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Programmatic Advertising And How It Works

This infographic has been created by programmatic advertising marketing specialist Ranwell Productions. The infographic provides an overview of how the programmatic advertising media buying works, as well as the process of how the ads are delivered.

Programmatic advertising is the latest trend in digital advertising. It is taking the marketing world by storm right now. The trend for this form of advertising is really peaking as businesses understand how targeted the ads are and how effective they are for returning value with return on investment.

How Does Programmatic Advertising Work?

It all starts on the Internet. Webpages around the world collect data of individuals behaviour, interests and likes. Once this information has been collected it is passed on to an auction platform where that specific individual can be sold at auction and interested businesses can bid for their ad to appear on those specific individuals connected devices.

Let’s say for example, a user visited a page on a specific website that was discussing battery-powered bicycles. This user would then be tagged as someone that was interested in battery-powered bicycles. This information could be passed on to the auction platform and perspective companies that sold battery-powered bicycles could bid for the advertising space. The company that won the bid would then have their ad appear on those individuals’ connected devices.

Companies would be interested in this because they are not wasting ad spend and paying for their ad to appear in front of people that were not interested in battery-powered bicycles. Now, they can have it appear in front of their

specific target market. The conversion rate of these ads is so much higher than conventional ads and the value of the advertising is much better as a result.

There are different types of connected device, these include television, radio as well as digital billboards. The way this works is that specific connected device channels have ads appearing on the side. These ads will be the programmatic ads that these businesses are bidding on.

That’s how programmatic advertising works. Obviously, this is a very simplistic overview, but it gives you an idea of the process and how successful the potential is for businesses that are running these ads.

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