Shark Digital visit our website.

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