- Programmatic advertising vs direct buying
- How programmatic advertising automates the buying and selling of ads
In the digital marketing, manual solutions are not cost-effective anymore. Marketing technology went further a long time ago and now enable advertisers to set the most advanced campaign configurations and spot predicted result, and even more. It saves time, reduces human effort and automates routine tasks. Let’s take a closer look at differences between programmatic advertising vs direct buying.
Programmatic advertising vs direct buying
Direct buying starts from two side negotiations, including setting a price on an individual basis. Since advertisers are focused on a specific ad inventory, the result of direct media buying tends to show ads to all website visitors, which can be annoying for some of them, who are not interested in advertised product or service.
A campaign conducted in direct model can be optimized, but only after it’s finished. Direct media buying doesn’t allow to choose data provider nor have anti-fraud solution. This might cause budget waste. That is why programmatic advertising is growing so fast. According to Zenith’s report, 65% of all spendings on digital advertising will be traded programmatically this year.
How programmatic advertising automates the buying and selling of ads
Programmatic advertising is fully automated. Marketers set configurations at the beginning, adjust on-going actions if needed and admire conversion rate. All “negotiations” are happening in real-time by integrated systems, where all settings, including prices, are visible for all parties. This advertising model uses such technologies as Demand-Side Platform, Supply-Side Platform or Data Management Platform.
Thanks to the precisely chosen target audience in terms of programmatic campaign, a personalized message can be created in real-time. Moreover, data provider is easy to choose, and anti-fraud solutions will help to identify actual users to show them ads. All statistics are included in analytical reports later on.
In the infographic below we point out 8 key differences between direct and programmatic advertising buying: