Programmatic Advertising - What is it? Let us explain

Ok ladies, you are going to need a nice glass of Bailey's on ice for this one and gents, you will need a glass of whiskey - 10 year old single malt is preferable. Programmatic advertising can be complex, but we are going to try and make this as simple as possible. 

Programmatic advertising is relatively new and such an exciting way for business to reach additional customers. Below is how it works:

Description: Programmatic quite simply means automatic. Programmatic buying refers to any ad space bought automatically on a web page, through either bidding for the space or buying it directly so it's guaranteed to be yours.

PROGRAMMATIC RTB

  • As a webpage loads, if it has ad space on it that is available for real-time bidding (RTB), information about the webpage and the user viewing it is passed on to an ad exchange. 
  • An ad exchange is a platform that auctions off the available ad space to the highest bidder. The winning ad will then appear on the webpage when it has finished loading.
  • These auctions are held in the milliseconds it takes for a webpage to load. 
  • This available ad space is also known as an impression. Every time an ad loads this is one impression. Some impressions are more valuable to certain marketers than others, depending on the particular website it appears on, it’s relevance and the likelihood that a user will click-through on the ad.
  • The price of an impression is determined by what buyers are willing to pay in real-time.
  • Advertisers often use demand-side platforms (DSPs) to help them decide which ad impressions to purchase. A DSP is a fully automated piece of software that bids on impressions from an ad exchange.
  • Advertisers often use demand-side platforms (DSPs) to help them decide which ad impressions to purchase. A DSP is a fully automated piece of software that bids on impressions from an ad exchange.

PROGRAMMATIC DIRECT

  • This is also known as ‘automated guaranteed’, ‘programmatic guaranteed’, and ‘programmatic premium’. These are all the same thing, so don’t worry about the jargon.
  • This is an automated process of buying guaranteed ad space that doesn’t involve an auction. 
  • Now that more automatic solutions are available thanks to the rise of programmatic advertising (RTB, Google AdWords) marketers can now have faster access to ad inventory, complete pricing control, immediate and seamless delivery and various performance analytics.

With all the different marketing variants out there, you will find that you can attempt to do them yourself. With Programmatic advertising, we recommend using professionals. Feel free to give us a call to discuss any of your questions.