Why Programmatic Advertising

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Why Programmatic Advertising

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Olden marketers are very likely to remember those times when the ads formats were very limited in their variations: over-the-street banners, posters, banner were static on the majority of websites.

After some advertisers have decided they can pay not for the whole website traffic amount and the model with payment for displays has appeared. New model of collaboration was called Cost Per Mile (CPM). Sooner, the necessity to narrow target audience has lead to appearing of targetings by geography, time, gender, age and so on. Each advertising space started tending to collect more exact information about their visitors, and advertisers, in their turn, to make their target audience even clearer and get detailed analytical reports about the campaigns. This part of our present is slowly becoming a past in marketing.

Smartmedia is seeing the future in algorithmic buyings – RTB and personalization of all ad messages.

RTB (Real Time Bidding) – is ads buy-sell process in real time mode. The technology allows to meet both parties of the process – advertisers and websites owners – and take part in the auction of ad displays. Obviously, playgrounds are interested in full monetization of the web traffic, while business owners want to have advertising campaigns with the highest results.

Websites, or Publishers, are represented by SSP (Sell Side Platforms) and DSP (Demand Side Platform) is used for advertisers.

The way the auction is held

The whole logic is as follows:

SSP gets information about the resource of a certain type and informs DSP about it. The latter platform check all the information available about this user and, basing to that data, offers a bid. The highest one is a winner and its owner has the right to show his ad.

All the information collected is anonymous, but it is very powerful as a result users get highly personalized ads.

What are the benefits here and why programmatic advertising is so highly popular?

Advertisers are very serious about effectivity and opportunity to estimate each display. The approach gives them chance not only buy display of interested audience but calculate the chance of banner’s being clicked and further purchase.

To say it simply, RTB helps advertisers to find the clients they really need, while visitors see the ads that are more relevant to their needs and interests. As a result, people become more loyal to ads and less irritated and more likely to make a purchase.

Advertising is the biggest item of expense and small companies think that they have no opportunity for their good being promoted. Programmatic approach allows them to tell the customers about existence for lower costs. The system allows to state maximum price one is ready to pay. No need to spend thousand of advertising dollars when your business is interested in your town and, probably, some neighbour locations.

What will happen to traditional forms of advertising?

There is a tendency to say that programmatic buying will conquer advertising world. However, experts from Smartmedia digital are not so judgemental. The point is that traditional advertising networks started obtaining some features from programmatic, RTB technology, in its turn, also found what to try on from its predecessor.

All we can say is that the digital advertising world is never be the same again. We are expecting to have huge amalgamation, where a lot will be taken from typical forms, but programmatic approach will change it to make advertising personalized. We should understand ads is inevitable part of our world and it lies in our power to make it less irritating, target-focused and useful.

Write us to know more about programmatic advertising and how your company can win from it.


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