Digital advertising continues to evolve rapidly as new technologies emerge. Today, we live in a world where it’s more prominent to connect on mobile than on desktop. This has opened the opportunity to advertise to the target more directly by following their engagement in the digital space.
So, What’s Programmatic?
It’s the biggest buzzword in industry today that’s consequently changing the way online advertising is done. At its heart, programmatic simply means using technology to buy and sell digital ads, which equate to more efficient advertising. Programmatic’s buying digital ad space, with the help of software, that analyzes data and decide which ads to buy.
Programmatic advertising accounts for 72% of digital display, worth more than $27 billion!
Disruption at its finest
Programmatic advertising is positively disruptive. Rather than using a shot-gun approach with high frequency placement, programmatic largely focuses on targeting. Programmatic ads are served based on user behavior and targets individuals that have recently engaged with specific content.
Types of Programmatic, Digital Advertising:
Real-Time Bidding (RTB)
Advertising inventory from publishers is made available through an open marketplace where businesses can bid on placement. This auction-based model is where ad space is sold to any advertiser willing to bid the highest.
In an effort to control content, publishers can choose to engage in Private Marketplace deals, or Closed Auctions. Here, they engage with a select set of advertisers that fit their predetermined criteria and open inventory for them. The publisher also selects content based on what the advertiser is willing to pay for the ad space.
Through Preferred Deals, a publisher can choose to engage in a one-on-one relationship with an advertiser, thus earning more control over the generated value. The advertiser agrees to pay a fixed price for the inventory and the publisher gives the advertiser a right of refusal before making their inventory available to anyone else.
This is a more upfront relationship model where both the publisher and advertiser engage and agree in advance as to what exactly the deal is going to be like. The advertiser agrees to buy inventory at a fixed price.
What’s DSPs, SSPs, and DMPs?!
A DSP or Demand-Side Platform purchases ads automatically. DSPs help make the process more cost-effective and efficient by removing the human element. They also eliminate the ability to negotiate ad and insertion rates.
If you want to sell advertising automatically, you can use an SSP, or Supply-Side Platform. This is the most preferred by online publishers for placing display, video and mobile ads.
A DMP, or data management platform is a software that gets all the data and gives it out in a way that’s useful for the advertiser. A DMP targets specific users with online ads by storing cookies and generating audience segments based on user behaviors.
Ad space is sold and bought in a digital marketplace called the ad exchange where real-time auctions for display, mobile and video ad inventory are conducted.
Programmatic advertising is busy, but exciting because it’s the most effective way to exclusively reach your desired audience and generate business.