Programmatic Advertising: What Is It & Why You Should Care

Posted by Jarad Frimmel on August 30, 2016

programmatic advertising

Jimmy Kimmel once said: “Programmatic buying is the gluten of advertising. Like gluten, ‘programmatic’ has become a buzzword that many people use but few really understand. They just know it’s important.”

However, the true definition can be summed up like this:

“Programmatic advertising is using technology and audience insights to automatically buy and sell ad inventory to reach the right person with the right message.”

Mark Barry, Head of Media Buying Solutions, Google, REACH THE RIGHT AUDIENCE presentation, Google Accelerate event, 13 and 14 October 2015 at the Google EMEA HQ in Dublin.

In basic terms, it’s the using of machines to buy ads.

Why does programmatic advertising matter?

Efficiency. Before programmatic, digital advertisements were bought and sold by human ad buyers and salespeople; this was expensive and unreliable. By removing humans from the process wherever possible, programmatic advertising technology allows marketers to skip these cumbersome methods, making the ad buying system more efficient, and therefore cheaper

Is programmatic “the future of ad buying”?

Yes, maybe, most probably. It’s impossible to tell what portion of advertising is now traded programmatically, but it’s definitely on the rise. A few agencies internationally now say they’re eager to buy as much media as possible through programmatic channels, and some major brands have even built in-house teams to handle their programmatic ad buying as they spend more of their marketing budgets that way.

 Are you interested in programmatic advertising to renew your marketing efforts and reach your target audiences more effective? Speak to Renier Meyer, Operations Manager at Interexcel.

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