Programmatic advertising involves the automated purchasing and selling of online advertisements in real-time.
Programmatic advertising has revolutionized ecommerce by dramatically streamlining the online advertising process. It automates the decision-making process of media buying by targeting specific audiences and demographics, thereby eliminating the traditional method of buying and selling ads one by one. It encompasses activities like real-time bidding (RTB), direct and guaranteed buys, private marketplaces (PMP), and automated reserved types that are collectively aimed at enhancing marketing precision and efficiency.
For instance, a shoe retailer aims to promote a new shoe line to women aged 18-35, residing in New York, who have shown interest in sports shoes in the last 30 days. The retailer sets a specific advertisement budget and enters these details into a Demand Side Platform (DSP). The platform then starts bidding on relevant ad spaces in real-time whenever someone fitting the criteria visits a web page.
Programmatic advertising is important for several reasons:
Improving programmatic advertising involves:
Several factors impact the effectiveness of programmatic advertising, including data quality, the precision of targeting parameters, the quality of creative content, loading time, and ad placement.
Programmatic advertising impacts several ecommerce metrics. It can boost conversion rates, increase average order value (AOV), and enhance customer lifetime value (CLTV) by targeting the right audience with personalized advertising.
Paid Impressions are the total number of times your ads reached your target audience.
Post-purchase email engagement is about sending targeted emails to customers after a purchase, to strengthen relationshi...
A Paywall is a feature implemented to restrict access to digital content, requiring users to pay for access.
A push notification is a brief alert or message sent to a device's notifications bar without user initiation.
Private Marketplace (PMP) is an exclusive trading space offering premium programmatic ad inventory.
Price elasticity of demand, PED, measures a product's quantity demanded response to price changes.