Programmatic Ad Buying: the Effective Marketing Tool You Should Understand

Programmatic advertising – which is the purchase of media inventory based on audience-focused factors – has recently presented itself as one of the most popular topics in the digital marketing field.

Programmatic ad buying is highly targeted. Whether you’re a seasoned B2B marketer or a new B2C marketer, chances are you know how important it is to find and access the most relevant audience who have interests in your particular products or services. You can hone in on your most beneficial customers, based on the data you collect.

Programmatic ad buying changes the way that businesses approach new potential customers by emphasizing on audience buying, which is the opposite of site buying. This allows you to find the prospects that you need in environments outside of the typical sites that most other marketers may use. Engaging with audiences in a whole new set of circumstances can open many new doors of opportunities for your company.

Chinese digital advertising market is incredibly fragmented. Compared to the highly specialized and relatively efficient structure seen in more developed markets, Real Time Bidding in China is complicated by multiple participating enterprises with differing roles and duties. Currently, most display advertising budgets are channeled to ad exchanges. However, other advertising demand management entities have sprung up to improve the digital advertising funnel. Demand Side Platforms work well with Advertising Networks, which is why China has developed a unique DSPAN model – Demand Side Platforms and Ad Networks merge. This happened as a result of the Chinese ad market’s transition from traditional, manual media buying to programmatic. The big advantage for advertisers is that this allows them to test-run programmatic buying instead of switching to programmatic all at a go.

Despite all the benefits, RTB can help to precisely target the right users. Yet advertisers in China are not all running to adopt it right away. RTB is still in its infancy in China. Effective RTB relies on a large quantity of high quality data. Not many publishers have moved their inventory to the RTB ecosystem. Many publishers don’t provide full transparency and access to data, making it hard for marketers to deploy algorithm optimization strategies. In turn, advertisers raise concerns about the quality of media resources. This problem is particularly common amongst brand advertisers who are more concerned about the safety of their brand.

Even if facing challenges in china, the inherently convenient, automated functionality of programmatic media purchases has made many industry experts think that it is the next big thing in terms of ensuring every dollar within the marketing budget is well spent. Recently, the digital advertising industry has pushed publishers to police their inventory and take advantage of the creative canvases available for programmatic buying – the result of which has been rapidly expanded into premium inventory channels. If things continue at this rate, we can assume that programmatic ad buying will continue to increase in value for advertisers that seek to significantly impact the target consumers.