Programmatic Advertising

Programmatic advertising refers to the automated buying and selling of advertising space in real time. Algorithms are used to place adverts on the most relevant websites and platforms for the respective target group in milliseconds. Programmatic advertising enables advertisers to precisely define their target groups and deliver their advertising material more efficiently by using data on users’ demographic characteristics, interests, behaviour and preferences. This leads to greater relevance of the adverts for the viewer and improved performance of the advertising campaign. The process usually involves real-time bidding (RTB), in which advertising space is sold to the highest bidder in a real-time auction. Programmatic advertising therefore involves precise targeting and efficient budget utilisation. You might also be interested in our online marketing blog post Acquiring new customers with programmatic advertising – is it possible?

To ensure the greatest possible success of your advertising campaigns, there are different approaches and channels in programmatic advertising that can be combined individually:

1. Programmatic display advertising

Programmatic display advertising involves the automated, data-based purchase of digital advertising space that appears on websites in the form of banners, images or videos. The entire delivery takes place via technology platforms (DSPs), which decide in real time where and when the adverts appear.

Possible applications:

• HTML5 banners for classic display advertising
• Native adverts that are adapted to the editorial environment in terms of appearance and content and therefore appear less intrusive
• High-impact formats with interactive elements such as gamification or local information that attract users’ attention

2. Programmatic mobile advertising

Mobile advertising plays a key role as more and more users are surfing on mobile devices. Programmatic mobile advertising makes it possible to optimise ads specifically for smartphones and tablets and display them in apps or mobile browsers. An interesting extension is the combination with digital outdoor advertising, in which mobile adverts and digital outdoor spaces are used together to increase the impact.

Advantages:

• Optimised usability on small screens
• Link with DOOH, e.g. through QR codes, for omnichannel experiences

3. Programmatic digital out-of-home (DOOH)

DOOH comprises digital advertisements that are displayed on screens in public spaces such as train stations, shopping centres or bus stops. Programmatic DOOH (pDOOH) makes it possible to control these adverts in real time and adapt them dynamically, e.g. based on the time of day, location or weather.

Advantages:

• Wide reach in highly frequented areas
• Dynamic adjustment of the advert content
• Targeted approach through precise location selection and target group segmentation

4. Programmatic audio ads

Audio advertising comprises adverts that are placed in podcasts, web radio and music streaming services such as Spotify. This form of advertising is particularly effective as it cannot be skipped and targets users while they are listening.

Advantages:

• High acceptance: audio ads are usually perceived as less annoying than visual adverts
• Targeting: Age and interest-based targeting, adapted to the listening habits of users

5. Programmatic TV

Programmatic TV expands traditional television advertising with data-based and targeted approaches. Whether via Addressable TV (ATV), where banner ads are displayed during the ongoing TV programme, or via Connected TV (CTV), where video advertising is shown on streaming platforms – programmatic TV enables a targeted approach to viewers on the big screen.

Advantages:

• High visibility on the big screen
• Reduced wastage thanks to precise targeting
• Cookies not required, ensuring data protection compliance

6. YouTube Ads

YouTube Ads offer another way to reach potential customers through targeted video advertising. There are various formats that help advertisers to place their messages effectively:

• Skippable In-Stream Ads: These ads are played before or during a video and can be skipped by the user after the first 5 seconds. Often known as TrueView ads, advertisers only pay if users continue watching after the first 5 seconds.
• Non-skippable in-stream ads: Short, non-skippable video ads that play before, during or after a video. These adverts make it possible to present the entire advertising message, as the viewer has to watch them in full. Advertisers pay per view, based on a cost per 1000 impressions.
• Bumper Ads: These six-second, non-skippable video adverts are played before, during or after videos on YouTube. They are short and concise, which helps to ensure that users do not feel disturbed.
• Sequenced video ads: Storytelling is used here, with users seeing further sequences one after the other after the first sequence of a video advert. This allows messages to be conveyed in a specific order and stories to be told step by step.

7. Programmatic retail media

Retail media utilises retailers’ online shops, apps and physical shops as advertising platforms. Advertisers benefit from the retailers’ valuable customer data, which enables them to target customers and increase the likelihood of purchase.

Advantages:

• Targeted product placement directly at the point of sale
• Indirect recommendation through the context of the retailer, which strengthens trust and increases the willingness to buy

Programmatic advertising offers numerous advantages:

• Efficiency: Automated ad buying leads to time savings and process optimisation.

• Target group accuracy: Precise targeting of adverts to specific target groups through the use of data.

• Cost-effectiveness: Budget optimisation through real-time bidding and cost-per-impression models.

• Measurability: Detailed performance analysis and tracking enable accurate measurement of campaign success.

• Flexibility: Strategies can be adapted quickly on the basis of current data.

• Reach: Access to a broad network of advertising platforms increases visibility.

• Personalisation: Adaptation of advertising messages for individual user experiences and increased relevance.