Explained: Programmatic Advertising
TLDR: Programmatic Advertising uses artificial intelligence (AI) in real-time bidding to help automate and streamline the advertisement buying process. In short, programmatic campaigns allow you to specify a target market, budgets, and goals for the campaign. Due to the Covid-19 pandemic, digital advertising spend has exceeded traditional media spend. Altogether, this is great news […]
Topics
TLDR: Programmatic Advertising uses artificial intelligence (AI) in real-time bidding to help automate and streamline the advertisement buying process. In short, programmatic campaigns allow you to specify a target market, budgets, and goals for the campaign.
Due to the Covid-19 pandemic, digital advertising spend has exceeded traditional media spend. Altogether, this is great news for businesses as online advertising offers more options, lower costs and more flexibility than traditional media advertising. However, one of the biggest challenges with all of these bells and whistles of online advertising is to figure out how to select platforms to advertise on. There are more options than ever and it can be uncontrollable for businesses. This is where Programmatic Advertising comes in.
What is Programmatic Advertising?
Programmatic Advertising uses artificial intelligence (AI) in real-time bidding to help automate and streamline the advertisement buying process. In short, programmatic campaigns allow you to specify a target market, budgets, and goals for the campaign.
It powers the purchasing of advertising space processes through technologies such as Demand-Side Platforms (DSPs), Supply-Side Platforms (SSPs) and Data Management Platforms (DMP).
DSP: It’s software or a tool that enables advertisers to buy ad placements automatically.
SSP: Equivalent to DSPs where advertisers manage their programmatic ad buying, publishers use a SupplySide platform to manage their display space.
DMP: DMPs are platforms that let organisations collect and handle user data for digital marketing goals like programmatic advertising.
Programmatic advertising automates the process of purchasing and bidding on ad space with the combination of these three technologies and artificial intelligence.
How Programmatic Advertising Works?
Arrive: As soon as the user visits the website that uses programmatic advertising, it initiates the automated advertising process. Users are unaware of when the programmatic advertising process begins at the backend and it ensues in milliseconds.
Send: In consideration of a user visiting the website, the publisher intuitively sends the measurement of its advertisement space to an SSP.
Read: The SSP analyses a user’s cookies after receiving data on the available advertisement space. The purpose of this step is to learn basics about the user from their demographics to their interests, to deliver a relevant ad.
Evaluate: By examining the data collected by the SSP, the DSP estimates the user’s worth and allots it a value or the worth of that user’s impression.
Bid: The DSP proposes a bid to the SSP, after allotting a value to that user.
Choose: The SSP assesses the DSP’s bid as well as any other bids, once the bid arrives. After that, the SSP will choose its winner, who is usually the highest bidder. You may pay your top bid or the price of the second-highest bid, plus a charge, depending on the auction.
Deliver: The SSP then transmits the ad to the user when the winner has been determined. Because the programmatic advertising process is so quick, the page will load with the ad visible — there will be no need to reload the page to see the ad.
One of the best examples of programmatic advertising is of a digital and a print publication The Economist. They used programmatic advertising by referencing subscriber, cookie and content data. Their campaign gave rise to 6,50,000 new prospects, alongside a return on investment of 10:1.
As The Economist covers a wide range of topics, from technology to finance, they needed to modify its advertisements to its audiences. The publication explored its extensive audience data. This data comprised details about subscribers’ interaction with them through web and mobile apps. Using this information, the publication selected what content drew readers and when. And with this analysis, they created audience segments for Finance, Politics, Economics, Good deeds, Careers, Technology and Social justice.
They replicated audiences from these segments and each of these audience segments got customised ads based on their preferences. An ad featuring one of the publication’s latest (or most popular) finance pieces, for example, might be seen by someone interested in finance.
Advantages of Programmatic Advertising
There are a few key advantages to running digital ads campaign advertising.
Access To Ad Network: Programmatic advertising connects automatically to platforms like Google Ads, Instagram, Facebook, Twitter, LinkedIn, Pinterest, Amazon and more. A well-framed campaign can get the organisation maximum visibility across multiple networks.
Highly Targeted Campaigns: Through the power AI the ads are only shown to the people who fit the specific target market.
Campaigns Are Delivered Across Devices: Programmatic campaigns reach users where they are at, whether it is a mobile device, tablet or desktop. This allows running a true omnichannel strategy for ad campaigns. If a business has a crystal clear target market that they want to go after, programmatic advertising is a fantastic option to consider.
Conclusion
In the coming times, programmatic advertising has a lot of potential and this is the right time to set foot into a trend towards an increase. Irrespective of the business size, programmatic marketing has proven to be significant potential.
With the use of programmatic campaign strategies, the execution of a new first-party strategy, and functioning with an advertisement buying platform, a business will drive conversions and witness a lot of success with programmatic advertising.
If you liked reading this, you might like our other stories
Can SPO Solve Adtech’s Bid Problem?
Why Are Marketers Investing in AdTech During The Pandemic?
