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But what is Programmatic Buying or Programmatic Advertising in simple terms: the set of technologies that automate the buying and selling, segmentation of the audience and optimization of digital advertising spaces.
HOW DOES IT WORK?
Programmatic Buying facilitates the buying and selling of impressions for digital advertising spaces between advertisers and publishers.
Ads are placed on display, social media, mobile and video campaigns, thanks to SSP (Supply-Side Platform) platforms such as MediaMath , DataXu, AdForm that allow publishers to monitor and sell their impression inventories, and DSP (Demand-Side Platform such as Pubmatic , Rubicon, AdMeld and Improve Digital) used by advertisers to buy impressions. Supply and demand are found on Ad Exchange platforms such as Google DoubleClick , Facebook Exchange, Yahoo Right Media, Microsoft ADECN.
There are 4 types of Programmatic Buying transactions classified by price (fixed or auction) and type of inventory (reserved or public): as you can see from the infographic.
programmatic buyingInfographic: 4 Types of Transactions with Programmatic Buying
Automatic Guaranteed : The deal is made directly between buyer and buyer, the price and inventory are fixed. The deal process is similar to the traditional one, but the request and traffic process of the campaign are automated.
Private Marketplace : The agreement in this case is not confidential, but the price is pre-negotiated and agreed. Usually, advertisers prefer this type of agreement.
Invitation-only Auction : Based on invitation-only RTB (Real Time Bidding): the publisher can decide to limit the offer to a closed number of advertisers, and expose some information to canada telegram phone number list value to the inventory.
Public Auction : Public auction is often used to collect unsold inventory. Like invitation-only auctions, it is a real-time auction (RTB). The publisher allows all potential buyers to have access to its inventory. There is usually no direct relationship with the buyer: advertisers compete to get an impression on the inventory being auctioned. A winner is then assigned in about 200 milliseconds.
WHAT ARE THE ADVANTAGES?
For Advertisers:
Reduction of advertising campaign management costs
Save time and gain transparency
Reach a very specific target thanks to an advanced audience segmentation, CTR and higher conversions
For Publishers:
Disposal of unsold goods
Optimized sales thanks to the automated process
Automated and advanced segmentation based on different parameters
It is estimated that in the United States 70% of display advertising will be programmatic by 2016. Web Marketing experts predict that advertisers will spend more than 9 billion dollars on RTB by 2017.
Here you can watch the video that briefly explains how Programmatic Buying works:
