Programmatic Advertising Explained

By jackie Marketing, seo company auckland, Tech Comments Off on Programmatic Advertising Explained

Programmatic Advertising Explained

Consider these compelling statistics: The programmatic advertising market is gearing up for a $314.27 billion expansion between 2022 and 2026. Digital advertising took up 67% of the global ad revenue pie in 2022, and forecasts suggest it will elevate to 73% by 2028, hitting the 70% mark by 2024.

It’s clear that businesses that aren’t leveraging programmatic advertising are missing out on potential opportunities to enhance their reach and improve their bottom line.

What is Programmatic Advertising?

  • automated buying
  • real-time bidding
  • data-driven

Programmatic advertising is a data-driven form of automated buying and selling of digital advertising space. It is a form of real-time bidding that allows advertisers to purchase digital ad space in an automated fashion. This process is powered by algorithms that are designed to optimise the buying and selling of digital ad space. It is a powerful tool for marketers, as it allows them to target specific audiences and maximise their ad spend. 

By leveraging data-driven insights, marketers can create highly targeted campaigns that are tailored to their desired audience. This helps to ensure that their ads are seen by the right people, at the right time, and with the right message. Programmatic advertising is quickly becoming the preferred method of digital advertising, as it allows for greater control and efficiency.

How does Programmatic Advertising Work?

Programmatic advertising works by using automated technology to buy and sell digital advertising space, replacing the traditional method that involves human negotiation. The process begins when a user clicks on a webpage that has programmatic advertising space. Information about the page and the user is then sent to an ad exchange, which analyses the data about the user, including their demographics, browsing history, and purchasing habits. This data is then used to match the user with an advertiser who is looking to target that specific demographic.

The ad exchange then holds an auction for the ad space, with different advertisers bidding for the chance to display their ad to the user. This auction takes place in real time and is completed in milliseconds. The highest bidder gets the opportunity to display their ad. This entire process, from the user clicking on the webpage to the ad being displayed, happens nearly instantaneously. This level of efficiency and precision is what makes programmatic advertising a powerful tool for modern digital marketing.

Core Benefits of Programmatic Advertising

  • efficiency
  • precise targeting capabilities
  • flexible ad spend
  • provides valuable insights and analytics
  • increased campaign reach

Programmatic advertising carries several unique benefits that make it a potent force in the digital marketing landscape. One of the most significant advantages is its efficiency. The automation of buying and selling ad space saves time and reduces the potential for human error, providing a streamlined, effective process.

Secondly, programmatic advertising offers precise targeting capabilities. By utilising user data, ads can be tailored to specific demographics, interests, and online behaviour patterns. This level of personalisation maximises the relevance of ads to users, increasing the likelihood of engagement.

Moreover, real-time bidding allows for flexible ad spend. Advertisers can adjust their bids based on the value they perceive in each impression, ensuring that they pay the optimal price for each ad space. This flexibility can lead to a higher return on investment.

Additionally, programmatic advertising provides valuable insights and analytics. Advertisers can track the performance of their ads in real time and refine their strategies based on the data. This continual learning process can lead to more effective, higher-performing campaigns over time.

Lastly, programmatic advertising increases the reach of campaigns. With the ability to access a vast network of websites and apps, programmatic advertising can expose a brand to a large, diverse audience. This increased reach can boost brand awareness, drive more traffic, and ultimately lead to more conversions.

Measuring the Success of Your Campaign

In measuring the success of a programmatic advertising campaign, there are a few important steps to consider. 

  • define KPIs
  • track
  • analyse data
  • refine and optimise

Define your key performance indicators (KPIs). These might be click-through rates, conversion rates, impressions, or other metrics that align with your campaign goals. Then, implement tracking mechanisms to collect data related to these KPIs. Most programmatic advertising platforms provide built-in analytic tools for this purpose. 

Analysing this data regularly is the next step. Look for trends, patterns, and insights that could help you understand your campaign’s performance. For instance, if a particular ad is generating a high click-through rate, it might be worth investing more in that area. Alternatively, if an ad isn’t performing as expected, you might need to revisit its design or placement. 

Finally, use these insights to refine and optimise your campaign. This might involve adjusting your bid strategy, targeting parameters, or creatives based on the data. This process of measurement, analysis, and optimisation should be ongoing, ensuring your campaign continues to improve and achieve its objectives.

7 Steps to Setting Up Your Campaign

Setting up a programmatic advertising campaign involves several key steps.

1. Define Campaign Goals

The first step is to identify what you want to achieve with your campaign. This could be increasing brand awareness, generating leads, or driving conversions.

2. Identify Your Target Audience

Once you have your goals set, determine who your target audience is. This should be based on your product or service and the demographics of the customers you are trying to reach.

3. Choose the Right Platforms

Different programmatic platforms offer different features, so choose the one that best suits your needs and target audience.

4. Create Engaging Creatives

Design ads that align with your brand and appeal to your target audience. This could involve creating banner ads, video ads, or other types of creative content.

5. Set a Budget and Bid Strategy

Determine how much you are willing to spend on your campaign and set up a bidding strategy. This will depend on factors like your overall marketing budget and the competitiveness of your industry.

6. Launch Your Campaign

Once everything is set, you can launch your campaign. Monitor it closely in the initial stages to ensure it is running as expected.

7. Analyse and Optimise

As your campaign runs, collect data on its performance. Use these insights to optimise your campaign, tweaking elements such as the creatives, bidding strategy, and targeting as needed.

By following these steps, you can set up a successful programmatic advertising campaign that achieves your desired business objectives.


In conclusion, while managing a programmatic advertising campaign might seem doable, it involves a considerable amount of strategic planning, continuous monitoring, and ongoing optimisation – a process that can be time-consuming and complex.

Partnering with a specialised agency like Digital Squad ensures that you have a team of experts by your side who understand the nuances of programmatic advertising. We can adeptly handle the campaign’s execution from start to finish, leaving you free to focus on your core business operations. Our proficiency in identifying the right target audience, crafting engaging creatives, selecting the optimum platforms, and analysing campaign performance, can provide your business with a competitive edge. Therefore, to maximise your return on investment and achieve your business objectives most efficiently, entrusting your programmatic advertising campaign to Digital Squad is a prudent choice. Contact us today for more information.

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