What is programmatic advertising
- June 25, 2016
- Advertising, Business advice
What is programmatic advertising? Buying and selling of Ad space.
Many marketers are still asking the question; what is programmatic advertising? Programmatic advertising is the art of automatic buying of ad space on a website with high traffic and target customers. This can be done through either bidding or buying directly from the publisher. It is an automated trading platform making the whole buying process very cheap and effective while reducing the need for human intervention in setting up processes.
It is an automated trading platform making the whole buying process very cheap and effective while reducing the need for human intervention in setting up processes. The question, what is programmatic advertising seems to have died down as compared to 2016
This is the latest digital marketing development buzz in the digital landscape creating attention because of its low cost and conversion rate. It is anticipated that more than 20% of brands are already shifting a bulk their marketing strategies and budgets towards programmatic media purchases because it removes traditional processes that consider requests for proposal solicitations. It is an automatic real-time bidding process.
It is anticipated that more than 20% of brands are already shifting a bulk their marketing strategies and budgets towards programmatic media purchases because it removes traditional processes that consider requests for proposal solicitations. It is an automatic real-time bidding process.
Programmatic advertising is becoming the holy grail of digital advertising. I wonder what will become of traditional marketing practices most marketers are very conversant with within the last five decades. However, it is not going to end manual buying many are used to but it is the way forward media buying development.
However, it is not going to end manual buying many are used to but it is the way forward media buying development. This write-up is meant to stop you from becoming one of those asking; what is programmatic advertising.
One of the best things about programmatic advertising is that; it gives media significant transparency while allowing advertisers to see where their budget is being spent in real-time.
According to guys at IAB, programmatic has two types of media buying approaches. You have Real-time Buying (RTB) and Direct buying.
Getting started With Programmatic Advertising
Programmatic advertising offers buyers the opportunity to quickly discover inventory opportunities and make deals programmatically with publishers through private auctions including preferred deals.
Private auctions and preferred deals allow buyers to access tailored and preferential deals to auction place inventory. Marketplace allows you to simply discover, negotiate and manage deals with publishers.
You can view inventory characteristics and exactly what is on offer like content articles, audiences and formats in real-time. You also have the opportunity to access publisher profile data. This data gives you a reliable and neutral measure on how suitable a publisher meets your businesses buying needs.
You can also filter and search based on the variety of dimensions to find the right business partner whose profile and or packages meets the demand for your campaigns.
How Do You Strike A Deal In The Programmatic Marketplace?
There typically two ways to strike deals in the auction marketplace. The first workflow is if and when you have a buying need and looking for the right publishers, drilling through their packaged advertising space programmatic deals, then, contact the publisher to accept the offer as it is or to negotiate and strike a deal and the second known as private auctions allows you to contact a preferred publisher directly to strike a deal. (Details will come later on).
What is programmatic real-time buying?
Programmatic is an auction style buying where Internet users are saved in real-time with displaying advertising as soon as a pay page they are on loads provided the site owner has signed up to sell ad space on RTB with an ad exchange provider. What normally happens is that; an ad exchange platform is the medium for RTB but still, marketers and advertisers could still strike a deal outside the ad exchange platform and have it implemented through the ad exchange platform which is known as direct buying which I will be talking about later on.
What normally happens is that; an ad exchange platform is a medium for RTB but still, marketers and advertisers could still strike a deal outside the ad exchange platform and have it implemented through the ad exchange platform which is known as direct buying which I will be talking about later on.
Programmatic advertising uses a powerfully engineered bidding system used in these auctions and digital marketers will need hands-on experience to understand how it works so as to benefit from the resource. In practice, we have the demand side platform (DSP), which is the software responsible for running the advertising automation, responsible for buying ad space on opt-in advertisers websites. The process considers your targeted audiences, geography, past browsing
In practice, we have the demand side platform (DSP), which is the software responsible for running the advertising automation, responsible for buying ad space on opt-in advertisers websites. The process considers your targeted audiences, geography, past browsing behavior and demographics
The demand side platform is programmed in a way that it automatically identifies the impressions that are relevant for the advertiser and the Ad exchange helps advertisers to offer advertising space to those businesses and brands with interest based on who is willing to pay the highest amount of dough and as such, the pricing is determined by a real-time auction and real-time bidding. Each advertiser creates an AD inventory – which simply refers to the amount of bidding space they are offering to brands, publishers and marketers on their website/page through the RTB platform. It is cheap and cost effective than anything available within the digital marketing landscape as of now.
Each advertiser creates an AD inventory – which simply refers to the amount of bidding space they are offering to brands, publishers and marketers on their website/page through the RTB platform. It is cheap and cost effective than anything available within the digital marketing landscape as of now.
These auctions happen in less than a second and the price is determined by how much bidders are happy to pay in real-time. The system is very intelligent that; as soon as a platform that has signed up for RTB, when a page loads, the system then passes information about the content on the page, the person-type viewing it, on to the ad exchange server to determine the highest bidder and based the criteria above that looks into personae, geography and demographics.
Each time a web page loads and an Ad shows up, it is counted as one impression. The one good thing is that; marketers and brands may decide which platforms they are happy to buy ad impressions on, taking into account the type of readership and relevance, assuming that someone will click through to go the brands’ website.
Think about retargeting with Google platform. We target users throughout the web because of relevance evidenced by the interest
Think about retargeting with Google platform. We target users throughout the web because of relevance evidenced by the interest the he/she, had shown on a product or service.
The one good thing is that; being an automated process, eliminates human sales interaction as the decision to place a bid on auctions for impressions are automatically made in favor of the highest bidder using sophisticated and powerful algorithms that appear to be accurate than anything we have seen in the 21st century.
It means, as marketers if we are going to succeed in the digital marketing landscape, we are required to runs tests to determine where the highest conversions are coming from.
It is true with programmatic and calls for the need to target as many websites based on the brands financial power fire when getting started.
The testing processes will open doors for marketers to see sources providing the highest conversions and at reasonable costs to embark and capitalize on based on the available trends and time.
Direct Programmatic or Pre-Negotiated Programmatic Buying
With direct programmatic, one would negotiate the deal directly with the ad space publisher of choice. In practice, Ad exchange marketplace offers buyers the opportunity to quickly identify inventory channels and strike deals with publishers programmatically through private auctions and preferred deals.
Let’s get down to business. So what is actually programmatic direct? Here, we are looking at those scenarios where a buyer would pick up a phone and call an advertiser to buy ad impressions directly, let’s say, buying all ad impressions on New York Times traditionally but implemented programmatically through technology ad exchange platform.
The publisher then creates a customized proposal through the marketplace purposely for you. Once you have received the proposal, it is up to you to review the proposal thoroughly and negotiate, accept or decline the proposal. When I started in digital, I asked the question, what is programmatic advertising more than 10 times. It was quite daunting!
Programmatic direct is also known as “programmatic guaranteed” or “ programmatic premium”. So whatever you call it is all up to you. Therefore what we are saying is that; programmatic direct is about striking deals with publishers and advertisers on guaranteed ad space and having the programmatic system automates the whole process
In the past, buying of ad inventory was very laborious and inefficient so thanks to programmatic. The brand would have to carry out a rigorous research to determine the best platform or website to buy an advertising space and would send correspondences across the borders and plus humans would have to implement the Ads on agreed pages which normally took a long time to accomplish.
Is Programmatic The Next Big Thing To Watch Out For?
It is very hard to say, in fact, as it is still at infantry level. However, it looks feasible and cannot be completely rolled out. We would be able to make conclusions once we can identify how much businesses are spending annually on the auction.
A digital marketing specialist with past experiences running and managing multi-million Pound companies. Studied Digital marketing and graduated with an MSc in Digital Marketing Birmingham City University, England, United Kingdom
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