The evolution of technologies has radically changed the way media is traded in the digital environment. Therefore, in this wake, the programmatic media it was created to increase assertiveness and efficiency both in the purchase process and in the sale of advertising.
If traditional insertion negotiations were previously done manually and interpersonally, involving inventory reservation, price definitions, sending creatives and reports, now all these steps can be performed automatically and in real time. This thanks to programmatic media: a modality of media marketing in a fully automated way and targeted to specific audiences.
By merging data with technology, programmatic allows you to serve the best creative based on the interests of the user, the most appropriate channel and at the right time.
To this end, programmatic platforms identify consumers through cookies and data collection available on the internet that provide valuable clues about browsing behavior and consumption habits.
Therefore, communication is no longer widespread and becomes personalized and targeted (one to one), increasing the efficiency of actions and reducing the waste of funds. And that’s exactly why programmatic media has become so Intelligence for brands and is expected to generate US $ 98 billion worldwide by 2021, according to Zenith.
How does programmatic media work?
Programmatic transactions for ad slots take place through auctions and preferential negotiations and are intermediated by an ecosystem of specific platforms and technologies. So, in this process, it is possible to create targets highly accurate for displaying more assertive ads to consumers, based on data on behavior, profile and other characteristics.
O Real-time bidding (RTB) is the most used programmatic media buying and selling model. It is a real-time auction system used to negotiate remaining inventory (that is, the advertising spaces of publishers that have not been negotiated with any type of exclusivity).
So, for everything to work in fractions of a second, the RTB system encompasses several technologies and platforms that facilitate the availability, in a 100% automated way, of advertising spaces by the vehicles (publishers). Here, the purchase takes place through auction, where the advertiser that offers the highest bid is the media.
In this way, RTB benefits both vehicles, by enabling optimization of the sale of inventory, as well as advertisers, by connecting the ad with the most valuable audience and reducing media waste.
It is worth noting that not every programmatic media transaction takes place via RTB. In addition to the open auction, there are negotiation models in private and restricted auctions, in which the publisher gives priority or preferential access to certain advertisers.
Programmatic media: the main technologies of this ecosystem
The programmatic media chain is known to be extremely complex, as it involves several players on both the sale and purchase sides. So ua real “alphabet soup” as they say, due to the famous acronyms DSPs, SSPs, DMPs, among others. Now, below, we detail some of these main technologies:
Demand Side Platform (DSP)
Platforms that optimize the purchase of digital media and allow advertisers to bid on publisher inventories available on AdExchanges or on private marketplaces. This software, for example, helps marketers to invest budgets, always seeking to obtain the best cost-benefit ratio.
So, this is possible because DSPs automatically prioritize impressions that match the target audience and the requirements of each campaign. Therefore, the DSPs' business model is based on cost per thousand views (CPM).
Among the main players are: Display and Video 360 (DV360) from Google, MediaMath, Verizon (Oath) and others.
Sell-side Platform (SSP)
While the DSP is used by those who buy media (demand side), the SSP is the platform that gives publishers the opportunity to offer their inventories in an automated way. DSPs analyze potential buyers in real time, always seeking to maximize the price per impression, in order to enhance vehicle inventories.
Data Management Platform (DMP)
As the name says, it is a platform for data management from different sources. For example: cookies, IDs, CRM data, mobile data, clicks and more.
Therefore, this solution performs the capture, organization, storage of data and makes it available for use in targeting ads.
Therefore, DMPs provide an integrated view of the data, allowing you to create a unique user profile and group customers into valuable clusters. Here at AG, we use the Tail Target like DMP, but there are others on the market, such as Navegg, Hariken and BlueKai.
They are online marketplaces that perform intermediation between buyers and sellers of ads in order to facilitate negotiations through the auction in real time. Make it possible to purchase inventory of multiple SSPs in one place, increasing the purchase reach. Among the players are Google, OpenX, Yahoo, Rubicon and other companies.
Among other players in the programmatic media ecosystem, there are also ad networks, that are companies that buy and resell third party inventories. In addition to agency trading desks (ATD), agencies that operate DSPs and manage the purchase of programmatic media for their clients.
Why is programmatic media strategic for business?
Unlike traditional media trading, which uses predefined data volumes, programmatic segmentates each site by audience flow. Therefore, it uses behavioral averages are used as a reference.
More intelligence in purchasing and contextualization
Programmatic media is an efficient, assertive and 100% automated way to buy advertising space in premium digital environments. With this, the model ensures that the appropriate advertisement is served to each consumer and at the most decisive moment of the purchase journey. Scalable, flexible and agile.
Centralization of negotiations and total control of deliveries
By centralizing the purchase of media ads through an adserver, the advertiser is able to gain control over the frequency and reach of the ads, eliminating overlaps and offering a better user experience.
Different formats and screens
In addition to the already established banners (display), several other ad formats can be purchased programmatically. Such as: video, audio, native formats, responsive formats on mobile, desktop and applications. So, that means that possibilities even include TV and out-of-home (OOH)!
Branding and performance campaigns
The programmatic can be used both in strategies with the objective of generating greater recognition for your products (awareness), as well as for strategies that aim to bring results related to sales and lead generation.
Higher ROI at the end of the day
Thanks to machine learning algorithms, programmatic advertising guarantees advertisers greater efficiency in bidding, which results in better conversions, deliveries within the target and optimized budget management.
Where to start?
More than an ad negotiation model, programmatic media today is a vital comparative asset for companies that have discovered, by connecting data, technology and creativity, how to promote the best experiences to their customers and be relevant in such a world full of information.
Your company needs a strategy to activate the best available data and to plan and execute campaigns according to your business objectives. So if you’re an advertiser and want to experience the programmatic universe to engage consumers with your brand, contact with experts from About Grow for a conversation without compromise!