Before diving into the details, let’s divide advertising into two key segments: (1) active search, and (2) other-than-search, which is sometimes generically called display ads.

Programmatic Ads are in the other-than-search segment. The two most common “bottom of funnel” goals for all ads are either leads (lead gen), or online purchases of products or services (ecommerce). There are some ad campaign types, such as Google Performance Max (PMax) that combine both active search and other-than-search tactics in a single campaign.

Other than Active Search

Other-than-search ads such as Programmatic Ads are driven by a collection of attributes and behaviors collectively called an audience. Attributes used to create audiences can include demographics, geographic location, and behaviors, past (remarketing / in-market) or present (contextual). Audiences, used individually or combined, can target customers in all stages of the purchase journey and intents. Generally, if a target customer can be described, an audience can be created to precisely target them. Ads you see in this category tend to rely on engaging images and videos more than words (ad text). These tend to have sharply: higher impressions, lower click through rates, and lower cost per click (or view). Cost per lead or per sale, and the quality of leads or Return on Ad Spend (ROAS) of those conversions can vary widely. Unlike search ads, which are more likely to be limited by search volume, the other-than-search category can be used to scale up the full funnel, from awareness to conversion actions.

Active Search

In contrast, active search involves a potential customer entering a search term (aka generally called keyword) into to a search engine. Active search is often considered the higher / purest signal of intent. It normally has higher cost per click, higher response (click through) rates, higher conversion rates, and lower cost per lead or higher ROAS. However, it is more likely to be limited in volume, especially for some higher value or niche topics, specific geographic areas, etc.

Introduction to Programmatic Ads

In alignment with the segmentation in our introduction above, programmatic advertising is in the other-than-active-search segment. It is used to buy / sell digital ad space using software and algorithms.

For example, programmatic includes streaming TV (CTV), online video, display or native ads on laptops, tablets, and mobile devices, and much more. These ad tactics show a specific user an ad, based on the defined user criteria (targeting). Further, within programmatic, we can (1) tie these tactics together across the user journey and (2) measure specific online or offline results after ad exposure: online form fills, sales, in person visits, etc. 

Using this combined programmatic ecosystem allows finding new potential customers and driving them down funnel from awareness to engagement to consideration. Whereas Active Search is more limited audience to just the consideration portion at the bottom of the funnel.

Next Steps

If you would like to have a complimentary discussion with our U.S. based team with 50+ combined years in digital advertising, contact us today. This applies whether you are especially interested in programmatic advertising or simply need to increase leads and purchases for your business in an efficient and measurable way.