We bet you probably haven’t heard about programmatic advertising before and if we are right, you should learn at your first convenience. Experts dubbed it as a black box of advertising universe with its potential vastly unexplored.
In laymen’s terms, programmatic advertising is the process of purchasing and selling that is fully automated and occurs online. Programmatic advertising is a process where you use multiple platforms to sell your inventory on both publishing and advertising sites; it also entails the practice of placing ads and buying inventory on a third-party’s site. This practice is also known as programmatic marketing.
The process is quite hectic as it involves doing everything manually as it entails negotiations with the third parties, making RFPs (requests for proposals), and inserting orders manually. However, the transaction occurs in milliseconds despite the fact that it involves multiple platforms.
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Programmatic advertising working explained
Programmatic Digital Advertising works in the following way:
Step 1
The website initiates automated bidding for ads as soon as any viewer lands on it. The bidding is started to serve viewer-centered (an ad that is in accordance with the likes and dislikes of the viewer) ads to the target audience.
Step 2
When it comes to programmatic ad buying, SSP (commonly known as a supply-side platform) acts as a seller for the publisher (one who is displaying ads). SSP acts as a seller by informing advertisers/bidders about the various features of the sites, users, and ad space.
Step 3
The supply-side platform initiates amassing information about the viewer through cookies such as his demographics, geography, interests, and other things as soon as it collects information about the ad space from the bidder.
Step 4
Once SSP has performed its side of functions, DSP (commonly known as demand-side platforms) initiates reviewing the data collected by SSP. In this way, a DSP lets advertisers select that ad space that aligns with their targeting parameters and advertising budget. In this way, we can easily say that programmatic advertising offers unique and data-driven solutions to advertisers. Therefore, advertisers get the most out of their advertisement expenditures.
Step 5
Once DSP has performed the aforementioned functions, it makes bidding for placing an ad on your behalf. As stated above, all this happens in milliseconds and in real-time. This has led to referring to programmatic ad buying as a real-time advertisement.
Step 6
As SSP receives bids from multiple DSPs, it picks the one that fits it well. When it comes to real-time advertisement, sites deploy a wide array of strategies such as client-side bidding, waterfall bidding, and header bidding among several others. To your knowledge, all this process occurs in milliseconds, even during the timeframe when a specific page is loading.
Reasons you should use programmatic advertising
Following are the reasons that you should pick programmatic advertising over conventional bidding:
Data-driven Advertising
The biggest advantage of programmatic ad buying is that it allows you to target the exact audience by delivering data-driven decisions. Therefore, you target the right audience and deliver them the right message at the right time and place.
Full ROI Guaranteed
By making data-driven decisions that target the right audience, you are guaranteed a 100% return on your investment. Programmatic Digital Advertising slashes the risk of going your advertising budget to waste. Therefore, it is gaining popularity among advertisers.
Real-time measurement and optimization
Thanks to this amazing invention in the advertising multiverse, you can now measure the performance of each ad that you place on a website in real-time. You don’t need to wait anymore for the excel sheets from the agencies (that take weeks or weeks to arrive).
Transparency
Before the inception of programmatic ad buying, advertisers have no option but to rely on the monopoly of the agencies. Thanks to its arrival, now you have full authority to target the right audience and to spend your hard-earned money wisely.
If you are spending on digital ads, we recommend you switch to programmatic advertising at the first available moment. By doing so, you will get the most out of your advertising budget as you will be targeting the exact audience to whom you want to sell your products or services. Also, the target audience gets full satisfaction from the ads on display.
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