Programmatic advertising is any automatic purchase of programmatic marketing advertising inventory on a web page through bidding at an auction or directly, to be guaranteed to get the right place. Programmatic ad buys and sells inventory to increase efficiency. Inventory is measured in the number of ad impressions to one person. Programmatic advertising is rapidly gaining ground in digital marketing. According to eMarketer, in 2017, 83% of all purchases of display advertising were programmable.
Why programmatic advertising platform is so important?
Before programmatic appeared, advertising was bought and sold manually. Banner ad networks bought a crowd of shows from publishers (online publishers), in advance at many different sites, and then sold them in bundles to advertisers without any transparency. The advantage of programmatic is that it makes the buying process faster, more efficient and less expensive. Advertisers can explore their advertising campaigns in greater detail (through highly accurate user targeting, which shows the right advertising at the right time) and strategically control their productivity. If you are thinking about investing in programmatic, familiarize yourself with some basic terms that you need to know:
- – RTB (Real-time bidding) – real-time bidding for the purchase and sale of each specific display at instant auctions
- – DSP (Demand-Side Platform) is an automated platform for ad inventory buyers, which allows buying on multiple advertising exchanges, as well as managing different accounts and campaigns in one interface
- – SSP (Supply-Side or Sell-Side Platform) is a technological platform for publishers to manage their advertising equipment (advertising on their platforms), through the sale of which the profitability of digital media increases
- – Ad Exchange is an advertising exchange on a technological platform, which facilitates purchases and sales of online advertising. Ad Exchange prices are based on a variety of reasons
- – The pricing approach on the advertising exchange is technologically determined, in contrast to the traditional approach, when the price of inventory was contractual
- – Trading Desk is a group of traders who represent advertising agencies and companies known as operators specializing in RTB technology.
Traders run ad campaigns and manage them day after day. They daily monitor the optimization and efficiency of budget utilization. The key to a successful campaign is data. Without data, your campaign is based on assumptions, not facts. In the context of programmatic advertising, when we talk about data, we mean information obtained from cookies. Cookies are information placed on a user’s computer by a web server. It can be stored there and retrieved at the time when the website is used. Cookies are also used to record data about unique user behavior during a visitor’s visit to the site.
Now let’s look at some standard reporting forms and various campaign optimization methods that provide super efficiency. To make algorithms effectively optimized, they must move from the “learning” phase to the “optimization” phase. To do this, you need to have a certain number of successful campaign events. A successful event may include a click, a landing, or a sale, for example. Properly reaching this level can only be done by making sure that enough daily expenses have been allocated.
Therefore, the desired KPI and CPA should be measured based on the available budget to ensure that everything that can be obtained from investments. In addition to the constant algorithmic optimization, you will need a team of media traders who control the manual optimization, ensuring the best efficiency from investing in the campaign. This can mean budget savings due to unproductive sites, creativity, and time of the day or day of the week. The budget will then be transferred to a strategy that will provide the desired return, as well as to the introduction and testing of new strategies throughout the advertising campaign.