Programmatic advertising: Individualized ads in real time

Programmatic advertising refers to the automated and software-based trading of online advertisements. If, for example, a user visits a website and sees an advertisement tailored to him or her, such as an ad for shoes that he or she recently viewed on another website, this is referred to as programmatic advertising. 

The marketing goal here is to play out advertisements as effectively as possible with the least possible effort for both the provider of the online advertising space (publisher) and the provider of the advertisement (advertiser). This type of online advertising offers many advantages, particularly in local online marketing, as desired customers can be addressed individually and specifically, while at the same time benefiting from the large number of digital advertising spaces on the Internet.

How does Programmatic Advertising work?

Using various data on user behavior on the Internet, individual advertisements can be played, based, for example, on the websites previously visited by the user. By using demographic data, targeted local ads can also be displayed for a restaurant or gym near the user, for example. 

To ensure that the website visitor can see the ad tailored to him or her within a few seconds, various automated processes run in the background. In addition to the possibility of setting a fixed price for the entire booking process, with programmatic advertising it is usually the case that the price for the online ad is not set until it is delivered. This is controlled by the so-called real time bidding principle. Each advertiser is free to decide in advance how much he or she wants to spend on the online ad on the publisher's website. If a user then visits an online store, for example, and the user data matches the advertisers' criteria, the auction starts. The advertiser with the highest bid is allowed to advertise his or her product on the site operator's website.

This is how Programmatic Advertising supports local marketing success

The Programmatic Advertising advertising model is becoming increasingly popular in online marketing. By delivering individualized ads in real time, Programmatic Advertising allows you to better reach your target group in local marketing. Based on available data such as interests, location or age group, users are served individually tailored ads that are highly likely to be responded to. Another advantage is the time saved by eliminating manual bookings and negotiations. Due to the high number of digital advertising spaces on the Internet, a programmatic advertising campaign can also achieve a high reach. 

If you use the Local Marketing Platform for your local marketing, you can currently book Programmatic Advertising campaigns. Feel free to contact our team at any time if you have further questions about programmatic advertising and the possible applications for your local marketing.