Programmatic advertising refers to an automation and optimization of advertising purchases. In general, the programmatic system performs the following: in real time, it purchases individual displays of digital advertising on the ad market through automated computer systems, which improves targeting quite a lot. Now, let us consider in more detail how programmatic works, how to capture attention of your customers with this system and what the programmatic technology does.
1. Auctions take place faster than you may think
First of all, programmatic advertising differs from traditional, direct purchases in a way that it does not have prepayments. Instead, it is all based on bets determining the cost of impressions during the course of an advertising campaign. Thus, an optimization of the procurement of advertising becomes possible on the basis of the current marketing situation but not upon the end of your ad campaign when the question
how to capture attention of your target audience is no longer relevant.
Every time a user visits a site page that has a place to display ads, an auction occurs between advertisers who are interested in interacting with that user. The winner of the auction is then let to display their advertising at a price, usually lower than the amount of the bet made, which is seen from the history of programmatic.
Depending on the technical conditions, the entire process of selecting advertising material for a specific user takes about 50 to 250 milliseconds, which is an insignificant delay.
2. Each ad display is sold separately
This aspect is the essence of real-time bidding and programmatic advertising. The displays are not grouped by packages of several thousand or millions, as each ad impression the system buys automatically according to the advertiser’s pre-determined requirements. The ad impression report also comes in real time, so your requirements can be changed at any time from start to finish, which is useful if you want to rethink the question how to capture attention of your customers for better conversions.
3. Auctions need an ad exchange
Real-Time Bidding implies real-time auctions, and auctions are conducted by ad exchanges, which is something you can learn from history of programmatic. An ad exchange is an automated platform (Google ADX, AppNexus), where ad networks put up advertising inventory of publishers for sale.
A full automation of advertising purchases via programmatic advertising is not just one of the advantages, but a necessary requirement, because the process of selling every ad impression is too fast and there are too many of them for a person to handle them.
All companies working with RTB advertising, as seen from the history of programmatic, have their systems automated. However, the degree of this automation and the level of customization – the ability to adapt to the needs of a particular customer – is different for every system.
5. Ultra-precise targeting: high conversion without intrusiveness
Since each ad impression is sold separately, you can pick the format and content in accordance with the situation in which a user finds themselves at the moment.