{"id":15369,"date":"2019-07-23T12:04:53","date_gmt":"2019-07-23T10:04:53","guid":{"rendered":"https:\/\/yieldbird.com\/?p=15369"},"modified":"2024-07-22T19:27:14","modified_gmt":"2024-07-22T17:27:14","slug":"google-ads-vs-programmatic","status":"publish","type":"post","link":"https:\/\/yieldbird.com\/research-hub\/google-ads-vs-programmatic\/","title":{"rendered":"Google Ads vs. Programmatic"},"content":{"rendered":"\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\">Although this is probably hard to believe, Google\u2019s AdWords (now known as Google Ads) appeared as early as 2000, which would mean that this ecosystem is already of full legal age. In the beginning, advertisers were given the ability to target ads using keywords or excluding selected ones. Settlements were based on <a href=\"https:\/\/yieldbird.com\/ecpm-rcpm\/\">CPM<\/a>, and the statistics available to the advertisers provided only basic metrics such as CTR or the number of impressions. Since then, AdWords has come a long way, so the once available possibilities were merely a foretaste of what it offers advertisers today.<\/p>\n\n\n\n<h2 style=\"font-size: 20px;\">Programmatic vs Google Ads<\/h2>\n\n\n<p><br><\/p>\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\">Meanwhile, competitive platforms and ecosystems would appear (and disappear) \u2013 more or less used by a wider audience, but for a long time, <strong>AdWords<\/strong> was the king. Until <strong>Programmatic<\/strong> arrived. It used <a aria-label=\" (opens in a new tab)\" style=\"color: crimson;\" rel=\"noreferrer noopener nofollow\" href=\"https:\/\/pl.wikipedia.org\/wiki\/Real-time_bidding\" target=\"_blank\">Real-Time Bidding<\/a>, which was created in the US in 2009, and since then, year after year, it has been capturing a larger and larger chunk of the advertising market. It is so effective at this that, in 2018, 83% of display advertising purchases in the United States, worth almost $50 billion, <a aria-label=\" (opens in a new tab)\" style=\"color: crimson;\" rel=\"noreferrer noopener nofollow\" href=\"https:\/\/www.emarketer.com\/Chart\/US-Programmatic-Digital-Display-Ad-Spending-2016-2021-billions-change-of-total-digital-display-ad-spending\/227736\" target=\"_blank\">were made programmatically<\/a>. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/yieldbird.com\/wp-content\/uploads\/2019\/07\/0149-Ad-Word5-05-963x1024.png\" alt=\"Google Ads vs. Programmatic\" class=\"wp-image-15474\" width=\"448\" height=\"476\" srcset=\"https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word5-05-963x1024.png 963w, https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word5-05-282x300.png 282w, https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word5-05-141x150.png 141w, https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word5-05-768x817.png 768w, https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word5-05.png 1958w\" sizes=\"auto, (max-width: 448px) 100vw, 448px\" \/><\/figure><\/div>\n\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\">In Poland, the market is not that mature yet, but we can no longer say that it is in its infancy. In 2018, it already constituted 31% of the market, and it is recording growths of several dozen percents year-on-year. It is expected that in 2020 this will be as much as 46%. In our opinion, this is only the beginning and <strong>Programmatic has the potential to become the first choice for most advertisers in Poland too<\/strong>. <\/p>\n\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\">But, in order not to leave you asking \u201cwhy?!\u201d, in the next part of the text we will compare the possibilities of both ecosystems and try to explain a bit the reasons for which advertisers more and more often decide to shift their advertising budgets towards Programmatic.<\/p>\n\n\n\n<h3 style=\"font-size: 20px;\">Inventory\/reach<\/h3>\n\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\"><br>Currently, <em>Google Ads<\/em> offers access to all the pages linked to the Google display network system which, as of now, is more than 2 million pages that reach 90% of Internet users with their content. Not bad. However, <em>Programmatic<\/em> does not limit itself to a single inventory provider. It offers access not only to Google\u2019s advertising network (through the Display&amp;Video360 platform), but also to <a aria-label=\" (opens in a new tab)\" style=\"color: crimson;\" rel=\"noreferrer noopener\" href=\"https:\/\/yieldbird.com\/google-ebda\/\" target=\"_blank\">other ad exchanges<\/a> (such as AppNexus, AdForm, Rubicon Project, and recently also Amazon which wants to take over a part of the programmatic market with its own DSP), thanks to which the available inventory is much larger. Additionally, some publishers offer their most \u2018exclusive\u2019 advertising spaces (for example, ads on the home page) only if the purchase is made directly from the publisher (direct buying) or through advanced purchase models available in Programmatic.<\/p>\n\n\n\n<h3 style=\"font-size: 20px;\">Targeting<\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/yieldbird.com\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-01-1024x640.png\" alt=\"Google Ads vs Programmatic\" class=\"wp-image-15399\" width=\"234\" height=\"146\" srcset=\"https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-01-1024x640.png 1024w, https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-01-300x188.png 300w, https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-01-150x94.png 150w, https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-01-768x480.png 768w\" sizes=\"auto, (max-width: 234px) 100vw, 234px\" \/><\/figure><\/div>\n\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\"><br>Both <strong>Google Ads and Programmatic<\/strong> offer very extensive capabilities of <a href=\"https:\/\/yieldbird.com\/targeting-in-programmatic\/\">targeting<\/a>. These include such options as:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><b>Contextual targeting<\/b> \u2013 via keywords or a subject connected with advertising. In this case, the ads will be displayed on any related websites;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><b>Targeting based on the interests of customers and their activities<\/b> \u2013 the ads will be targeted at people with specific interests, shopping habits, or those who are actively searching for\/considering the purchase of products or services that are similar to those offered by the advertiser;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><b>Demographic targeting<\/b> \u2013 gender, age, location, language, and much more. There is a myriad of possibilities, and we will probably describe them in a separate text. <\/li><\/ul>\n\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\">But while <strong>Google Ads<\/strong> uses \u2013 for targeting \u2013 only the data that it collects itself (yes \u2013 they are of good quality, and yes \u2013 the reach of their collection is wide), <strong>Programmatic<\/strong> again goes one step ahead by allowing the use of data from external providers, the so-called 3rd party data. These are usually collected by specialized DMPs (Data Management Platforms) that allow advertisers to use data about, e.g., users who read content devoted to stock market information, users who cook soups, or users who live in locations where temperatures exceed 25\u2103. And even though the additional cost of such data may be a disadvantage (most often, a predetermined rate is added to the cost of purchasing each thousand of views using such data), the possibilities of reaching the customers you are actually interested in grow significantly.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<!-- Begin Mailchimp Signup Form -->\n<link href=\"\/\/cdn-images.mailchimp.com\/embedcode\/horizontal-slim-10_7.css\" rel=\"stylesheet\" type=\"text\/css\">\n<style type=\"text\/css\">\n\t#mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; width:100%;}\n\t\/* Add your own Mailchimp form style overrides in your site stylesheet or in this style block.\n\t   We recommend moving this block and the preceding CSS link to the HEAD of your HTML file. *\/\n<\/style>\n<div id=\"mc_embed_signup\">\n<form action=\"https:\/\/yieldbird.us7.list-manage.com\/subscribe\/post?u=0a65a0626fcc516279eb5d544&amp;id=53c5dbaf01\" method=\"post\" id=\"mc-embedded-subscribe-form\" name=\"mc-embedded-subscribe-form\" class=\"validate\" target=\"_blank\" novalidate=\"\">\n    <div id=\"mc_embed_signup_scroll\">\n\t<label for=\"mce-EMAIL\">Would you like to get the latest AdTech &amp; Digital Marketing news &amp; insights delivered right to your inbox every Friday? Subscribe to The Yieldbird Digest!<\/label>\n\t<input type=\"email\" value=\"\" name=\"EMAIL\" class=\"email\" id=\"mce-EMAIL\" placeholder=\"email address\" required=\"\">\n    <!-- real people should not fill this in and expect good things - do not remove this or risk form bot signups-->\n    <div style=\"position: absolute; left: -5000px;\" aria-hidden=\"true\"><input type=\"text\" name=\"b_0a65a0626fcc516279eb5d544_53c5dbaf01\" tabindex=\"-1\" value=\"\"><\/div>\n    <div class=\"clear\"><input type=\"submit\" value=\"Subscribe\" name=\"subscribe\" id=\"mc-embedded-subscribe\" class=\"button\"><\/div>\n    <\/div>\n<\/form>\n<\/div>\n\n<!--End mc_embed_signup-->\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 style=\"font-size: 20px;\">Google Ads vs Programmatic &#8211; Advertising formats<\/h2>\n\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\"><br>In short: <b>text ads, display ads, video ads, html5 ads, and app ads<\/b>. These are the formats that Google officially offers in its Google Ads. Also, available are the rich media formats, but a significant number of publishers \u2018associated\u2019 under AdSense simply do not support this technology, which narrows down the available inventory.<\/p>\n\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\">In the programmatic purchase model, rich media, as well as formats such as screenings and native advertising (which until recently were used rather in non-standard campaigns), are becoming more and more common. Although it should be noted that they are available rather in the more advanced purchase models in Programmatic. <\/p>\n\n\n\n<h3 style=\"font-size: 20px;\">Reporting<\/h3>\n\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\"><br><strong>Google Ads allows reporting the statistics of the currently-run campaigns<\/strong>, with a delay ranging from a few hours to about a day for some of the metrics. Because Programmatic uses Real-Time Bidding, the <strong>reporting of programmatic campaign results is available practically the next minute<\/strong>. The monitoring of the effectiveness of a campaign conducted in Programmatic offers a significant advantage in this case \u2013 it enables a more effective optimization of activities. <\/p>\n\n\n\n<h3 style=\"font-size: 20px;\">Settlement models<\/h3>\n\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\"><br>In this area, Google Ads offers a little more variety of available options. When running a campaign, you can choose from the following models: <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/yieldbird.com\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-04-1024x640.png\" alt=\"Programmatic vs Google Ads\" class=\"wp-image-15397\" width=\"245\" height=\"153\" srcset=\"https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-04-1024x640.png 1024w, https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-04-300x187.png 300w, https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-04-150x94.png 150w, https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-04-768x480.png 768w\" sizes=\"auto, (max-width: 245px) 100vw, 245px\" \/><\/figure><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li><b>CPM (Cost Per Mille)<\/b> \u2013 a fixed rate for every thousand views of an ad<\/li><li><b>CPC (Cost Per Click)<\/b> \u2013 a fixed rate for each time a user clicks your ad<\/li><li><b>CPA (Cost Per Action)<\/b> \u2013 you pay for each predefined action performed by the user, and this action is up to you \u2013 it can be a purchase of a product or subscription to your newsletter.<\/li><\/ul>\n\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\">In Programmatic, a settlement is done only in the CPM model but calculated in a slightly modified way, that is: <b>CPM = (expenses\/views) x 1000<\/b>. This is due to the fact that each view can have a different rate because you bid for each of them separately. However, you must remember that although the purchase takes place in CPM, the platforms on which you make the purchase enable the user to optimize the expenses depending on the selected indicators \u2013 you may, for example, minimize the CPC or CPA rate.<\/p>\n\n\n\n<h3 style=\"font-size: 20px;\">Costs and entry threshold<\/h3>\n\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\"><br>The last (but not least) issue that we would like to compare is the so-called entry threshold in order to be able to place ads in a specific ecosystem. And although Programmatic really does potentially allow you to display your ad even on the home page of economist.com (which would, however, entail certain costs), you also very often have to meet the requirement of minimum monthly expenses on your chosen platform. <\/p>\n\n\n\n<div class=\"wp-block-media-text alignwide\" style=\"grid-template-columns:41% auto\"><figure class=\"wp-block-media-text__media\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"640\" src=\"https:\/\/yieldbird.com\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-03-1024x640.png\" alt=\"Programmatic Advertising vs Google Ads\" class=\"wp-image-15395 size-full\" srcset=\"https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-03-1024x640.png 1024w, https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-03-300x187.png 300w, https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-03-150x94.png 150w, https:\/\/yieldbird.com\/research-hub\/wp-content\/uploads\/2019\/07\/0149-Ad-Word-03-768x480.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><div class=\"wp-block-media-text__content\">\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\">Unfortunately, equally often these are amounts of the order of a few (or a dozen or so) thousand PLN, which for a small advertiser may be a threshold impossible to cross, though there are some niche platforms without such requirements (unfortunately, they have a lot of restrictions). <\/p>\n<\/div><\/div>\n\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-normal-font-size wp-block-paragraph\">In Google Ads there is no such problem \u2013 the platform allows to buy advertising for any amount of money, and the expenses can be scaled proportionally to your needs.  To sum up, <strong>Programmatic offers much more possibilities than Google Ads<\/strong>, starting from the possibility of reaching a wider market with a more detailed targeting of potential customers and ending with a more effective optimization. After adding up all the advantages, it becomes clear why more and more advertising budgets will be shifted towards this ecosystem \u2013 by 2020, the market share of Programmatic is expected to be over 45%. <br><\/p>\n\n\n","protected":false},"excerpt":{"rendered":"<p>Although this is probably hard to believe, Google\u2019s AdWords (now known as Google Ads) appeared as early as 2000, which would mean that this ecosystem is already of full legal age. In the beginning, advertisers were given the ability to target ads using keywords or excluding selected ones. Settlements were based on CPM, and the [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":15475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[28],"tags":[],"content-category":[],"class_list":["post-15369","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ad-tech"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/yieldbird.com\/research-hub\/wp-json\/wp\/v2\/posts\/15369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yieldbird.com\/research-hub\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yieldbird.com\/research-hub\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yieldbird.com\/research-hub\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/yieldbird.com\/research-hub\/wp-json\/wp\/v2\/comments?post=15369"}],"version-history":[{"count":1,"href":"https:\/\/yieldbird.com\/research-hub\/wp-json\/wp\/v2\/posts\/15369\/revisions"}],"predecessor-version":[{"id":33466,"href":"https:\/\/yieldbird.com\/research-hub\/wp-json\/wp\/v2\/posts\/15369\/revisions\/33466"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yieldbird.com\/research-hub\/wp-json\/wp\/v2\/media\/15475"}],"wp:attachment":[{"href":"https:\/\/yieldbird.com\/research-hub\/wp-json\/wp\/v2\/media?parent=15369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yieldbird.com\/research-hub\/wp-json\/wp\/v2\/categories?post=15369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yieldbird.com\/research-hub\/wp-json\/wp\/v2\/tags?post=15369"},{"taxonomy":"content-category","embeddable":true,"href":"https:\/\/yieldbird.com\/research-hub\/wp-json\/wp\/v2\/content-category?post=15369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}