What Is Programmatic Advertising And Why It Matters For Publishers

Programmatic advertising is a process of buying and selling ad inventory through automated processes, which enable publishers to sell their ad inventory and advertisers to buy impressions at a satisfying bidding price.

Publishers’ revenue model is primarily based on selling ad inventories to advertisers.

In the old days, publishers would sell most of their ad inventory through salespeople. However, most of the digital ad inventory is now managed via ad exchanges which are based on automated processes.

Often those programmatic processes also use sophisticated systems that tap into data to qualify the audience. Usually, that data comprises demographics, location, interests, and behaviors of the users, on the publisher‘s platform. 

At the same time, a programmatic advertising network might use artificial intelligence to better target and match audiences with advertising. 

Therefore, in theory, a programmatic advertising process can leverage on a more complex system to provide better-targeted ads, which might be more engaging, and relevant for users, and bring a higher ROI for advertisers.

In general, the data collected via programmatic advertising can be first-party data (if gathered from the owned platform) or second, third party data (if gathered on outside platforms).

Why does programmatic advertising matter?

Since programmatic advertising is an automated process of buying and selling ad inventory, this usually channels in two ways:

  • directly
  • Or through real-time bidding

As explains, there are four main categories of programmatic advertising:

  • Automated Fixed Price, Reserved Sales, executed directly between a single buyer and seller.
  • Fixed Price, Unreserved Via Deal ID, executed at fixed-price deals with a given buyer, on a nonguaranteed basis. 
  • Private Exchanges, based on a bidding protocol and limited participation.
  • Open Exchanges nonfixed, without price floors or limits on buyer access.

Other types of marketing

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Developer marketing encompasses tactics designed to grow awareness and adopt software tools, solutions, and SaaS platforms. Developer marketing has become the standard among software companies with a platform component, where developers can build applications on top of the core software or open software. Therefore, engaging developer communities has become a key element of marketing for many digital businesses.
TikTok, owned by the Chinese tech giant ByteDance turned as among the most successful native micro-video platforms, and it became the go-to platform for millions of young users. Thus, the “TikToker” has already become the evolution of the “influencer” from platforms like Instagram. Those TikTokers make money in a few ways, such as monetary gifts, sponsorships, advertising agreements, affiliations, and more.
Blogging is a prevalent and well-established practice, with popular blogging platform WordPress powering many websites on the internet. While a few successful bloggers really make money, those who do usually monetize through affiliate marketing, Google AdSense (or other advertising platforms), sponsorships, memberships, or selling their own digital and physical products.
Online influencer marketing is a relatively new creation, but it has fundamentally changed how brands communicate with consumers. People with targeted audiences are now the focus of advertising efforts. Influencers can tap from small to larger audiences thus, giving companies another way to promote their products. Indeed, influencers make money by selling digital products via sponsorships and affiliations, brand ambassadors programs, and physical products.
Sustainable marketing describes how a business will invest in social and environmental initiatives as part of its marketing strategy. Also known as green marketing, it is often used to counteract public criticism around wastage, misleading advertising, and poor quality or unsafe products.
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Guerrilla marketing is an advertising strategy that seeks to utilize low-cost and sometimes unconventional tactics that are high impact. First coined by Jay Conrad Levinson in his 1984 book of the same title, guerrilla marketing works best on existing customers who are familiar with a brand or product and its particular characteristics.
A digital channel is a marketing channel, part of a distribution strategy, helping an organization to reach its potential customers via electronic means. There are several digital marketing channels, usually divided into organic and paid channels. Some organic channels are SEO, SMO, email marketing. And some paid channels comprise SEM, SMM, and display advertising.

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