Almost everyone has experienced it in one way or another, but many people lack a clear understanding of how programmic digital advertising works. Prominent examples of mega-programmatic digital companies include Google, Facebook/Instagram (Meta), Snapchat, and TikTok. These companies possess vast amounts of data about each user, which they levearage to deliver advertisements based on their client’s goals and objectives. Programmatic advertising relies on software and algorithms to automate the buying and selling of digital ads through real-time auctions. This approach enables more precise targeting and improved ad optimization, ultimately delivering advertisers a higher return on investment.
Is Big Brother watching? After being involved in digital advertising for the last 24 years and witnessing the industry explode due to data, the answer is a resounding yes! The majority of our online activities are being tracked. Our online interactions are meticulously documented through code or cookies (an industry term) embedded in mobile and desktop devices. The information is then stored by big data companies, which subsequently resell the data to ad agencies and supply-side ad networks. These agencies and networks serve ads based on their client’s goals and objectives.
The movement to protect our data is gaining momentum data privacy concerns have taken center stage, prompting advertisers to incorporate more transaparency and control for consumerse to address these concerns. Artificial intelligence(AI) and machine learning are now being integrated into programmatic advertising to optimize campaigns, enhance targeting, and automate processes, as we seemingly transtion to cookieless online experience.
How Does It All Work?
It all starts with DATA
Have you ever searched online for shoes, a new computer, or a new car? Almost immediately afterwards, you start seeing ads following you during your online experience. This phenomenon is known as behavioral targeting, and it occurs based on the first-party data we leave behind (cookies) accross the websites we interact with. The entire transaction happens in a matter of nanoseconds, making it one of the most commonly used programmatic digital tactics.
First-party data refers to the data that a business or organization collects directly from its customers or users. It is primarily obtained through interactions such as website visits, app usage, purchases, subscriptions, surveys, or any other direct engagement with the company.
