For some time now, the term Programmatic Advertising (PA) has been floating through various online spheres. But what does it entail? Simply put: "data-driven, automated online advertising." Programmatic Advertising involves the fully automated, individualized buying and selling of online ad spaces and the targeted, tailored placement of ads based on existing (and online collected) user data.
WHAT CAN PROGRAMMATIC ADVERTISING ACHIEVE?
PA can significantly increase the efficiency of online advertising – in terms of platform selection, audience targeting, and media buying. Instead of booking ads statically on pre-selected online platforms, the ad banners are delivered where our target audiences actually are.
Programmatic systems can be fed with a multitude of user data, making targeting extremely precise. Insights from the analysis of our website visitors can define segments whose like-minded counterparts (or statistical twins) are surfing the web and just waiting to be addressed with the right message. And these are precisely the individuals targeted with Programmatic Advertising.
AUTOMATIC OPTIMIZATION AND REFINEMENT OF THE CAMPAIGN
The major advantage of a programmatic campaign is the optimization of banner delivery and audience targeting during its runtime. User interactions with the campaign are analyzed, evaluated, and used for (automatic) optimization "live."
Additionally, this optimization process guarantees interactions with the ad banners and the connected landing pages. This means the advertiser receives a concrete estimate upfront on how many leads will be achieved at which CPC (costs per click). It goes as far as defining guaranteed CPC and landing page visits after a preliminary campaign modeling.
HOW DOES PROGRAMMATIC ADVERTISING WORK TECHNICALLY?
Programmatic Advertising has two sides or levels: the Demand Side Platform (DSP) and the Supply Side Platform (SSP). On the DSP are the advertisers who want to publish their ads online and individually, and on the SSP are the publishers whose websites or networks display the ads.
The starting point for the advertiser is a so-called trading desk, where the campaign with all its attributes/data and ad creatives is set up. This trading desk then targets the market of publishers. Trading desks are typically teams that operate programmatic advertising systems or a system.
The ad spaces of publishers, targeted via Programmatic Advertising, deliver the banners based on a real-time auction process (real-time bidding) or a set contingent price in conjunction with the user relevance of the campaign. This process runs automatically based on the preset setup (user data, region, period, budget, etc.) and mathematical algorithms.
„PRECISE TARGETING THAT HOOKS THE TARGET AUDIENCE"
Sounds complicated? But for you as an advertiser, it’s not that difficult. We would be happy to personally explain all the possibilities that Programmatic Advertising offers for your business! Simply click the button below and fill out our contact form.