Programmatic Ads vs. Display Ads: Complete Guide For 2022
When it comes to advertising for your business, there are a ton of new ways that you can capture the attention of your target audience. Technology is constantly moving forward, meaning that new advertising methods are always emerging. Some of the most common advertising methods in recent years are programmatic advertising and display advertising. But which one would work best for your business?
What Are Programmatic Ads?
Programmatic advertising is the process of purchasing the most appropriate advertising space for your business-based data insights. It allows you to input specific parameters based on your target audience into
a Demand-side Platform which will alert the advertiser when an advertising space comes available that has a lot of traffic from that demographic.
This data is obtained from previous internet search history, social media, and location data. The advertiser can find spots based on people who are of a certain age group, sex or are interested in specific activities.
Bidding for Ad Space
Programmatic advertising allows you to bid for advertising space once you’ve found a specific advertising spot that meets with your exact requirements. Using this should ensure a higher conversion rate as it reaches more of your target audience, and it’ll cost you a little less too.
This is because you can see what other businesses are willing to bid for the space, giving you an estimated value, rather than traditional advertising methods where negotiation with a company is required. When you use real-time bidding, you will bid against other companies and the highest bid wins. This also means you can stop bidding if the price is too high without committing to a contract that will cost the earth.
Automatic Purchasing
If real-time bidding takes a little more time than you’re able to dedicate, then automatic purchasing could work a little better. This is where the company provides specific information on the exact type of customers they wish to reach and once the platform finds a space that meets these exact requirements, it will buy the space at an agreed price.
Programmatic Advertising Benefits
Programmatic advertising offers lots of benefits for the advertiser and the company selling the advertising space.
Cost-effective
Programmatic advertising means that you don’t need to negotiate on prices and have a clear view of what competitors are willing to pay for a space. This means that you’ll never over pay and can withdraw your offer at any time.
It also benefits the seller of the space as they will still get higher prices for more valued spaces.
Reaches your target audience
The extensive data that you can retrieve regarding your audience will ensure that you hit the exact right people who you know will be interested in what you have to offer to increase your conversion.
Gives trending information for changes
Any changes in the habits of your target audience will be picked up in trending information. This means that if they move location, or take on other interests, you’ll be the first to know how to tailor your advertising, giving you masses of flexibility.
Removes the need for extensive research
The masses of time and energy that you normally put into researching the habits of your audience is done for you with programmatic advertising, so you can just act on the results.
Saves time and contractual responsibilities
Negotiating prices and contractual terms for advertising spaces can be frustrating and costly. With Programmatic advertising you’ll be able to purchase an ad space with no future obligations. If it does work for you, just move on to something else.
What Are Display Ads?
Display advertising is an advert that appears specifically on websites as a banner advert or side advert. You might see a banner that looks something like the image above, which would be a typical banner design.
Display advertising space is often purchased using programmatic advertising platforms as advertisers want to ensure that their ad appears in front of people who are interested in the product.
The best way to do this is place your banner ad on a website that’s related to your product area. For example, if you sell pet food, then appears as an advert on a website about pet care would work for you. You can guarantee that your target audience is already on that website.
Using programmatic advertising will help a company to place their specific audience requirements and find the most useful advertising space for their products.
Display Advertising Benefits
Display advertising also has a wealth od benefits on top of the easy to access target market through use of programmatic advertising. Now that
you can guarantee that your ad is in front of the right people using data, you should think about how it appears to get people to click.
Brand awareness
If your product is extremely specific to a certain audience, then you’re likely to use programmatic advertising to place that same advert on multiple websites that discuss the same topic. This grows brand awareness as your customer base will start to notice your ads everywhere, giving the impression of success.
Visual appeal
The eye-catching design will remain on the page that your customer is looking at for as long as they read the website. This means you may have longer to convince them to click. If you have an appealing advert with an enticing offer, your visual appeal will automatically create trust in your product.
Cost-effective
In comparison to creating a TV advert or digital billboard, a small banner ad is relatively cheap to make and is likely to reach way more people.
Reach
Because of the sheer amount of people that use the internet, you can access a customer base across the globe. It’s a great advertising method if you have an online store or wish to cater to a global audience. The internet is the only way you’ll be able to reach everyone.
Summary?
Although often confused, programmatic advertising and display advertising are two separate concepts that can form part of one advertising campaign. Using both will help you to achieve the best return on investment.
If you’re looking for advertising space, the internet in the place to go. Your customers will all use the internet at one time or another and you need to place your ad in front of them when they do.
Using programmatic advertising to find advertising space on website related to your product and creating an eye-catching banner or carousel ad is guaranteed to increase your conversion.
