Here you will get basic information on how it works and the main types of this online marketing tool. You will also learn about the benefits of Programmatic Advertising for your business.

What are the basic functionalities of Programmatic Advertising?

Programmatic advertising allows brands to buy ad impressions on publisher websites or apps more efficiently and quickly via automation. This reduces acquisition costs for new customers while increasing conversions.

At the same time, Programmatic Advertisement addresses one of the biggest weaknesses of the traditional offline method of advertising: because the manual method is not only time-consuming and expensive. It also offers no way to determine return on investment (ROI) and is thus opaque.
Programmatic advertising, however, relies less on people and more on programs to place ads on the Internet. It does this by using a program to buy and sell advertising space from publishers.

Based on special algorithms and artificial intelligence, programmatic advertising uses available user data to determine which banner ads or commercials – tailored specifically to that user – may be played.

What are the four types of Programmatic Advertising?
1. What is Real Time Bidding (RTB)?

Bidding in real time on an open marketplace is probably a term familiar to many. Mainly due to its widespread use, RTB has become a kind of generic term for Programmatic Advertisement. With RTB, a banner space is auctioned off automatically and in real time to the highest bidder. Die Anzeigenplätze stehen dabei jedem offen. However, Programmatic Advertising offers different variants and extensions.

2. What is Private Marketplace (PMP)?

The Private Marketplace, also called Invitation-Only Auction, is similar to RTB, i.e. an open auction. The difference is that it is only available to a limited number of auction participants. Publishers set aside a premium ad inventory that is only accessible to selected advertisers.

3. What is meant by preferred deals?

Preferred deals refer to the opportunity for advertisers to select ad inventory at a fixed price before it is available on private marketplaces and subsequent open auctions. In this process, both parties agree on the price beforehand and the advertiser gets an insight into the publisher’s ad inventory. In addition, the purchase is not binding.

4. What is Automatic Guaranteed?

Automatic or Programmatic Guaranteed follows the traditional approach of media buying. Here, advertisers and publishers negotiate terms based on a one-to-one model. Automatic Guaranteed works without an auction and is used by companies that know exactly where to place their ads and have large advertising budgets at their disposal.

Programmatic Advertising – Auctions via Software

Programmatic advertising is based on special software: Supply-Side Platform (SSP): this is a technology platform that enables web publishers to manage their advertising inventory – i.e. display, mobile and video ad impressions – to generate revenue. Demand-Side Platform (DSP): This software enables agencies and advertisers to buy ad inventory across platforms. Ad Exchanger: An ad exchange is an electronic marketplace where advertising inventory is offered and auctioned in real-time. The DSP connects to the ad exchange, enabling advertisers, agencies, networks and publishers to buy or sell ads. Prices are agreed via the bidding process.

What are the advantages of programmatic advertising? 1. Greater transparency

Finally, advertisers can understand exactly how their budget is being spent. Because since they know what ad inventory they will buy and what audience they will target, they can track the performance of their ads. Campaigns can consequently be optimized in real time to achieve the desired success.

2. Real-time information

With traditional advertising, it usually takes a long time to see the results of ad campaigns, and there is no accurate way to determine their effectiveness precisely. In addition, it’s hard to track ROI. Programmatic advertising, however, provides companies with real-time information about the performance of their advertising campaigns. As a result, advertisers can use this campaign data to gather more information about their target audience and campaign. Outstanding campaigns can therefore be optimized.

Programmatic Advertising also for your business – SMCL supports you

Our agency helps your business to implement your marketing strategies and online campaigns. Of course, we also focus on Programmatic Advertising. Achieve the best possible results for your customer service with the help of Social Media Content Lab. If you are also interested in Programmatic Advertising, we look forward to hearing from you.