Introducing Programmatic Advertising

Programmatic advertising is the marketing strategy of selling, buying, distributing, and measuring digital advertising with advertising technology (AdTech). The most common programmatic advertising platforms include ad servers, supply-side platforms, demand-side platforms, ad networks, and data management platforms. These platforms all work together within an ad exchange.

Supply-Side Platforms (SSP)

SSPs is a programmatic advertising platform where publishers have the ability to manage, sell, and optimize their ad space. With SSP, the ability to monetize websites and apps by showing ads through displays, videos, and other native formats to their audience exists.

Demand Side Platforms (DSP)

DSPs allow advertisers and agencies to buy advertisement space from numerous publishers from a single user interface. These platforms connect marketers to ad networks, look at available inventory, and ensure that these advertisements are targeted to the right audience.

Ad Exchange

An ad exchange is where DSPs and SSPs meet to facilitate the automated buying and selling of digital advertisement placements. These advertisement spaces can be on websites, mobile games or applications, video games, or basically anywhere an ad can be seen that is digital. Publishers will put up ad space or inventory for sale in the ad exchange. Advertisers will then bid against each other in real-time competing for ad space with the highest bidder winning the opportunity to display their advertisement.

Programmatic Advertising Buying Methods:

• Programmatic Direct
• Real-Time Bidding (RTB)
• Private Marketplace (PMP)
• Waterfalling
• Header Bidding

Advantages of Programmatic Advertising

• Time Efficiency
• Reduced Costs
• Targeted Audience
• Real-Time Measurements
• Transparency and Control
• Increased Audience Reach

Disadvantages of Programmatic Advertising

• Advertisement Fraud

Impressions are measured on a click or view basis and so it is, therefore, important to ensure that your firm is not including the impressions that are made by bots.

• Lack of Knowledge

Programmatic advertising is an extremely difficult concept to understand with the growing technology industry. Try to keep up with the moving industry.

• Quality and Quantity of Ad Space Inventory

Because ad space may be limited, don't display your ads in random locations that are irrelevant to other audiences.

• Brand Management

Target your advertisements only to your intended audience and make your content relevant to your brand image.

Because so much money is constantly being spent within the digital marketing industry, incorporating the use of AdTech is important because buyers are then able to optimize their budgets and sellers can also maximize incoming revenue. Programmatic advertising is beneficial to website publishers because it brings in the opportunity for websites to make money through the sales of space for advertisements from other organizations.