If you have not yet figured out how the automated programmatic buying system works, do not delay. Let us carefully study the principles of programmatic buying, its strengths and weaknesses, collect the opinions of experts, and understand why programmatic TV advertising has already gained so huge popularity.
Why Is It Beneficial To Use Programmatic Buying?
Display advertising is one of the most popular ways to promote on the Internet, but if you negotiate with each site separately, the process of placing such advertising will turn into a rather monotonous and time-consuming task.
On average, it used to take about 42 steps to place ads on the right resources. The first ad networks were developed to make this process easier, and today, such automation has led to really great results.
Programmatic was created as a perfect model for:
- Online advertising optimization
It is the case when all processes are automated as much as possible to convey the right message to the right client at the right time.
Programmatic buying allows advertising buyers to make transactions in a fully automatic mode without manual manipulations, price discussions, and signing contracts. Automation improves efficiency by reducing costs and improving the quality of an advertising campaign.
How Does Programmatic Work And How Participates In It?
The ecosystem of programmatic contains platforms used for the representation of the interests of advertisers who are selling space on the websites and trying to do it more profitably. In addition, some services select and try to buy the best profitable placements for ads.
Who Is Who?
Web publisher representatives include:
- SSP (Sell Side Platform) – These platforms are equipped with optimization tools that help trading more profitably. SSPs are based on the RTB system (the auction takes place quite rapidly while the client opens the resource) or via direct sales.
- Ad Network – Such a network aggregates ad placements and matches them to advertiser requirements.
Advertiser Representatives Are The Following:
- DSP (Demand Side Platforms) – The main goal here is to purchase an impression for the most targeted client and pay the lowest possible price. They work utilizing different models of advertising (RTB or direct sales) and help in buying ads that are beneficial according to their price-quality ratio.
- ATD (Agency Trading Desk) – DSP add-on for setting up advertising purchase parameters. Most such desks have a subscription fee, or you pay according to a percentage of advertising.
The DSP manager participates in the auction themselves, which compares the advertising purchase parameters set by advertisers and information from other platforms of the programmatic ecosystem.
Where Do Advertisers And Web Publishers Meet?
Ad Exchanges are intermediaries in the digital trade of advertising. This is the place where offers from web publishers meet the needs of advertisers.
How To Choose An Advertising Platform To Work With Programmatic?
The results of the use of automated ad buying depend on the chosen platform. For example, the most popular platforms for working with programmatic are Google Ad Manager, AppNexus, and Rubicon.
However, new options are constantly appearing, and you will face quite a big choice. How to select a platform?
To select a proper and suitable platform for your needs, pay attention to the following key aspects:
- Audience coverage (will you be able to show ads to the right users?)
- Targeting options (make sure that the toolkit of the chosen platform is flexible and accurate enough to find your target audience)
- Cost (most platforms are paid and have a certain entry threshold for advertisers; therefore, the main indicator is the advertising budget)
- Transparency guarantees (the platform must protect the advertiser from fraudulent traffic, and when ads do not reach real people, views and clicks appear due to bots).
- Ad visibility
Altogether, there is an opinion that programmatic buying has changed the face of advertising, and the future belongs to it. Still, some think about it as nonsense because robots will not be able to replace people.
The truth, as always, lies in the middle. Programmatic has its niche, while people will continue to make major strategic decisions about targeting and optimization, and work with some advertising formats, for example, video, is still not automated enough.
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