Programmatic advertising attracts the attention of a lot of marketers in the ad tech space. There are abundant discussions among marketing enthusiasts about how programmatic advertising platforms are transforming the digital landscape and their effectiveness as well.
While some of the discussions are indeed informative, many also revolve around myths. Dispelling these misconceptions is vital to understanding the true potential of programmatic advertising. Here we have addressed five common misconceptions surrounding programmatic ads.
Myth No 1. Programmatic And RTB Are The Same Thing
Some players in the ad tech space assume programmatic buying and real-time bidding are interchangeable. Well, that is not the case. While programmatic is the automated buying of ad space, real-time bidding is a type of programmatic buying that is facilitated by a real-time bidding auction.
RTB can be referred to as an online auction marketplace that allows you to buy and sell impressions in real-time. Programmatic, by automating certain tasks in the ad buying process, allows ad buyers to make sophisticated strategies, conduct better analysis, and also pivot these strategies when needed.
Whereas, real-time bidding, through an automated bidding mechanism, allows publishers to enhance the value and price of their ad space, and assists advertisers to show efficient ads to the right kind of audience, thereby reducing wasted or unmonetized impressions. Hence, it can be said that RTB is a subset of Programmatic.
Myth No: 2 Only Long-Tail Inventory Is Available Through Programmatic
Many believe that only long-tail or remnant inventory is available via programmatic advertising. But this is far from the truth. With the introduction of advanced bidding techniques like header bidding, advertisers can now cherry-pick impressions at the highest priority.
This form of programmatic implementation lets publishers optimize their revenue by taking the best price available for an impression. Hence, if a higher CPM is offered via programmatic than a direct sale, then the publisher’s ad server, if participating in the auction, can choose to monetize via this medium.
Myth No. 3. Programmatic Inventory Only Consists Of Video And Display Options
Initially, programmatic advertising involved only video and display. However, with technological advancements, more ad formats have become a part of the programmatic inventory. Now, you can bid for other ad options like search ads, social ads, native ads, or even digital out-of-home ads.
Recent advancement in this space – Connected TV that reaches out to the audience via OTT platforms, and audio streaming platforms like Spotify, which are now considered rich sources of inventory.
We are rapidly reaching a stage where advertisers bid for multi-format and multi-device ad inventory – including being able to bid for space on digital billboards, audio platforms, and wearable displays.
Myth No. 4. Softwares And Machines Do All The Work
The name, programmatic, might suggest that intelligent algorithms and machines that perform all tasks. But that is not the case. The human element in digital marketing remains integral as building a strategy to execute and optimize ad campaigns still requires expertise that only marketers can offer.
Hence, it is wise to look for and partner with an ad network that specializes in programmatic advertising where optimization experts can chart out strategies that get you the best results and boost your revenue. Only if you marry technological advancements with human intervention would you make the most of programmatic advertising.
Myth No. 5. Programmatic Is Fraught With Ad Fraud
We haven’t yet reached a stage in the digital ecosystem where ad fraud would not exist. However, is it most prevalent in programmatic? Not really! Programmatic buying is considered to be one of the most transparent mediums of buying and selling ad inventory, which is why the chance of ad frauds is way less than any other generic market buy.
However, experts suggest that as long as proper precautions like automated pre-bid filtering, etc. are taken, chances of ad fraud are significantly less. Working with a reliable ad partner that champions transparency in programmatic advertising and dealings is therefore suggested in order to stay clear of any bad players.
The complex world of digital marketing can be confusing and difficult to keep up with. However, before trying out programmatic, it is important to bust the myths surrounding programmatic marketing. With accurate knowledge about technologies, and by partnering with a programmatic advertising platform that suits your needs, you can make the most of this advanced advertising technique.
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