Programmatic Advertising Vs Programmatic Buying
Management Summary
Siegfried Stepke already has what these keywords mean in his blog post“What exactly is programmatic marketing and programmatic buying?”answered. Today, however, we are interested in where these technical terms differ from each other.How does programmatic advertising differ from programmatic buying or are these terms just synonyms for programmatic marketing?
Differentiation of terms
What connects these three terms is the word “programmatic”, which means something likeautomated. Translated, our three keywords mean automated advertising, automated purchasing and automated marketing.
Programmatic marketing
The latter is the umbrella term for ALL marketing measures that can be automated, i.e. controlled automatically by rules and algorithms. SomeExamples:Target groups for a specific advertising messageautomaticallyrecognize the right advertising medium with the right placement and appropriate pricing strategyautomaticallychoose or advertisingautomaticallyPlay out at the right time to as many people in the target group as possibleautomaticallyto reach.
Programmatic buying
Programmatic buying is a sub-area of programmatic marketing and describes automated shopping on the Internet, which is not just limited to advertising but can be anything. A classic example is real-time bidding (RTB), in which advertising space is sold to advertising bidders in real time. But keywords are also sold automatically via online exchanges. A more unconventional example in which programmatic buying has been used for years, especially in large companies, is warehouse logistics. Nowadays, goods are automatically reordered by the warehouse system as soon as a certain stock of goods has been used up.
Programmatic advertising
But what is programmatic advertising? Programmatic advertising is exactly the buzzword that is often confused with programmatic buying or even programmatic marketing. Programmatic advertising is about automating advertising –and just advertising– to use. Of course, programmatic buying, the automatic purchasing of advertising, plays an important role.
However, programmatic advertising means more than just purchasing advertising, namely the use of advertising platforms such as tag management systems (TMS), site content decision platforms, demand side platforms (DSP) andData Management Platforms (DMP). On the one hand, these tools enable better advertising planning and success measurement for the marketer and, on the other hand, placing advertising is more effective, faster and easier. In addition, it is also a sub-area of programmatic marketing and, in terms of hierarchy, on the same level as programmatic buying.
Conclusion
Based on this knowledge, the question posed in our title can now be answered:Programmatic advertising is NOT a synonym for programmatic buying and is NOT at all synonymous with programmatic marketing.Here is an overview again: Programmatic marketing is the umbrella term for all automated marketing measures. Programmatic buying is automated shopping on the internet. And programmatic advertising is the automated display of advertising – including everything that goes with it: shopping, planning, tracking, etc.
