programmatic buying

Is programmatic buying the future of Advertising? Let us delve more into what actually programmatic buying is.

Whenever a business has started the thought which troubles the businessman is how to place ads but with the evolving of the digital medium it has become a lot easier.

What is Programmatic Advertisement Buying

In simpler words, it means using various automated software for fulfilling the advertising needs. Without programmatic advertising there were times that humans need to do the whole process of buying and selling of ads but with the coming of software the buying and selling of ads are taken care by advanced integrated software which implies various algorithms and programs for placing an ad and humans can utilize their time in optimization and improvement of ads. Humans will always be needed to plan and optimize advertising but programmatic ad buying will mean that there will be fewer ad buyers.

Programmatic advertising saves a lot of time but there is no certainty that it will give the desired results but it can make sure that the money which you are spending has been put to best use and also due to its various advanced features it runs the ad campaign and works on the possible improvements. You need to do just feed the information in the form of programs and you are all set to go.

Focal Point Consulting – we help companies assess their skills and choose a new direction which utilizes the talents of the team and resources most productively.

Real Time Bidding

There is a misconception that programmatic buying is real-time bidding but that’s not the case real-time bidding is just a type of programmatic buying. It is the most common method of programmatic ad buying as there are many businesses so it seems impossible to target each audience so publishers have joined together and advertisers use automated bidding to facilitate the purchase of different ad spaces of those networks. The bidding mostly is done through exchange networks, demand and supply side platforms.

How is it useful

In a nutshell, it simplifies the complicated advertising world. It allows you to track your advertising and measure the success of your campaign. Changes can be made giving it a lot more flexibility leading to an increase in revenues. A major reason for programmatic being widely accepted in the advertising world is its capability to burgeon the effectiveness of the campaign.

Some points to highlight its benefit :

• Can grow the business at a much faster pace
• Results can be measured
• Advertisers can target the right guidance at the right time
• An impression at a time can be purchased by advertisers
• Campaign monitoring is possible

How it works

There are two sides – advertisers and publishers involved in the process as advertisers use a demand-side platform and publishers use the supply-side platform, each of the side uses a computerized platform to facilitate the transaction on the ad exchange.

A person clicks on the website and the website owner puts the ad impression up for auction (SSP) and the advertiser (DSP) offers a bid for the impression. The highest bidder wins the ad impression and the ad is served to the user on the website and finally, the user clicks an ad and who knows the user might convert to!

The competing bids are determined and calculated by algorithms and other analytic tools which work for finding out the most effective bid.

How to do-

• Understand your marketplace – Before initiating you must know what type of advertising you are going to do and what your competitors are doing as it must be known beforehand so that you can take necessary steps.
• Identify your goals – Whether you are doing an awareness or lead generation ad you must be very clear about it. Moreover, you must also know that why are you going for programmatic advertising rather than traditional advertising.
• Manual work – As the programmatic buying work on algorithms and places the ad but still, you need a human touch to feed the programs and look after its proper functioning.
• Look after – The Common issue which people have faced with programmatic advertising that is has placed the ad at wrong places so you need to make sure that your ad is getting placed at right places and in the right manner.
• Data secrecy – In this modern world many businesses are running purely on the basis of data and when putting advertising you must make sure that all your data is gathered and analyzed effectively and then only you must start executing the programmatic buying as the benefit of programmatic buying is that all your data remains secure.

Examples

General examples

• Buying and selling ad inventory using real-time bidding and ad exchange
• Direct buying ad impressions from publishers
• Making use of re-targeting

IHG

Hotel group IHG initiated to run programmatic ads so that users can to direct booking instead of going to third-party app or sites. Their campaign was a huge success as they target the right audience who wants to make a booking. By seeing this many other hotels in the industry have started following placing an ad through a programmatic advertising method.

Audi

Audi used programmatic advertising brilliantly before the launch of the Q2 company. Audi was not alone in this journey as they took help of Google and gathered data about users taste, preferences and many other factors were taken into consideration before placing an ad through programmatic way and the result was much beyond the expectation. The company earned more than four times higher average conversion rate than the bought during traditional methods.

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