Define: Programmatic Advertising

Programmatic advertising is when you automate the buying or selling of online inventory using machines, with this, suppliers and demand sources are able to deal without having to manually process forms and contracts and keep large sales teams.

The different types of Programmatic Ads

Deals can be structured and maintained in a few ways when dealing with suppliers and demand sources.

Some traffic exchanges or open ad marketplaces, the existing and available ad inventory (users requesting ads from different sites) is available to anyone with access to the exchange. For each request a transparent auction takes place and the highest bidder ‘win’ the impression and displays his ad content (banner, interstitial etc). Similar to the stock exchange auctions happen in real-time and are auditable and transparent as per industry standards. With some advantages come a few disadvantages which mainly centers around low eCPMs for publishers, fraudulent ads and sites and low ad quality.

  • Preferred deals are a type of auction that is closed for a select group of advertisers that bid on premium postions in which a price floor (minimum accepted bid price) is determined and where advertisers get first right of refusal for offered ad inventory, fill rates may become an issue for the suppliers of the ad inventory as not all requests receive a qualifying bid.
  • Standard deals are similar to preferred deals, except they compete with open exchange auctions for rates. The method of selling and buying is similar to an open exchange which makes competition fierce.

RTB basically means programmatic media buy that happens in real-time, or as soon as a request from a site is made to fill an ad position the auction returns the winning creative in virtually real-time.

The Benefits of Programmatic Technology

Sounds complicated? We make it easy with gaining your access to the world’s premium supply and demand sources, but if you’re not yet convinced here’s a few more key advantages:

  • If you’re an agency, focus on suppling your clients with results instead of dealing with a lot of manual slow-to-close deals. The granularity of data and the insight you will gain even from a short programmatic media buying campaign will be crucial to building a proper marketing plan and scaling your business.
  • Transperancy is key with programmatic media buy, which comes down to knowing exactly where your ads are shown, understanding whether they are viewable and making sure you receive exactly the users you target.
  • Scaling up successful campaigns with programmatic media buy is vastly easier than when dealing with manual deals. Having the same creative or campaign receive more relevant inventory through more integrations with supply sources can be done within a relatively short amount of time.
  • With real-time data comes close to real-time changes, keep on the ball with real-time reports and make fast changes according to your KPIs and ROI goals.

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