‘Buzzword’ is defined as “a word or phrase, often an item of jargon, that is fashionable at a particular time or in a particular context.” In 2020, anticipate ‘programmatic advertising’ to be thrown around within the digital advertising atmosphere. But programmatic advertising is more than a flashy buzzword. Many hot topic trends fall flat and fail to live up to the hype surrounding it. Programmatic advertising isn’t one of them, and there is money to back that up.
By the end of 2020, programmatic spending is expected to eclipse $127 billion for the year. Currently, programmatic buying accounts for over 80 percent of all digital display ad dollars. The success and popularity of programmatic advertising has grown over the past decade and is finally reaching the mouths of mass marketers and business owners. The landscape of online advertising is about to be forever changed, thanks to hyper-targeting capabilities programmatic presents.
“Programmatic is a growing form of online advertising across all verticals, due to its abilities in targeting and placements, but it is beneficial to the cannabis industry for a much larger reason. For cannabis, the traditional digital marketing platforms such as Facebook, Instagram, and Google have all put policies in place that prohibit advertising the product. Programmatic gives the cannabis industry the ability to pay to get their brand in front of the right people (with restrictions of course) and grow their business.”
- Hannah Rubin, Venta Marketing Director of Digital Marketing
How Does it Work?
Programmatic advertising is an umbrella term that includes multiple forms of ad buying but is defined by the use of artificial intelligence to strategically buy ad placements. At its core, programmatic buying is simple. However, the platform uses various acronyms that can cloud the straightforward inner-workings of the system.
Real-Time Bidding (RTB): Buying and selling online ad space in an auction-style format that takes place in a time span of a few milliseconds.
Demand-Side Platform (DSP): A platform used by advertisers to bid and buy ads in real-time.
Supply-Side Platform (SSP): A platform used by publishers (owners of ad space) to sell their digital space to advertisers.
Data Management Platform (DMP): An extensive collection of consumer information that has been saved from cookies.
The majority of programmatic advertising is done via RTB. The barebones process of how it works starts with:
- Available ad space is placed inside an SSP
- Someone enters a digital space (i.e. website) where programmatic advertising space is present
- The individual visitors’ data is shared with DSP
- AI ad buyers determine if the visitor fits their target audience
- If so, a bid on the ad space is placed
- The highest bid is awarded the space, and the ad is shown to the visitor
This entire ad buying process takes place in the matter of milliseconds.
How Programmatic Advertising Can Help You
Programmatic advertising has started a new era of digital advertising, offering newfound levels of hyper-targeting, not available before. Issues with ads being exposed to the wrong audience is no longer a problem. Programmatic buying delivers increased ad success, by only providing ad impressions to your desired target audience through specific filtering tools. This gives small businesses the capabilities to compete in the same digital space with bigger companies, regardless of budget. With display, video, social, and television ad spots availble, finding your online target audience has never been easier.
Benefits to programmatic buying include:
- Highly-specific audience targeting
- Improved ROI
- Multichannel advertising opportunities
- Ad spend flexibility & transparency
Need Help With Programmatic Advertising?
Elevato Marketing is a full-service digital agency specializing in cannabis advertising. With a team of experienced professionals, we are ready to help connect your products with the right clients. Contact us to see how together we can benefit your business!