•  Learn how this incredible technology can free up your time 
•  Find out exactly how programmatic advertising works
•  Find out how programmatic advertising can widen your audience

How does programmatic advertising work?

The transaction programmatic advertising occurs on ad exchanges. On these sites computerised auctions take place. On your chosen ad exchange there will be publishers who are the website owners. The software used on this site will incorporate traffic data and other methods to achieve great impressions for your ad which increases your ROI. 

What does programmatic advertising even mean?

The definition of programmatic advertising is using software to purchase ad space. This is achieved through machine learning and algorithms to purchase display space. However, it is not a completely automated process and requires some input from the advertiser. You will still need to have a plan and an idea of the demographics and areas you are targeting. You will, however, have more time to focus on the optimisation and the creative of the ad itself. Don’t forget it’s still display advertising so your images and copywriting will still need to be on point. 

Programmatic advertising has been around for a few years now and it looks like it’s here to stay. 

What is the process of programmatic advertising?

The user clicks on a website that the publisher has advertising space through an SSP (Supply-side Platform)

They analyse the data profile of the user using a DSP a demand-side platform. This technology automates the buying process of the advertising space to the most relevant for the viewer.

The advertiser who has the best relevancy to the user’s profile lands on the publisher’s website. DSP uses the data collated from the user to evaluate the most relevant options that the advertiser has bought. The DSP then decides on a bidding price for the first impression. They hold this process in the ad exchange software and they sometimes refer to this process as real-time bidding. 

This seems a very dense and convoluted process, however, it is a process that is estimated to take around 100 milliseconds. It is amazing how far the technology has come for programmatic advertising. 

What is the difference between direct purchasing and programmatic advertising?

When trying to remember the difference between direct sales and programmatic advertising is simply is a different transaction. When you purchase advertisements directly you are purchasing the spot or network. When you are purchasing programmatic advertising you are purchasing the audience or demographic.  

How do programmatic ads benefit me?

Programmatic ads have a huge range of benefits for your business, read on to find out how they can help you.  

Saves time

The most immediate benefit of programmatic advertising is the freeing up of time that is usually spent determining the most relevant audience for your ads. The principal focus of the technology is targeted audiences. This means that every single person who views your ad is within your desired demographic. And not just age and gender. You can also target your ads to be shown at a particular time of day, i.e. lunchtime to increase the traffic into your store during your potential customers free time. Programmatic advertising simply takes care of all of this for you. This means you can spend your time focusing on the creative of your advertising and the analytics of your campaigns. This technology also works faster than you can blink. Time is money and if you are short on time considering programmatic advertising is a great idea.

Increased ROI

You will also have an increased ROI (return on investment) because of the SSP and DSP working to ensure that your ad gets the right audience, every time. This technology also works faster than you can blink. You also no longer need to liaise with individual publishers as many SSP technologies that publishers own can harness a very wide range of websites and platforms. 

Insightful Data

You can consider your data extremely reliable because every person who views your advertisement will be your target audience. This means you can gain even further insights into your viewer’s influences and behaviours. This means your messaging and other aspects of your future campaigns are far more informed. Another term for this detailed data is ‘deep data’. 

While the Google Display network is a vast network of display advertising options, it cannot advertise to the number of websites that a programmatic advertising network can. When you choose to use Google as a network for your advertising you are advertising on incredibly popular sites such as YouTube, Gmail advertising and many more. The Google Display Network can give you incredible market reach particularly if your core demographic is a frequent user of Google technologies. You can also advertise based on users Google search history which is incredibly valuable as it’s the most widely used search engine. However, there are over 200 million websites on the internet and by the time you are reading this, there are likely to be more. It is estimated that the GDN has access to about 2 million sites. Programmatic advertising hubs have a far greater reach than the Google Display Network. Another name for programmatic advertising networks is ‘premium private marketplace’ (PMP). These PMPs allow you to advertise to the masses using many advertising networks under one roof. You also have greater targeting with strategies such as in-store advertising, location and behavioural targeting. Your re-targeting will also benefit from the highly localised advertising available in programmatic advertising. It is also possible to have more options for formats of your ad because of the larger options available for placements in a PMP. 

What are the drawbacks of programmatic advertising?

Cost

Programmatic advertising is a brave new world that is harnessing the power of machine learning and Ai. However, this doesn’t mean that this technology is necessarily affordable for the average advertiser. The platform costs associated are higher than choosing a provider such as the Google Display Network. A way to mitigate this cost is to work with a vendor or agency that already has access to the platform. A metric is known as ‘Cost per impression’, is one way you are billed for your advertising. This means you are paying for the viewing of the advertisement rather than the interaction with the ad itself or ‘Cost per Click’ as you would in the Google Display Network. It is a far more expensive model than other methods. That being said, some platforms are now offering a Cost per Engagement model, you just need to shop around. 

You need experience

Whether it is hiring the services of an agency or platform or undertaking a lot of trial and error with your programmatic advertising, to get it right you need experience. You may end up paying more for this experience as an agency or platform but you will be more likely to be successful the first time. However, the platforms are becoming easier to use as the technology improves. Many of these providers know the Google Display Network is a very easy-to-use platform and will improve in the future. 

Sometimes placement is not always where you want it to be

If you are worried about your product being next to material that may be offensive then be very careful about which provider of programmatic advertising you employ. Or perhaps reconsider. The technology that programmatic advertising uses is not perfect (yet) and is still coming into its own. However, it is unbeatable for reach and targeting options for advertisers and if your budget allows a foray into programmatic advertising, enlist the help of an expert or platform to bring out your best results. 

How can I start programmatic advertising?

Choose a programmatic vendor. This is far easier said than done. If price is a concern (and it usually is) some DSP’s provide re-sellers to their platforms that can give you a lower price and commitment to spend. Some low barrier providers such as SiteScout and Adroll are great for advertisers wishing you use a lower cost DSP.  This means programmatic advertising can be achievable for small businesses. You will also want to investigate if you can negotiate the price. Also ask if there are fees for joining their service, such as onboarding and such.

If you can get a recommendation on providers. Transparency is a genuine issue with the fee structures and if you can get a positive recommendation for a provider, that’s great. 

Check that you have some support or contact when you have questions about your advertising. This is a really important aspect as the world of programmatic advertising is complex. This is an expensive medium and support goes a long way in terms of value for money. 

Check that their technology works well and check reviews and the reputation of the company. Most companies use their own technology to harness the power of machine learning and Ai. Also, check what they offer will be the type of service you want for your business.  

Also, ask for an example of the type of report that you will receive or analytics of previous campaigns the company has undertaken. Are they comprehensive? Easy to read? Can someone explain the questions you may have? 

This can seem overwhelming at first and take your time in deciding the right vendor for your business. Using this information in the above list and asking around is the best way to having a positive experience in utilising programmatic advertising for your business. There are many experienced vendors who are happy to help you make the leap into display advertising.   Make sure you ask lots of questions and even write down your questions or concerns so you can keep track of everything you need to know. Happy learning!