In the upcoming months, Hotmob will guide you through the complicated world of programmatic advertising. In this issue, we will discuss the basics of programmatic and introduce programmatic terminology like RTB, DSP, SSP, and DMP.
What is programmatic?
The adoption of “programmatic advertising” is growing in APAC market, but what is programmatic?
Programmatic ad buying is to use software to buy online advertising. Instead of people manually handling campaign orders, programmatic technology makes the ad buying process more efficient via software that aggregates, books, flights, and analyzes online ad campaigns. Advertisers can work directly with many publishers without negotiating individually with publishers.
Advertisers/agencies use a technology called demand-side platform (DSP) to set prices, campaign properties, and audience targeting.
Publishers/networks use supply-side platform (SSP) to manage ads and advertisers from demand-side platforms.
What about RTB?
RTB (real-time bidding) is one type of programmatic advertising. It refers to buying and selling ad impressions through real-time auctions in a technology called an “exchange.”
One exchange connects many advertisers with many publishers.
When a user visits a publisher’s website, information about this impression (including user data, website url, location if possible) is sent to the exchange.
Advertisers use DSPs to place bids into the exchange that’s connected to many publishers and many SSPs. The exchange will place the advertiser’s ads (based on campaign criteria, audience targeting, and price) into the right ad space.
Every time a user visits a website, the exchange will match an advertiser with this publisher’s ad impression. That’s why it is called real-time bidding. RTB is just one way to buy ads programmatically, there are other ways and we will explain them in the next issues.
What are the benefits to buying programmatic?
Before programmatic, advertisers had to buy and set up digital advertising campaigns targeting publisher content and rely only on a publisher’s data. With programmatic, the buying process is faster and more efficient and advertisers have more controls.
Advertisers can buy impressions across many digital platforms (website, mobile site or app) without needing to negotiate with and set up campaigns on individual publishers. Campaigns can run with different ad formats, including but not limited to display banners, video, mobile, and rich media. After a campaign is set up, the DSP will communicate with multiple exchanges and find the right impression for the advertiser’s campaign. It replaces the tedious process with automation.
Data management platforms (DMP) let advertisers upload their own user data and also include insights from data management companies. Programmatic campaigns target specific audiences based on first- and third-party data.
Programmatic platforms can match the right brand message to the right user in real-time. When a user visits a publisher’s website, this impression data is transmitted in real-time and matched to the most relevant advertiser.
Many of the benefits in programmatic advertising technology revolves around efficiency and data. This is why many marketers choose programmatic to be part of their long-term digital strategy.
- Programmatic advertising refers to buying/selling digital ad impressions using technology. Programmatic makes the ad buying process more efficient because it aggregates, books, flights, and analyzes online ad campaigns.
- RTB is one type of programmatic advertising.
- There are many benefits including efficiency, automation, and the ability to use first- and third-party data into ad campaigns.