Capturing the attention of consumers in today’s digital ecosystem is extremely difficult. Due to this, it is critical that marketers understand the benefits of Programmatic Advertising.
There are millions of digital assets such as websites, applications, and properties being used among a vast array of channels, all day, every day.
Due to the multitude of options in platforms and channels, having to use separate platforms to advertise on different channels and having to select the best areas to use your advertisements in the digital world is a very daunting task.
Programmatic advertising solves this.
Programmatic advertising is the automated buying and selling of online advertising.
This automation makes transactions faster and easier to perform. It also streamlines the process of collecting all your digital advertising results into in specific platform. This is perfect for modeling and measuring your digital marketing results.
Programmatic platforms have been growing their infrastructure, inventory, and database in a way where any business models, formats, and channels can be accessed programmatically today. This includes mobile, desktop, tablet, audio, digital outdoor, and connected TV.
One of the great benefits of programmatic advertising is access to customizable advertising. Programmatic reviews the consumer behaviors based on data collected and pairs the right ads with the right individuals. This is very efficient as “spray-and-pray” advertising ceases to be the only option.
How does Programmatic Advertising Works:
Say Montclair State University wants to promote more online classes.
The school hires a programmatic advertising platform that has a database of consumers that meet the desired background:
- Demographics (male / female / 18 – 45),
- Geography (45 min from NY),
- Interests (Digital Advertising, Pets, Fashion),
- Behaviors (Seeking advanced marketing education),
- Time of day (7-10 PM)
- Device (smartphones)
Using these criteria, The platform then uses real-time data to discover the best online audience(s) for the campaign and buys digital ad inventory through an auction based on everything available across multiple devices.
Terminology
DMP: Data Managing Platforms. Some popular platforms include Lotame, SalesForce DMP, OnAudience.com, Snowflake, SAS Data Management, Mapp DMP, TradeDesk, and Cloudera.
PUBLISHER: The sellers of the ad space. These are the websites that get the specific traffic on the desired demographics.
Ads Exchanges: An ad exchange is a digital marketplace that enables advertisers and publishers to buy and sell advertising space, often through real-time auctions.
SSP: A supply Side Platform is a programmatic platform designed for automated inventory management. SSP is used for selling inventory at the optimal set level. SSP manages the budget and monetary activities – all in one place.
Ad Position: The specific place where the ad will be located. Depending on the placement and publisher, the positioning cost varies.
YOU MUST KNOW:
It must be noted that optimal programmatic advertising occurs when the platforms and their managers have a total understanding of the Clickstream Data of the publishers, consumers, and target markets.
clickstream is the pathway reflecting user’s interactions and activities as they perform their online journey. Normally, it shows the behavior on a single website and generally shows how the user moved from search-engines to transactions. It also provides marketers data such as: where and how many terms were used, where and how maybe clicked on, and how many terms a user returned to.
Managing Clickstream is all about connecting all the interactions of users and creating a business plan that will stimulate a sale or the goals of the marketer. These Clickstreams are critical for programmatic advertising as they provide a level of understanding of where consumers are going, what they are doing….which eventually allows marketers to place the ads with the right platform and publisher.