Programmatic ad buying is something you’ve probably been engaged with for years. It’s so second nature to you, that you often don’t consider the process that drives it. Understanding programmatic ad buying is a big advantage to advertisers. Knowledge is power, and you should know where your traffic comes from and how you can increase the quality of your ads based on that traffic.
Programmatic ad buying is a term that encompasses all forms of automated traffic, including highly targeted and hyper-local display advertising.
The Old Ways of Media Buying
When you wanted targeted traffic in the old days, you began with a list of websites that you thought would be good candidates. You then narrowed that list down to who you wanted to work with, then negotiated to fit your budget. Most of the time, you spread your budget to various publishers , securing only a small space on several websites. That’s an awful lot of work just to test a campaign, plus you need to maintain those relationships to keep your rates low and your partners happy. That’s also not counting research, which was harder to come by.
Programmatic ad buying simplifies this process.
The Role of Ad Exchanges
The biggest change that the Web has brought to the world of media buying is the creation of ad exchanges. When you purchase from an ad exchange, you may have the option to target based on demographics like interests or gender. Ad exchanges connect you directly to consumers that want to see your banner advertising for a small fee.
This direct traffic changes how we construct ads, and makes the process granular. Ad development is now a painstaking process of testing, where each potential variable is ironed out in search of the ideal formula. Once you have targeted the right kind of user, you can begin honing your message to increase response. All in a matter of days or weeks.
The process of buying media in today’s world is done at a scale that humans are incapable of. Buying from an ad exchange opens you up to a wider array of consumers, and offers you the chance to get new customers outside of your local area.
Bio: Ted Dhanik is a passionate thought leader in the direct marketing industry. Ted Dhanik has been working in banner advertising for more than ten years, branding companies like MySpace.com. For information on display advertising, contact Ted Dhanik.