Types Of Programmatic Buying [PATCHED]
Programmatic advertising is the process of automating the buying and selling of ad inventory in real-time through an automated bidding system. Programmatic advertising enables brands or agencies to purchase ad impressions on publisher sites or apps within milliseconds through a sophisticated ecosystem.
types of programmatic buying
Programmatic advertising has become one of the most preferred ways of running ad campaigns. But, the AdTechOpens a new window space is complex, and a lot of mystery surrounds programmatic advertising. Marketers are still unsure about the concept of programmatic advertising and its ecosystem. We aim to clear all this confusion in this primer.
Programmatic advertising is the real-time buying and selling of ad inventory through an automated bidding system. Programmatic advertising enables brands or agencies to purchase ad impressions on publisher sites or apps through a sophisticated ecosystem. Programmatic advertising includes ad slots for digital out-of-home (DOOH), online, streaming, TV, video and voice ads.
Advertisers use a DSP to facilitate the process of ad buying and a DMP to utilize third-party user data (brands can merge first- and third-party data to strengthen targeting capabilities). Publishers use an SSP to manage their ad inventories. SSPs take the final call on deciding which ads to serve depending on the bids.
Contrary to the traditional media buying process, programmatic advertising may not necessarily involve advertisers and publishers working on a one-on-one basis to serve ads. The ad delivery depends on the type of programmatic deal chosen.
Programmatic guaranteed, also known as programmatic direct or automated guaranteed, follows the traditional approach of media buying. Here, the advertiser and publisher negotiate the terms on a one-on-one basis.
Advertisers and publishers work with display networks such as Google, Microsoft, or Snapchat to facilitate the buying and selling of ad slots. Publishers generate revenue based on the clicks and impressions data collected by the display network.
The popularity of programmatic ads continues to grow as video continues to become one of the most preferred mediums of content consumption. Digital video ad spend in the US alone is predicted to grow up to $22.18 billion in 2021.
Programmatic audio platforms rely on real-time audience data to place ads and utilize engaging display and video ads to optimize the user experience. Streaming apps serve companion ads that are often programmatic display ads, while ad pods are the audio equivalent of video ads.
Although measurement and attribution are still challenging in programmatic DOOH due to its nascency, advertisers can run targeted and highly engaging retargeting due to its features such as geofencing.
As programmatic advertising provides advertisers with real-time campaign performance, they can invest their budget in avenues that will get them the best results. This efficient investment allows them to spend their campaign budget effectively and yield better ROI.
The transparency offered by programmatic advertising platformsOpens a new window enables advertisers to evaluate each publisher in real-time based on the performance of their ads and choose those who deliver justifiable results.
Unlike other types of programmatic deals, this type does not guarantee that the advertiser will bid for the ad unit. Preferred deals are also known as programmatic non-guaranteed, unreserved fixed rate, or spot buying.
Programmatic guaranteed is similar to traditional media buying because advertisers and publishers work one on one to create deals. However, AI tech is used to automate the request for proposal (RFP) and the serving and tracking of ads.
Advertisers can work with premium ad inventories, fixed pricing, and better audience targeting. In addition, publishers have the certainty of filling premium inventory at some of the highest rates in the industry. Programmatic guaranteed is also called automated guaranteed or programmatic direct.
Automated guaranteed can be considered a fifth type of deal, though modern descriptions of programmatic advertising deals often overlook this deal type or bundle its functionalities together with programmatic guaranteed deals.
In addition to traditional ads run on social media platforms, a newer type of advertising known as programmatic influencer marketing allows advertisers to programmatically establish and run influencer campaigns from outreach to to campaign management.
With all of the different types of programmatic deals, formats, and technologies that have been mentioned throughout this guide, it must come as no surprise that there are many different businesses that specialize in different parts of the programmatic ecosystem.
Meanwhile, companies like the IAB (Interactive Advertising Bureau) and digital news sources like Digiday also play a role in providing regulation and sharing news surrounding updates to the shifting programmatic advertising landscape as a whole.
We are witnessing an explosion of new buying channels that better connect buyers and sellers, all with the aim of moving ad inventory higher up the value chain and replicating the traditional direct buying process without the legacy inefficiencies that go along with it.
Real-time bidding (RTB) is a technology that enables types of programmatic buying and selling of digital ad impressions through instantaneous auctions, facilitated by ad exchanges or demand- and sell-side platforms. In the open marketplace, RTB impressions are available to all bidders.
These are customized, invitation-only marketplaces that provide publishers with the ability to set aside certain ad inventory packages and sell it to a select buyer or group of buyers with an emphasis on margin management for the seller. Unlike a direct buy, which can be quite labor-intensive, buyers in a Private Marketplace use programmatic methods to purchase from publishers.
Spot Buying transactions exist within an exchange environment with pre-negotiated, fixed pricing (on things like CPM or CPC). Typically, these are given a higher priority in the ad server than open marketplace or PMP transactions. These types of programmatic deals are the result of advertiser demand for a more predictable offering within the exchange space.
It might sound chaotic; however, RTB is managed in a controlled environment. Publishers are allowed to choose the specific ad units to be placed for the open auction. Next, they can block advertisers and filter ad types as per their requirements. And most importantly, they get to choose the floor price for their inventory.
Programmatic guaranteed is different from direct deals. In direct deals, publishers keep control of inventory and present what they want to sell. However, in programmatic guaranteed, buyers are allowed to see all placements and choose as per their requirements.
Fast facts: Invite-only basis, know what sites your ads appear on Next on our list of types of programmatic advertising is a private marketplace. Private marketplace operates on an invite-only basis. So, with this setup, a publisher sets aside their premium ad spots for a select list of advertisers.
Display ads are the visual ads you see in the header, footer, or sidebar of a website. You create these ads through display networks like Google and Microsoft. This programmatic ad format is one of the most common options companies use to reach leads on third-party sites.
Next on our list of programmatic ad formats is native ads. Native ads are ads that can appear on any part of a third-party website. Advertisers choose which impression they want to buy and the price they pay.
Programmatic advertising is the automated process of purchasing and selling online ads. The buying and selling of ad space happens in real-time through an automated system called a Demand Side Platform (DPS). This method gives advertisers the ability to place ads across multiple channels with little human interaction.
In programmatic advertising, all of this manual work is taken out of the equation. You create one ad, sign up on a programmatic ad platform, choose your target audience, and let the platform do the rest.
A subsect of programmatic advertising is local programmatic advertising. This type of advertising takes an even more granular approach to geo-targeting (also called geofencing) by partnering specifically with publications, radio stations, and TV channels in a particular geographical area.
Other factors that influence the cost include industry competitiveness, DSP subscription costs, and programmatic ad agency fees. While costs can vary widely, programmatic ad buying is more cost-effective because it relies on real-time bidding rather than bulk ad-buying.
This display ad on the sidebar of The New Yorker's website is for AppExchange, a sales optimization tool. The programmatic ad software identified that a large portion of The New Yorker's audience work on weekdays between 9 to 5 and are interested in that type of software.
Check out this Coke ad on my Twitter timeline. I'm not a soda fan, but I am a huge football fan (#MonstersoftheMidway). The programmatic ad software probably chose this ad due to my internet history surrounding football.
Choozle is a major programmatic ad company whose DSP gives you access to 98 percent of ad spaces available online. You can target audiences based on a diverse array of parameters, such as IP addresses, purchase history, psychographic information, and geolocation.
What does programmatic advertising mean for you? It's a great automated tool to maximize your ad spending and see the results in real-time. You can also see these ads at work by visiting any of your favorite websites right now.
The term Programmatic is widely used in the digital advertising world and is synonymous with RTB or Real Time Bidding. However, Programmatic has evolved over the last few years and it is important to distinguish between the ever growing list of acronyms and ways in which you can buy or sell digital advertising. To put it simply, RTB is not Programmatic, but rather the protocol and just one of the ways in which advertising is bought programmatically. 041b061a72