What’s programmatic marketing

Programmatic advertising (algorithmic purchase of advertising) is in the list of trends and loved by marketers. At first glance, this is something complex and accessible only to a narrow circle of specialists. Programmatic Advertising Buying is the automation and optimization of the online advertising procurement process. Literally, ‘algorithmic purchase of advertising.’ Unlike the traditional process of concluding advertising deals, where the human factor was crucial, here the decision about the transaction is made by automated systems (robots) in real time based on user data, which improves order targeting. Programmer advertising is a type of display advertising when you buy not a place on the site but a banner is shown to a certain type of users through automatic platforms. You choose the parameters, which are to be used to show ads.

The goal is to automate the advertising process, aimed at increasing the relevance of advertising and, in general, optimizing the management of advertising on the Internet. If in 2010, an advertiser negotiated a price with several ad networks and ran a limited number of ads, now this is in the past. Programmatic technology automates the advertising process and makes it transparent to the advertiser. Two parties take part in media procurement: sellers (SSP platforms) and buyers (DSP platforms). Vendors are sites that offer ‘their territory’ for placing ads. Their responsibilities include collecting data about the audience that visits the site data. Buyers are advertising systems (buyers’ side) that represent the interests of advertisers and help them buy targeted traffic using programmatic technology. Programmatic buying works at all stages of the sales funnel. The principles of programmatic technology are:

  • The visitor comes to the site from search engines or by reference

  • While the page is loading, the programmatic platform sends a request to the advertising network, where DSP bets are accepted

  • User data is transmitted to the SSP-system (platform for the sale of advertising spaces), acting as the seller.

Further, SSP puts up for sale a lot, the potential buyer of which are DSP systems (they represent the interests of advertisers). If the latter is interested in displaying advertising to this representative of the target audience, it makes a bet. Advertising of a winner of the auction is shown to the user.

Programmatic buying is:

  • Analysis of major platforms in programmatic buying

  • Display advertising media on desktop and mobile devices

  • Running dynamic remarketing

  • Placement of promotional videos

  • Own advertising procurement platform (Trading Desk)

  • A team of specialists working in the direction of programmatic ad buying

  • High level of expertise in the field of programmatic advertising.

The future is behind programmatic purchases and new channels will be gradually added to traditional channels, for example, TV. Many agencies have already successfully applied the technology of algorithmic procurement because it has great potential:

  • More deals in a short amount of time

  • Super precise targeting: high conversion without the intrusiveness

  • Programmatic technology provides the most accurate hit to the target audience (socio-demographic characteristics, geo targeting, intentions, preferences)

  • Extensive inventory options (banners, videos, mobile)

  • Flexible settings and quick adjustments to current advertising campaigns, which allows you to optimize the result of campaigns and budget.

Platform sellers promise to advertise only on proven resources. However, there are some risks associated with where the ads will be displayed.

First, it is a link that merges advertising budgets. Of course, programmatic technology uses machine-learning algorithms to recognize and prevent a potential click-fraud but sometimes this is not enough.

Secondly, advertising on unwanted resources, which can damage the company’s reputation. In programmatic advertising, you buy an audience, not a list of sites. There is a possibility that your ad will appear on a page with unreliable content.

DSP sites control the list of sites and applications in order to recognize and put sites of dubious content into the blacklist. But be prepared for the fact that it will have to be updated regularly: such resources quickly change domains and appear like mushrooms after the rain.

Attention! Often, low-quality sites give cheap traffic and, therefore, sites block them only on request. Thirdly, there are discrepancies in the statistics of the advertiser and the DSP site. This applies to ad serving requests, clicks, impressions, and conversions.

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About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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