6 reasons to start programmatic advertising now

Are you looking for a large reach and do you want to make an impact? Then programmatic advertising is the right choice for you. Programmatic advertising is now an integral part of the online marketer’s toolbox. But what exactly is programmatic advertising? And how and when do you use it? Let us show you around!

Here you can read everything you need to know about programmatic advertising. We’ll look at two common systems for display advertising and dive into their extensive capabilities and differences. We help you determine when to choose programmatic or the traditional Google Display Network (GDN). Read along!

Wat is programmatic advertising?

Let’s start with the definition of programmatic advertising. Programmatic advertising is the targeted and automated buying of advertising space on websites and apps. That’s it, really. So how is this different from GDN? 

Online advertising works on the ‘waterfall principle’. The best advertising positions are sold directly with guaranteed deals you make with large (Dutch) publishers like DPG Media and Mediahuis. With programmatic advertising you have the opportunity to advertise on these high quality websites (like ad.nl or volkskrant.nl) and positions at the top of the pyramid. 

When you get started with GDN, only ad space is left on websites at the bottom of the pyramid. All premium placements have already been given away to guaranteed and preferred deals. So that’s where the advantage of programmatic advertising lies: you are able to advertise on better websites. 

How can I use programmatic advertising?

This all sounds like music to your ears. But how do you use programmatic advertising? You deploy programmatic advertising through a demand-side platform (DSP). The best-known example of a DSP is DV360, part of the Google Marketing Platform. With a DSP you manage campaigns and buy ad space in ad auctions. 

However, using a DSP is not for everyone. You need specialised knowledge to turn the knobs. The learning curve is steeper than with Google Ads. It takes a relatively long time to master a DSP like DV360. One wrong setting and your entire advertising budget can go up in smoke in seconds.

What is the power of programmatic advertising?

This was just the tip of the iceberg. Programmatic advertising via DV360 is a powerful tool, if used properly. Are you, for example, only planning to use in-market and affinity targeting? Then in most cases you can get away with the Google Display Network via Google Ads. Especially if you have a small budget and little specialist knowledge of a DSP. 

When is programmatic advertising more valuable than GDN? We’ve laid that out for you:

• High quality ad space for a fixed CPM and no hassle;
• Rich media and HTML5 formats to make your brand stand out;
• Contextual targeting to better reach your target group;
• Extended reach;
• Maximum control over the frequency of your ads;
• Native ads that perfectly match the look & feel of a website.

Reason 1: premium inventory

With a DSP, like DV360, you have access to Private Marketplaces (PMPs). Such a PMP is a marketplace where large publishers make their ad space available. This premium advertising space is only accessible to advertisers who have obtained access with a special Deal ID. This way you can be sure that you are purchasing ad space for a fixed CPM. Cool, right?

Reason 2: Rich Media

Programmatic allows you to use formats that are not possible within GDN. These so-called Rich Media formats are perfect for building brand awareness. Think of Automatic Page Takeovers (APTO) or a mobile inter scroller. 

These formats are designed and developed in HTML5 and give creative people all the freedom they need to make your brand stand out. Need inspiration? Take a look at Google’s Rich Media Gallery.

Reason 3: targeting

Through DV360, it is possible to focus on the content and metadata of a website, using keywords and other indicators. This is a feature that is not available in Google Ads. In addition, you can make use of third party data. Think about target groups that are interested in soccer.

Reason 4: greater reach

With the Google Display Network you reach about 70% of the Internet. YouTube and Gmail are also covered by GDN. The advantage of GDN is that you can generate a substantial reach with a relatively small budget. In contrast, through DV360 you have access to all kinds of auctions, such as Rubicon, Adform, Xandr, etc. This amounts to about 90% of the Internet. 

Reason 5: frequency capping

How often do you want a user to see the same ad? It is important to keep the frequency of your ads in mind. This way you avoid the so-called ad fatigue and increase your unique reach. In both Google Ads and DV360 it is possible to set a daily cap. Sometimes it’s better to go for a low frequency and other times a high frequency. 

When to choose which ad frequency?

The rule of thumb is: the higher the frequency, the lower the CTR (read: the more annoying, the less people click on it). For ongoing retargeting, we recommend GDN. But, in some cases, a higher frequency is actually better: for example, for retargeting on users with an abandoned shopping cart. In this case, programmatic buying achieves better results.

Reason 6: native ads

Did you know that people are twice as likely to click on a native ad than a normal display banner? Although Google Ads also supports native ads via Responsive Display Ads, you can reach your target group more effectively with DV360 natives. 

In Google Ads you have no influence whether an ad is served as native or display. Because in DV360 you make agreements with publishers about where and how your ads are served, you do have influence. Do you want to focus on native advertising? Then go for DV360!

Now what? How do I choose the right display platform for my business?

This, of course, is the question we all want an answer to. Do you want to focus on brand awareness and only be shown on quality websites? Then programmatic advertising is the display platform for you! Is convenience paramount and would you rather not spend more than 5 euros per day on display? Then choose GDN and Google Ads. In no time at all you can create Responsive Display Ads and have customer-ready affinity- and in-market target groups at your disposal.

So you choose programmatic if you:

• Budget. If you have a large budget to advertise with in the long term. 
• Creatives. If you are looking for complete freedom in your creative expressions. You can go crazy with different Rich Media formats, such as an APTO and inter scroller. 
• Targeting. If you want to sharpen your targeting by specific placements. With DV360 you have access to premium inventory through guaranteed deals, PMPs and Deal IDs. This gives you the certainty of paying a fixed CPM and always being served.

Do you have questions or do you want to brainstorm with us? Contact Martijn Berns and join us for lunch!