What is Programmatic Advertising in 5 Questions?

Programmatic advertising is a broad term that refers to the use of software to price and purchase digital ad spaces on websites. This method effectively reduces errors in digital advertising while improving operational efficiency. According to the 2020 report by the Advertising Association, 79% of digital ads in Turkey were delivered through programmatic advertising. Programmatic advertising is an automated ad buying model powered by artificial intelligence and machine learning, with bidding processes happening in milliseconds. Like display ads on Google Ads, your banner or video ads are shown on the most relevant websites, selected by AI, targeting the most likely converters at optimal times. Unlike other ad buying models, programmatic advertising spans multiple platforms, enabling you to reach websites across various countries. This approach offers a broader reach, rather than being confined to a limited number of sites on just one or two advertising platforms. At IQUEEM, we’ve addressed five key questions about programmatic advertising for you:

1.⁠ ⁠What is the future of programmatic advertising?

Programmatic advertising is no longer a vision of the future — it has firmly established itself as the cornerstone of modern marketing. With a global advertising volume reaching $493 billion USD and an impressive 18% growth in 2021 — the highest in the past three years — it continues to redefine the dynamics of digital advertising worldwide. (source https://www.statista.com/topics/2498/programmatic-advertising/#dossierKeyfigures)

2.⁠ ⁠How to Get Started with Programmatic Advertising?

Unlike Facebook or Google Ads, programmatic advertising doesn't allow end users to simply open an account and start running ads directly. These platforms are typically utilized by SMEs and startups abroad. Programmatic ads are delivered through DSPs (Demand-Side Platforms), also known as programmatic buying platforms. DSPs form corporate partnerships by signing contracts and NDAs with advertising agencies. The number of active DSPs in Turkey is steadily growing, with companies like Google DV360, Hybrid, Adform, and TheAdx working with numerous agencies. For example, IQUEEM has partnered with four new programmatic platforms over the past year. To get started, reach out to advertising agencies and choose the programmatic platform that best fits your needs.

3.⁠ ⁠What Ad Formats Are Available?

Programmatic advertising platforms support various ad formats, including static banners, responsive banners, videos, and audio ads. HTML-based banner ads offer more advanced features than traditional platforms like Google Ads, resulting in higher click-through rates. Audio ads can also be used on platforms like Spotify and digital radio broadcasts.

4.⁠ ⁠Are Programmatic Ads Expensive?

Programmatic ads use real-time auction technology, so it's not entirely accurate to label them as either cheaper or more expensive than other advertising tools. Real-time auctions perform best when correct targeting, conversion setups, and tracking pixels are applied to the programmatic panels. As the algorithm learns and conversion processes aligned with your business goals (such as calls to a call center) are properly tracked, costs per click and acquisition can decrease. When the right programmatic platforms are used, the cost per acquisition can be up to half that of traditional display ads. (Source)

5.⁠ ⁠Who Is Programmatic Advertising Best Suited For?

Programmatic advertising provides numerous benefits for all advertisers and publishers in the digital space, including:
a. Brands that invest substantial budgets in digital advertising,
b. Those looking to manage campaigns across multiple channels simultaneously to maximize ad effectiveness, without being restricted to the target potential of just one or two advertising platforms,
c. Businesses seeking tangible results and profit growth, rather than being satisfied with metrics like impressions and clicks that don’t directly contribute to business success,
d. Those looking to utilize innovative and creative target segments.