What is Programmatic Advertising & Ad-Tech?
Programmatic advertising and AdTech?
Programmatic Advertising is the automated process of buying and selling online advertisements. This type of advertising is designed to automate the process of buying and selling digital ad space, making it more efficient and effective. Advertisers can use programmatic advertising to target specific audiences with more precision, and publishers can use it to maximize the value of their ad inventory. Compared to traditional advertising, it is a much more streamlined approach that cuts costs and optimizes marketing efforts. Through AI technology and real-time bidding, marketers can place ads across multiple channels with minimal human interaction.?
AdTech, short for advertising type of technology that makes programmatic advertising possible. AdTech is a type of advertising system that automates the process of buying and selling online ads. It can be described as a source of resources and tools that marketers use to automate the positioning, measuring, and delivery of ad campaigns in digital format.
Programmatic advertising can be used for various types of online advertising, including display ads, video ads, and native ads. Some examples of ad-tech platforms that enable programmatic advertising are Google Ads and Microsoft Advertising. These platforms use algorithms to automate the buying and selling of online advertising, based on factors such as user data, website traffic, and ad placements.?
Some of the most common types of advertising technology are supply-side platforms (SSPs) and demand-side platforms (DSPs).?
SSPs and DSPs?
Supply-side Platforms (SSPs) are types of ad servers that make it possible for publishers to sell, manage, and optimize their ad space. It allows publishers to manage the sale of their ad inventory in an automated fashion. Streamlining the ad sales, SSPs help maximize revenue and provide real-time data about the demand for their different ad inventory.?SSPs are a key part of the programmatic advertising ecosystem. They help publishers maximize the value of their ad merchandise and give ad buyers access to a wide range of inventory.
DSP stands for Demand-side Platform. It is a type of server that allows marketers in the digital realm to buy and manage multiple ad inventories and data sources in a real-time. Using a DSP, a marketer can purchase different types of ads in one place. For instance, search engine banner ads, social media ads, and mobile app ads can all be purchased and managed on one platform. Features such as campaign management, reporting, and analytics can all be managed using a DSP as well.?
A DSP typically connects to multiple ad exchanges, giving advertisers access to a broader range of inventory. A marketer would want to use a DSP to optimize digital campaign efforts across all channels in the most cost-effective way.
What’s the Difference?
The main difference between Supply-side platforms and Demand-side platforms is that SSPs deal with inventory while DSPs deal with buying advertising. SSPs help publishers optimize their inventory and automate the selling of ads, while DSPs help advertisers automate the ads' purchase process.
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Example of Programmatic Advertising
The Economist was interested in targeting “intellectually-curious”? consumers who have not subscribed to their publications. Using data from their subscriber base and cookies they were able to discover the best content to deliver to their target audience. They used programmatic advertising to reach readers who were more likely to be interested in their content and to serve them ads that were relevant to their interests.??
They used this newfound information to create content based on the following areas:?
By creating a look-alike audience based on their subscriber data, they were able to gear their marketing efforts toward the right audience.?
Inputting this data into programmatic software, they were able to generate 650,000 new prospects, increase awareness in the U.S. by 62%, and increase the number of consumers in the “consideration phase”? of the buying journey by 22%.?
Where is it now
Though programmatic advertising has been around for almost 15? years, new changes in legislation and company policies have a significant change in how advertisers use this type of technology.?
In 2021 Apple released its iOS 14.5 which came with a new consumer privacy update. The new app tracking transparency feature allows a user to opt out of third-party data tracking. In the digital realm, data tracking is what drives content to attract the right audience. From a consumer perspective, this is seen as great news, however, as a marketer, it has created a new barrier between them and the customer.?
It makes it harder for organizations to get a full analysis of a user's online habits. As a result, creating targeted ads through programmatic advertising and other methods has become significantly harder. The economist example I described earlier would not be possible if ATT had been implemented at that time. As we further develop ethical codes around digital marketing, advertisers across all industries will have to constantly reevaluate their methods and find new ways to develop marketing strategies.?