Programmatic Advertising vs. Traditional Paid Search

Now more than ever, as the world of digital advertising becomes more complex and fast-paced by the minute, selecting the right advertising strategy is key to reaching your marketing objectives. With all of the changes to Google search that have happened over the past few years, many advertisers have needed to pivot their strategies to get the most bang for their buck out of their digital advertising spend. 

The problem is compounded by the sheer number of solutions. When there are so many avenues to choose from — programmatic search, traditional paid search, paid social, and more — how can you pick which type is best for you and your business?

For marketing professionals, business owners, and digital advertisers, choosing between programmatic advertising vs. traditional paid search depends on a lot of things, but primarily your specific marketing goals and target audience. In this article our paid search professionals will compare and contrast these two approaches, go through some of their pros and cons, and hopefully allow you to make an informed decision for your marketing strategy.

Or, if you’d rather take the guesswork out of the equation on which online advertising strategy is best for your business, get an expert opinion by giving Baal & Spots a call at (832) 662-7725. We offer tailor-made digital marketing services to ambitious businesses who are ready to take their online presence to the next level.

What is programmatic marketing?

To put it simply, programmatic search marketing involves an automated computer program that buys and sells online ads through a bidding process. 

Programmatic search advertising automates the process of buying ad space by using software instead of traditional paid search, which is done entirely by humans. This software purchases ads, such as display advertisements, in real-time across multiple platforms and leverages advanced data analytics to identify members of your target audience so the right people can see your advertisements. 

In contrast, traditional paid search, also known as pay-per-click (PPC), ads appear on search engine results pages (SERPs). For traditional paid ads, advertisers bid on keyword terms that they identify and are required to pay a fee each time a user clicks on their ad. 

Programmatic search marketing allows for quick adjustments and scalability, keeping campaigns flexible and responsive to market changes. These features make it an appealing choice for marketers seeking precise, efficient, and scalable campaigns.

Learn more about AI and digital marketing 

What is the difference between programmatic and paid search?

Placements

Traditional paid search ads are placed primarily on search engine result pages like Google, Bing, and DuckDuckGo, whereas programmatic media can be placed on any number of different channels, including audio ads (podcasts and music apps), CTV (connected TV, streaming services, etc.), and relevant websites through many types of display advertisements and native ads.

Targeting 

Targeting for paid search involves choosing keywords that your target audience will likely be searching for related to your product or service. Targeting for programmatic search, on the other hand, uses data partners to identify people based on demographics, interests, and sometimes keywords as well. Programmatic targeting is much more expansive than traditional paid search, as you can get a lot more granular with the characteristics of the person you’re trying to target.

Ad type

Paid search ads consist of text-based ads that utilize short descriptions and sometimes small graphical assets. You’ll often find them at the top of the search results page with the word “Ad” or “Sponsored” above the main text.

Programmatic search advertising, however, leverages many different types of ads, including video, audio, display, and native, and is not restricted to text only — these ads can even be interactive depending on the format. 

Cost

With traditional paid ads, you pay per click (PPC), depending on factors like your bid, competition, and quality score. With programmatic search, you may encounter either a CPC-based model, in which you pay per click, or a CPA-based model, in which you pay per action.

While traditional search advertising usually charges whenever a user clicks on your link at all, programmatic ads have the ability to charge when a user does things like watch videos, fill out forms, or spend a certain amount of time on-page.  

Programmatic advertising vs. traditional paid search: Pros and cons

What are the benefits of programmatic search?

• Automation is often more efficient: The automation involved in programmatic search advertising can significantly reduce the time and effort required for manual bidding and ad placement. This means you can allocate time and resources to other creative strategies and campaign optimization.
• Placement variety: You can place programmatic search ads in more places than just SERPs, including TV, audio mediums, and other places online.
• Advanced targeting: Due to their quality data partners, you can be very specific about the characteristics of your target audience — like what kind of pets they have or health insurance type — to reach people who are more likely to convert.
• Improved ROI: By minimizing wasted ad spend, programmatic search marketing has the potential to maximize return on investment.
• Real-time data and analytics: The ability to leverage real-time data allows for continuous optimization and improvements to make your campaign more successful overall.

What are the disadvantages of programmatic buying?

• Not beginner-friendly: Programmatic media buying requires more of an advanced strategy that focuses on brand awareness.
• Barrier to entry: Although it varies by platform, there are often large monthly minimums that can bar entry to smaller businesses that lack large marketing budgets.
• Asset requirements: To fully take advantage of these platforms, you need a variety of quality assets (like video assets and display advertisements) which take time, effort, and funds to create. 

What are the benefits of traditional paid search?

• Transparent costs: With pay-per-click models, you know exactly how much you’re spending and can budget accordingly. The costs to get ads running are typically lower at the start.
• Established methodology: Tried-and-tested strategies and techniques that have been used over time can make advertisers feel at ease, and present fewer risks.
• Campaign integration: Traditional paid search can be easily integrated with other digital marketing strategies, enhancing overall campaign effectiveness.
• Brand awareness: Traditional paid search effectively boosts your site on SERPs, which can give a major boost to brand visibility.
• Flexibility: Traditional options offer flexibility in budget allocation and ad variations, allowing you to test and optimize different approaches and, ultimately, figure out what works best for your needs.

What are the disadvantages of traditional paid search?

• Saturated market: Because any business — big or small — can do paid search ads at a low entry cost, it can be difficult for your brand to be seen in the crowded ad space.
• Costs are still high: Paid search can become expensive over time, especially in competitive industries where cost-per-click rates are high. In some industries, you will see cost-per-click rates as high as $50, $80, or even $100. 
• Continuous management: Paid ads require ongoing maintenance and attention to monitor performance and respond to market changes. It can be a little exhausting, and can take up a lot of your team’s time.
• Limited growth and outcomes: Because paid search focuses primarily on immediate results rather than long-term brand building and organic growth, you may not meet some of your big-picture goals.
• Ad blockers: Most of us use ad blockers — and so do your target customers. The growing popularity of ad blockers can reduce your ad’s visibility and overall effectiveness of your campaigns on paid search.

Is programmatic search or traditional paid search better for my business?

Now that we’ve discussed the differences between programmatic advertising vs. traditional paid search and listed out some of their pros and cons, you may still be unsure about which avenue is best for your business. 

	Programmatic Advertising	Traditional Paid Search
Reaching Your Target Audience	More ideal for products or services with a specific target market Better for identifying high-intent users through advanced data analytics Great for targeting niche audiences  through real-time bidding	Best suited for broad market appeal and immediate visibility More effective in capturing users actively searching for related keywords
Retargeting	Strong retargeting capabilities Great for social media remarketing Addresses challenges like limited targeting options on social platforms and privacy restrictions	Limited to targeting users through search queries and display network ads Less flexible in retargeting across multiple platforms
Multi-Channel Capability	Can manage various ad formats (native, display, CTV) under one platform Provides a consistent ad experience for the user Easier budget allocation across channels	Requires managing multiple vendors for cross-channel campaigns Primarily focused on search and display ads within search engine networks
Cost	Can be more cost-effective than traditional methods due to its efficiency Higher minimum spend and therefore barrier to entry	Advertisers have more control over their budget and can adjust bids based on performance metrics Known to be costly, especially when scaling
ROI	Allows you to target your target audience in a more granular way at a relatively low cost	Has a high potential for a strong return  The ability to select high-intent keywords means you can reach customers who are more likely to take action, resulting in conversions

Looking to upgrade or revamp your advertising strategy? Baal & Spots can help.

Still unsure? Then you might be in need of help from an expert. One of the main benefits of hiring a digital marketing specialist from Baal & Spots is that you can dedicate your time to actually running your business, and leave all the ad work to us. 

After getting to know you and your business’s needs, we can decide whether programmatic search advertising or traditional search advertising would suit you best. From there, we will develop a strategy, collaborate with you on ad creative, and maintain the ad health while delivering detailed reporting of the success of your online endeavors. 

“At Baal & Spots, we have been able to maximize reach and engagement for small businesses online through both paid search and programmatic search advertising strategies. Even when we start small, we find ways to utilize multiple channels to help their online presence expand, and it is really exciting to see those businesses grow!”

Maria Araiza | Paid Search Analyst at Baal & Spots

We can also do a lot more for your brand. As a full-service digital marketing agency here in Houston, we also develop both paid and organic social media strategies, provide optimized and creative content (while avoiding bad SEO), craft brand positioning strategies using search engine marketing, and so much more.

If you’re ready to take your online presence to new heights online, and are looking for a digital marketing partner, let’s talk. Baal & Spots is always here to help ambitious brands thrive.

More Helpful Articles by Baal & Spots: 

• Universal Analytics is Gone: What Should You Do Next?
• Why Digital Marketing Still Matters in a Recession
• Why Video Content Is Crucial to Your Social Strategy
• The Benefits of Maintaining Professional Website Management Services
• Is Blogging Still Relevant?