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What is programmatic buying?   

Programmatic buying is a growing form of digital advertising. According to some projections, this type of advertising was expected to account for 86.5% of all digital ad spending in the U.S. by 2021.  

What is programmatic buying?

This is a form of advertising that is rapidly gaining in importance and one that marketers need to look into and consider for their organization! 

Why is it so relevant in today’s multi-channel world? It’s because this technique allows for the automation of advertising space purchases in real time. Based on marketing data, this type of advertising offers a high rate of return on investment through its ability to do ultra-precise targeting. It takes into account several key elements such as age, interests and geographical location. 

How exactly does it work?

Before the programmatic buying algorithm can do its job, you must determine your strategic objectives, your maximum budget and your target consumers.  It is also at this stage that it is necessary to identify the adequate and relevant KPI (key performance indicators) to measure your results. 

It is after the completion of these steps that the placement can be done automatically. The programmatic buying algorithm performs an in-depth analysis of the different types of placements and their relevance to your advertising and your pre-established goals. The algorithm is able to determine which opportunity would have the highest return on investment for you based on the available space, your budget and your goals. 

If you sell specialized products for performance road bikes, the algorithm may determine that, based on your offer, your ad should be placed on a particular website where there is a community of road bike enthusiasts.  

The algorithm will then position your campaign on that site based on the available space. If your objectives are oriented towards reaching a certain age group such as millennials, the system could detect a concentration of your target audience on a social platform such as TikTok and then place your campaign there automatically. 

The effectiveness of this type of placement lies in its efficiency, as it really considers all the possible places to publish your campaign and chooses the one on which your advertising message will be seen by the right people.

Why is this type of advertising relevant today?

Marketing data is the foundation of all good advertising strategies. A huge advantage of automated ad buying is the amount of testing that can be done before, during and after the launch of your campaign.   

Campaigns made with programmatic buying are updated in real time! You don’t have to wait until your ad is finished to optimize it and ensure better results!   

The algorithm relies on several detailed pieces of information to ensure the most appropriate placement based on elements such as users’ interests, locations and buying behaviors. This is an optimal way to allocate your resources, because in addition to offering very precise targeting, your campaigns can be optimized in real time or placed on another platform depending on its performance!   

This promotes a better return on investment of your various marketing efforts by allowing your teams to focus on strategy and not on media placement. Since this part of the work is automated, it eases the workload for your employees allowing them to focus on other tasks and improve the efficiency of your organization. 

Programmatic buying is a strategy to really consider, as it relies on real-time data to place and optimize your campaigns before, during and after their diffusion. The algorithm of programmatic buying allows for a better allocation of your time and budget through the use of technology. The high-performance algorithm allows for targeted and precise targeting, a very interesting option in terms of return on investment and overall performance of your campaigns. 


Questions to ask yourself

  • Could my company benefit from programmatic buying?   
  • Does this strategy align with my advertising goals?
  • What is the relevance of automating some of the advertising work?

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    Marketing definition. (n.d). Programmatic buying – Marketing definitions :The illustrated encyclopedia of marketing. Online.

    Atkins, B. (2021, June 29).What Is Programmatic Marketing, And How Can It Help Your Company?. Online.

    SETUPAD Inc. (2022, February 17).23 Key Digital Advertising Trends and Stats for 2022. Online.

    Kabadaian, H. (2020, May 22).The What, Why and How of Programmatic Advertising (and 5 Tips on Using It). Entrepreneur. Online.

    Bell Media. (2020, November 24). Programmatic advertising. Online.

    Godin, C. (2021, November 23). Why prioritize marketing data? Online.

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    Caroline Godin

    Présidente et fondatrice chez Billy.Social

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