Programmatic Advertising Platform

Programmatic advertising is considered to be the future of web marketing. It is connected with the massive investments and effectiveness of this sphere. According to the statistical data, over 60% of digital advertising budgets were spent on Programmatic in 2018.

Programmatic platforms: what are they?

Programmatic marketing’s a process of purchasing or selling of advertising inventory by means of the automated processes. The deals are made through various websites with the help of programmatic advertising software. Programmatic ad buying platforms allow purchasing and selling such types of digital adverts, as:

  • application
  • search
  • video
  • display
  • mobile
  • social ads.

Many modern programmatic buying platforms support the work even with TV inventories.
It’s vital not to confuse the programmatic approach issue with real-time bidding system. The latest is only a part of that approach. At the same time, the programmatic approach refers to any advert purchase, which involves the processing with the help of machine & software. The system is based on the following aspects:

  • systems with real-time deals
  • algorithms
  • specific formulas.

As a result, the provision of relevant experience (for instance, targeted offerings, content, and messages) to the consumers becomes automated.

Compared to the traditional advert purchasing process, the programmatic approach does not deal with human negotiations, requests for offerings, manual orders insertion, invoicing, and payments. In other words, algorithms (machine-learning ones) are responsible for placement, purchase, and optimization. As a result, the process becomes really much faster, while the risks of errors become lower. Besides, the whole process gets cheaper, as the greatest part of it is automated. At the same time, the programmatic approach does not exclude a human from the process. People still have to customize campaigns and adjust various settings. Thus, specialists can concentrate on more important tasks instead of being deeply involved in bureaucracy.

The advantages of programmatic media buying platform

Programmatic marketing possesses plenty of advantages making the advert purchasing process automated. In comparison with the traditional approach, which concentrates on displaying adverts on certain sites to accidental users, the programmatic system focuses on serving of adverts to relevant visitors, disregarding of the sites they visit. Besides, the deals are made in milliseconds, which allows saving lots of time and energy. The risks of fraud also become lower, which is a significant advantage for all users.

For the advertisers, it offers the following benefits:

  • no necessity to negotiate on the prices
  • the payments are made only for the relevant impressions
  • the possibility to sign up for a minimum number of impressions/minimum budget
  • possibility to purchase adverts from the publishers with the minimum administration costs
  • minimization of the wasted media
  • increase in the effectiveness of the campaigns
  • more targeted offers.

As for the publishers, they can also enjoy certain advantages, such as:

  • maximization of the value of the inventory offered
  • selling of the inventory to the highest bidders
  • the possibility to control the type, content, design, and other features of the ads displayed.

As for the other essential benefits of the programmatic advertising platform, we can mention the following:

  • transparency in pricing (only advertisers can decide, what sum of money they are ready to pay for a certain impression, the costs vary depending on the relevancy to the settings)
  • the precision of the metrics of the campaigns (advertisers have a chance to effectively measure the efficiency of their adverts with the help of leads conversion or clicks. They also see, what advert is sold, at what cost, and to what user)
  • advert campaigns’ scalability (it is possible to reach a larger audience on various sites in a time-effective way).

The principles of functioning

There exist several key elements of the automated approach, which are:

  • SSP
  • Advert Exchange
  • DSP
  • Advert Server
  • DMP.

The DSPs are applied by the users in order to set certain specifications for the advert campaigns. As a result, the process of advert inventory purchase becomes easier, while the users can reach their target audience via DMPs (which are demand-management platforms). The latest are able to evaluate and gather a great extent of cookie information. Thus, the marketers can get clear data concerning their audience making more weighted decisions during the process of targeting. With the help of SSPs (which are supply-side platforms), such essential data as preferences, browser behavior, location, etc. are collected. The information is submitted when a publisher’s advert inventory is listed on Advertising Exchanges. Besides, SSPs are responsible for the selection of the best bid during the auctions with a real-time system of bidding.

As for the Advert Exchangers, they are an enormous pool of advert inventory, which can be purchased by means of automated tools from various publishers. The resources also run RTB auctions, which are based on one impression. At the same time, Advert Servers are created for the storage of advert content and its provision to different digital platforms, which might be:

  • tablet/mobile sites
  • desktop sites
  • applications, etc.

In general, programmatic marketing’s able to make publishers & advertisers closer to each other by means of an automated purchase process, which is built on certain specifications of the advert campaign set for a definite audience. Thus, they are united into one system. Today this approach opens more opportunities offering new solutions for advertising agencies & advertisers. There are also great opportunities for the monetization created for the publishers. That’s why we can say that programmatic advertising is the future of all digital marketing. According to the forecasts, by 2019, the programmatic advertising will take over than half of all advertising. It denotes a significant growth compared to the figures of the previous years.

Besides, the programmatic approach might go far beyond the digital market and touch the traditional advertising market as well. It is supported by the fact that plenty of advertising agencies and media companies keep working on the development of ways, with the help of which the purchase of TV spots and out-of-home adverts will become possible.