{"id":1337,"date":"2017-01-31T23:35:03","date_gmt":"2017-01-31T23:35:03","guid":{"rendered":"https:\/\/www.digitalsuccess.us\/blog\/?p=1337"},"modified":"2020-06-02T10:03:59","modified_gmt":"2020-06-02T10:03:59","slug":"programmatic-advertising-future-of-online-ads","status":"publish","type":"post","link":"https:\/\/www.digitalsuccess.us\/blog\/programmatic-advertising-future-of-online-ads.html","title":{"rendered":"What is Programmatic Advertising and Why is it Growing so Quickly?"},"content":{"rendered":"<p>If you\u2019ve used the internet in the past 5 years, then programmatic advertising has already affected you and you didn\u2019t even know it. This shouldn\u2019t come as a surprise, though, since marketers spent <a rel=\"nofollow\" href=\"https:\/\/www.emarketer.com\/Article\/More-Than-Two-Thirds-of-US-Digital-Display-Ad-Spending-Programmatic\/1013789\">$22.10<\/a> billion in 2016 on this marketing channel alone. Here\u2019s why.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1631\" src=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=462%2C24&#038;ssl=1\" alt=\"f\" width=\"462\" height=\"24\" srcset=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1426&amp;ssl=1 1426w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=300%2C15&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=1024%2C53&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1208&amp;ssl=1 1208w\" sizes=\"auto, (max-width: 462px) 100vw, 462px\" \/><\/p>\n<h1><strong>What is programmatic advertising?<\/strong><\/h1>\n<p>Programmatic advertising is the online ad bidding and buying system that allows marketers to reach the audience they\u2019ve selected as valuable at the ideal time with a specified message. This system is automated by machines and touches online users across multiple device platforms.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1631\" src=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=462%2C24&#038;ssl=1\" alt=\"f\" width=\"462\" height=\"24\" srcset=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1426&amp;ssl=1 1426w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=300%2C15&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=1024%2C53&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1208&amp;ssl=1 1208w\" sizes=\"auto, (max-width: 462px) 100vw, 462px\" \/><\/p>\n<h1><strong>Why do people use programmatic advertising?<\/strong><\/h1>\n<p>It cuts out human error and waste when purchasing ad space online. One thing we know for sure is that humans make mistakes and cannot work 24 hours a day. Because machines can and do it at scale, there\u2019s little reason to involve humans anymore. All the humans have to do anymore is figure out who they want to target, how they want to target them, and the message they would like to send to them. Machines take care of the rest!<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1631\" src=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=462%2C24&#038;ssl=1\" alt=\"f\" width=\"462\" height=\"24\" srcset=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1426&amp;ssl=1 1426w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=300%2C15&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=1024%2C53&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1208&amp;ssl=1 1208w\" sizes=\"auto, (max-width: 462px) 100vw, 462px\" \/><\/p>\n<h1><strong>Why is it growing so quickly?<\/strong><\/h1>\n<p>eMarketer\u2019s senior analyst <a rel=\"nofollow\" href=\"https:\/\/www.emarketer.com\/Article\/More-Than-Two-Thirds-of-US-Digital-Display-Ad-Spending-Programmatic\/1013789\">Lauren Fisher<\/a> had this to say about the growth of programmatic advertising.<\/p>\n<p><em>\u201cProgrammatic is extremely efficient and unparalleled in its ability to pair rich audience data with ad inventory and targeting.\u201d<\/em><\/p>\n<p><em>\u201cBuyers and sellers are becoming more comfortable with the technology. As a result, it is being rapidly adopted across a variety of channels and ad formats.\u201d<\/em><\/p>\n<p>And mobile is the main driving force behind why programmatic advertising has grown so quickly. The percent of total spend dedicated to mobile is over two thirds at 69%.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1631\" src=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=462%2C24&#038;ssl=1\" alt=\"f\" width=\"462\" height=\"24\" srcset=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1426&amp;ssl=1 1426w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=300%2C15&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=1024%2C53&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1208&amp;ssl=1 1208w\" sizes=\"auto, (max-width: 462px) 100vw, 462px\" \/><\/p>\n<h1><strong>What can you do with <\/strong><a href=\"https:\/\/www.digitalsuccess.us\/programmatic-advertising-services-dallas.html\"><strong>programmatic advertising<\/strong><\/a><strong>?<\/strong><\/h1>\n<p><em>The tactics<\/em><\/p>\n<ul>\n<li style=\"text-align: left;\"><strong>Virtual fencing or geo-fencing<\/strong>: Drawing a fence around a geographic location and targeting those in that area with a programmatically purchased ad allows for several things to happen.<\/li>\n<\/ul>\n<p style=\"padding-left: 30px;\">1. You can target your competitor\u2019s customers and leads. Placing the fence around their locations gives you access to track and target all who entered that area with your own message.<\/p>\n<p style=\"padding-left: 30px;\">2. Target those who enter stores which offer something related to or depend upon your product\/service.<\/p>\n<p style=\"padding-left: 30px;\">3. Virtually fence your own stores to track all who visit you and stay top-of-mind with them through advertisements.<\/p>\n<p style=\"padding-left: 30px;\">4. Target every person who visited a trade show or event with your brand\u2019s message.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1631\" src=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=462%2C24&#038;ssl=1\" alt=\"f\" width=\"462\" height=\"24\" srcset=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1426&amp;ssl=1 1426w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=300%2C15&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=1024%2C53&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1208&amp;ssl=1 1208w\" sizes=\"auto, (max-width: 462px) 100vw, 462px\" \/><\/p>\n<div class=\"forImgCls\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/02\/new1.jpg?resize=231%2C298&#038;ssl=1\" alt=\"geo-fencing\" width=\"231\" height=\"298\"><\/div>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Data Onboarding:<\/strong> Onboarding your company data (CRM data generally) into a <a href=\"https:\/\/www.digitalsuccess.us\/blog\/programmatic-advertising-must-business-strategy.html\">programmatic advertising<\/a> campaign lets you do two things.<\/li>\n<\/ul>\n<ol style=\"text-align: left;\">\n<li>See past data on who bought from you and what they bought from you to create custom (dynamic) ads to be served to your past customers and keep them coming back.<\/li>\n<li>Create an accurate and useful look-a-like audience from those who have already bought from you.<\/li>\n<\/ol>\n<ul>\n<li><strong>Persona Targeting<\/strong>: Programmatic advertising lets you drill down into the exact demographics of who their target audience is and focus your ads only on them. Persona targeting illustrated looks like this:<\/li>\n<\/ul>\n<div class=\"forImgCls\"><a href=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/02\/new2.jpg?ssl=1\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1340\" src=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/02\/new2.jpg?resize=604%2C242&#038;ssl=1\" alt=\"Programmatic advertising\" width=\"604\" height=\"242\" srcset=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/02\/new2.jpg?w=1233&amp;ssl=1 1233w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/02\/new2.jpg?resize=300%2C120&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/02\/new2.jpg?resize=1024%2C411&amp;ssl=1 1024w\" sizes=\"auto, (max-width: 604px) 100vw, 604px\" \/><\/a><\/div>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1631\" src=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=482%2C25&#038;ssl=1\" alt=\"f\" width=\"482\" height=\"25\" srcset=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1426&amp;ssl=1 1426w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=300%2C15&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=1024%2C53&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1208&amp;ssl=1 1208w\" sizes=\"auto, (max-width: 482px) 100vw, 482px\" \/><\/p>\n<ul>\n<li><strong>Contextual\/Category Targeting<\/strong>: When someone is reading or researching a page online that is related to what your company offers, you can serve ads to them on those pages provided there are ad spaces to purchase. And because programmatic ad buying software lets you designate the topics and keywords you want to target, you can buy ad spaces on pages that contain your competitor\u2019s names.<\/li>\n<\/ul>\n<ul>\n<li><strong>Keyword search targeting<\/strong>: When a potential buyer searches for a product or service (or something related to it) you can tag them and show your message to them wherever they go. What\u2019s cool about this is that you can actually tag someone that searched for a competitor and show your ads to them based off that as well.<\/li>\n<\/ul>\n<ul>\n<li><strong>Site Retargeting:<\/strong> When someone visits your site or a specific page on your site, you can buy out the ads wherever they go. This allows your investment to get them to your site to be maximized.<\/li>\n<\/ul>\n<ul>\n<li><strong>IP Targeting:<\/strong> IP targeting gives marketers the ability to focus in on the exact IP of a building or buildings that they think are a valuable piece of their target audience. This method of geo-targeting works of the internet identifier that can allow marketers to be extremely selected about their targeting.<\/li>\n<\/ul>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1631\" src=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=462%2C24&#038;ssl=1\" alt=\"f\" width=\"462\" height=\"24\" srcset=\"https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1426&amp;ssl=1 1426w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=300%2C15&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?resize=1024%2C53&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.digitalsuccess.us\/blog\/wp-content\/uploads\/2017\/03\/f.png?w=1208&amp;ssl=1 1208w\" sizes=\"auto, (max-width: 462px) 100vw, 462px\" \/><\/p>\n<h1><strong>Programmatic is the future of online ads<\/strong><\/h1>\n<p>$22 billion were spent on it in 2016, and $27 is forecasted for the remainder of 2017. Programmatic is growing by leaps and bounds and it\u2019s easy to see why. Its versatility allows marketers to do things they\u2019ve previously never done before and at a fraction of the effort or spend.<\/p>\n<p>Learn more about <a title=\"Programmatic Advertising Dallas\" href=\"https:\/\/www.digitalsuccess.us\/programmatic-advertising-services-dallas.html\" target=\"_blank\" rel=\"noopener noreferrer\">how programmatic advertising works<\/a> here, in our detailed description of the marketing strategy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019ve used the internet in the past 5 years, then programmatic advertising has already affected you and you didn\u2019t even know it. This shouldn\u2019t come as a surprise, though, since marketers spent $22.10 billion in 2016 on this marketing channel alone. Here\u2019s why. What is programmatic advertising? Programmatic advertising is the online ad bidding [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":1379,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8],"tags":[1320,1323,1322,1316,1280,459,1318,1319,1317,1321,1296,1274,1324,1325,1285,1279],"class_list":["post-1337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-paid-media-advertising","tag-contextualcategory-targeting","tag-crm-targeting","tag-data-onboarding","tag-future-of-online-ads","tag-geo-fencing","tag-geo-targeting","tag-ip-targeting","tag-keyword-search-targeting","tag-marketing-strategy","tag-persona-targeting","tag-programmatic-ad-buying","tag-programmatic-advertising","tag-programmatic-advertising-campaign","tag-programmatic-media-buying","tag-site-retargeting","tag-virtual-fencing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Programmatic Advertising and Why Did Marketers Spend $22 Billion on it Last Year?<\/title>\n<meta name=\"description\" content=\"Programmatic advertising is so hot right now in digital marketing, with ad spending expected to reach $22 billion this year, according to eMarketer\u2014 that\u2019s nearly a 40 percent increase from last year. But only 45 percent of people who use programmatic advertising actually understand the concept behind it, according to an IAB report cited by Econsultancy. Let&#039;s discuss in detail how it can benefit your business.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.digitalsuccess.us\/blog\/programmatic-advertising-future-of-online-ads.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Programmatic Advertising and Why Did Marketers Spend $22 Billion on it Last Year?\" \/>\n<meta property=\"og:description\" content=\"Programmatic advertising is so hot right now in digital marketing, with ad spending expected to reach $22 billion this year, according to eMarketer\u2014 that\u2019s nearly a 40 percent increase from last year. 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But only 45 percent of people who use programmatic advertising actually understand the concept behind it, according to an IAB report cited by Econsultancy. Let's discuss in detail how it can benefit your business.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.digitalsuccess.us\/blog\/programmatic-advertising-future-of-online-ads.html","og_locale":"en_US","og_type":"article","og_title":"What is Programmatic Advertising and Why Did Marketers Spend $22 Billion on it Last Year?","og_description":"Programmatic advertising is so hot right now in digital marketing, with ad spending expected to reach $22 billion this year, according to eMarketer\u2014 that\u2019s nearly a 40 percent increase from last year. 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