Originally posted on http://www.goprogrammatic.com/what-is-programmatic-ad-buying-in-2019/

Traditional purchases of advertising are generally made by business owners or marketing agencies on behalf of companies which buy ads on various media platforms. Programmatic ad buying is a relatively new way to purchase advertising on digital platforms for the web. Basically, you select the target audience, budget, and frequency of the ad purchases and a software program does the rest. It’s all about streamlining and automating the process of digital ad buying!

This is an algorithmic form of purchasing that occurs when pre-set conditions are met. The software will make the purchase, place the ads, and optimize the inventory of media through a bidding system. Once you set the parameters, the software does the rest. The greatest benefit to programmatic advertising in 2019 is the amount of money it can save you compared to traditional ad results. Automation is everything and it’s given programmatic advertising massive opportunity within business development opportunities.

In other words, when a webpage has space for advertising, information about the page is made available, so that the space is either auctioned off to the highest bidder or when a pre-determined rate is met. All this happens so quickly that those viewing the downloaded page are not aware that ads have been sold and placed tailored for them.

How It Works

Basically, programmatic ad buying is possible when publishers have the software known as Supply-Side Platform (SSP) which allows them better control of their inventory. Demand-Side Platform (DSP) which allows advertisers or agency to purchase ad inventory. And the Ad Exchanger component which is how the supply-side produces inventory into the ad exchange.

Although the automated technology used to create programmatic ad purchasing is fairly straightforward, there are different applications in terms of how it is used.

– Real-Time Bidding (RTB)
– Private Marketplace (PMP)
– Programmatic Direct

An RTB is an open auction which determines the inventory prices all in real time. Any publisher or advertiser can use RTB which is considered the most cost-efficient means of purchasing media that reaches large audiences.

Originally posted on YouTube by IAB – Interactive Advertising Bureau

A PMP is similar in many ways to an RTB, but access is by invitation only. Which means there are restrictions to those who can participate. A programmatic direct is when publishers sell media inventory at a fixed cost instead of going to an auction process.

Advantages of Programmatic Ad Purchases

For entrepreneurs and small business owners, there are several benefits to using a proven automated system in purchasing your advertising. Here are just a few:

Fast Ad Purchases:
Basically, the entire process is not only automated, but happens in milliseconds. That is well beyond the ability to purchase ads manually to target specific audiences.

Tailor Specific Messages:
You can create ads that are tailored with a specific message to reach the people most likely to purchase your products or services. This gets the full value out of programmatic ad buying.

Focus Manual Ad Purchases in Other Areas:
The old-fashioned methods of purchasing ad space are not out of date, but rather can be used for brand-building and awareness. This means you can pick and choose the ad budget for making manual purchases over time while programmatic ad buying is targeting specific audiences.

In 2019, programmatic ad buying is a mainstay of ad purchases thanks to the advancement of digital technology. The future for this form of ad buying will only grow brighter as more advertisers take advantage of this technique. If you’re not doing programmatic advertising in 2019 then you better make sure to include it for 2020. By then it won’t be a new trend but a must for any marketer or business owner. It won’t be about keeping up with the trends by 2020 but rather keeping up with your competitors!

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