If you work in the field of digital marketing, you will necessarily be familiar with the term “programmatic”. Logic, since programmatic has simply revolutionized Internet advertising. For fans, do not worry, we explain immediately and in all simplicity what is meant by “programmatic marketing”.
Very simply, programmatic marketing allows businesses to reach their target audience more effectively when they are surfing the Internet. Concretely, potential customers will see on their screen ads targeted and personalized, independent of the site on which they are present.
There are different types of programmatic marketing
Real-Time Bidding (RTB) – This is the most used system by advertisers. In summary, the company uses an algorithm that allows it to find an ideal combination of customers, website, and cost. The RTB uses public auctions as well as Big Data.
Programmatic Direct –
Programmatic direct is more secure than RTB. Its specificity is that it offers the advertiser complete control over the site where his advertisement will be displayed. It also allows to directly connect the buyer and the seller.
Private Auction – This is the system halfway between the RTB and the programmatic direct. The ad space vendor invites specific advertisers to bid for a space on their site. In contrast to programmatic direct, the private auction allows the owner of the website to have more control over the advertisements that will be displayed there.
The main advantages and brakes of programmatic
We will not hide it auction ads, programmatic marketing, it’s still complicated. What’s important to remember is that this system is a big step forward for online advertisers as it gives them more flexibility. In addition to allowing them to buy real-time advertising space, the programmatic also provides them with the opportunity to send personalized messages to their customers, wherever they are on the Net. It is for companies the opportunity to stay in touch with their target audience and ultimately increase their online sales rate.
However, there are two main obstacles that slow down the expansion of programmatic:
Commercial Fraud –
This is not a specific barrier as commercial fraud affects all types of online marketing. The problem, which will concern more specifically programmatic marketing, is the bots that create fake clicks on the websites and their advertisements. Consequences: Advertisers’ marketing budget will be wasted in unnecessary auctions.
The complexity of the system –
By cons, it is a defect inherent in programmatic marketing: the system is recent and requires technical skills to master all its subtleties. As a result, some advertisers do not trust this auction system, and some do not like the fact that programmatic, like any automated system, removes the need for human resources.
Despite these two obstacles, observing trends, it is clear that programmatic marketing is a method that is increasingly used by companies in the digital marketing world. And maybe even in the near future, all Internet advertising will be fully automated.