PROGRAMMATIC ADVERTISING – USING MICROTARGETING FOR MORE EFFICIENT ONLINE ADVERTISING

The term programmatic advertising (PA) has been floating around the various online spheres for some time now. But what's behind it? To put it simply: “Data-driven, automated online advertising.” With programmatic advertising, the fully automatic, individualized purchase and sale of online advertising space is carried out and the targeted, tailored display of advertising is controlled based on existing (and collected online) user data.

WHAT CAN PROGRAMMATIC ADVERTISING ACHIEVE?

Above all, PA can significantly increase the efficiency of online advertising - in terms of the selection of platforms, targeting of the target group and media purchasing. Instead of booking advertising statically on pre-selected online platforms, the advertising banners are delivered where our target groups actually are.

Programmatic systems can be fed with a variety of user data, which makes targeting extremely precise. Insights from the analysis of your own website visitors can be used to define segments whose like-minded relatives (or statistical twins) are “surfing around” the web and are just waiting to be addressed with the right message. And this is exactly what we target with programmatic advertising.

AUTOMATIC OPTIMIZATION AND SHARPENING OF THE CAMPAIGN

The big advantage of a programmatic campaign is the optimization of banner delivery and target group targeting during its runtime. User interactions with the campaign are analyzed “live”, evaluated and used for (automatic) optimization.

In addition, this optimization process guarantees interactions with the advertising banners and the connected target pages. i.e. The advertiser receives a concrete estimate in advance of how many leads will be reached and at what CPC (Costs per Click). This goes so far that guaranteed CPC and landing page visits can be defined after preliminary modeling of the campaign.

HOW DOES PROGRAMMATIC ADVERTISING WORK TECHNICALLY?

Programmatic advertising basically has two sides or levels. The Demand Side Platform DSP and the Supply Side Platform SSP (also Sell Side Platform). The DSP contains the advertisers who want to publish their advertising online and individually, and the SSP contains the publishers on whose websites or networks advertising is published.

The starting point for the advertiser is a so-called trading desk, through which the campaign is set with all attributes/data and advertising materials. This trading desk then controls the publisher market. Trading desks are usually teams that operate programmatic advertising systems or a system.

The publishers' advertising spaces, which are controlled via programmatic advertising, deliver the banners based on a real-time auction process (real-time bidding) or based on an achieved quota price in conjunction with the user relevance of the campaign. This process runs automatically based on the preset setup (user data, regionality, time period, budget, ...) and mathematical algorithms.