Differences between programmatic advertising, SMM and contextual advertising

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Mimakte
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Differences between programmatic advertising, SMM and contextual advertising

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What are the fundamental differences between programmatic and SMM?

SMM (social media marketing) is a method of promoting a brand in the online environment. The main focus here is on interaction with the target audience. Content creation, interaction with users, reviews, audience participation and increasing their commitment play a significant role. Paid promotion in social networks is often used in the SMM process.

Following the initial impression, one might think brazil mobile number list that this is the same programmatic, but the important differences are in the goals of the advertising campaign (for SMM these are followers, likes, reposts and other indirect indicators of audience engagement, for programmatic these are reach, awareness raising, traffic and conversions of media metrics), and in the specifics of the approach and optimization of marketing strategies.

What is the difference between programmatic and contextual?

Historically, programmatic has often been compared to context. However, this is considered somewhat inaccurate. Context primarily processes existing demand for keywords.

Let's say you are interested in buying a bicycle. You enter the query "Buy a bicycle", and in response you are shown an ad or come across banners with a vehicle in the GDN or YAN advertising network. Without taking into account the mechanics of retargeting, programmatic operates at the upper levels of the sales funnel and is aimed at stimulating the formation of this very demand.

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Differences between programmatic advertising, SMM and contextual advertising

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For example, when you are into sports, you are shown that it would be appropriate to buy a bicycle. Then, when you are ready to make a purchase, you are “caught” by targeted marketing campaigns using programmatic methods or through contextual advertising.

If programmatic placement on target audiences gives a higher cost per target action, you should not immediately assume that it is ineffective. It is also a mistake to believe that banner placement in the GDN or YAN network can effectively perform branding tasks without monitoring frequency, visibility and brand safety.

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Types of programmatic advertising
There are many different types of programmatic advertising, each with its own advantages and disadvantages.

Real-time bidding (RTB)
Trading in this mode, sometimes even known as open trading, is one of the oldest and most widespread forms of using Programmatic, which some even define as an analogue.

The main objective of RTB is to buy and sell media through public auctions based on real-world advertising activity. As the name suggests, the auction is open to the public, meaning all advertisers and publishers on an ad exchange, DSP/SSP, or ad platform can participate. The end result is typically hundreds of buyers and sellers competing.

Despite the minimum price set by publishers for advertising, the final cost depends on demand. The winner of the battle for the place with the highest bid gets the opportunity to show their ad to site visitors.

Benefits of Real-Time Bidding (RTB)

Modern media deal making. RTB eliminates the need for direct negotiations between advertisers and publishers, which significantly speeds up the deal process and saves human resources.

Financial benefits: Because bids are made on individual ad impressions rather than a fixed price in advance, RTB is an efficient media buying method that helps organizations avoid unnecessary expenses.

Additionally, it makes it easier to assess the actual value of each ad impression by allowing you to target your ads and only buy high-quality, high-value impressions. For partners, RTB delivers increased fill rates.

Scalability: RTB provides advertisers with access to vast advertising inventory and high reach, accompanied by unlimited growth potential.

Negative aspects:

It is not always possible to know exactly which websites your ads will be placed on. Advertisers usually have a general idea of ​​the category but not the exact location.

Because RTB relies entirely on supply and demand dynamics, it is possible that advertising slots may become unavailable due to a lack of buyers.
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