Programmatic Advertising 101
The evolution of programmatic ad buying is a never-ending cycle. Businesses, Internet Managers, Marketing Directors and Ad Agency’s, tend to have a hard time keeping up from a video, display, audio, connected TV, native and more.
The number of options available to media buyers and brands tends to be so overwhelming and at times feel impossible to understand.
Navigating through this sea of not just advertiser but DMPs, DSPs, SSPs… The fucken jargon itself can drive anyone crazy and tired of listening to “experts” explain their way through a sales pitch.
Before you can begin, you must understand what programmatic is.
The IAB defines Programmatic as ******
Automation of buying and selling ads in an RTB (Real-Time Bidding) environment. These Programmatic deals consist of ad inventory from anything like display, video, audio and more.
The origins of programmatic started as a way for the publisher to sell their remnant inventory. Over time it has become much more sophisticated, and many companies have tried to adopt programmatic as a product offering but failed to understand the technology.
One of the most misunderstood concepts about programmatic is that RTB is programmatic. RTB is a form of automation that a buyer DSP can utilize to buy and sell ads instantly. Think of RTB as a digital stockbroker and programmatic is the full behemoth and the entire ecosystem from the advertiser’s side to the sell side and all the ad tech in between that makes the magic happen. If you buy ads from Facebook or AdWords in a way you are already utilizing a form programmatic on those platforms, but there is an enormous ocean of ad tech companies and data points you must understand to take advantage of programmatic’s full capacity. Programmatic requires a deep understanding of audience pools, data strategies, analytics and conversation tactics.
Merely measuring traffic and CTR (Click Through Rate) is not good enough anymore.
Programmatic has many acronyms like DSPs, SSPs, DMPs, and APIs making programmatic seem complicated, even more, complicated is when media vendors use it and add their twist or internal acronym should have no business in this platforms vocabulary.
The heart of programmatic and what makes it so appealing to brands is the data technology used to target audiences. This vast amount of data enables brands and agencies to deliver and scale ads to devices in a much more effective manner. Being able to provide ads that are relevant instead of random is what makes programmatic ads buying much more personal to users. However, the programmatic ecosystem can be complicated to execute and again to rely on impressions, CPMs and site traffic as a measurement is not what nor should be the way you buy ads. Digital is not Traditional, and you shouldn’t purchase digital ads the same way you are buying TV or Radio ads. I know that sound silly, but we see it all the time with our client who relies on us for guidance.
Yes, programmatic can seem complicated but only if you are being taught by a vendor who only understands how to pitch and not understand the fundamentals of how it all comes together in a full digital marketing campaign.
Here are six areas you should understand:
- Planning & Buying
- Media Enhancement
- Business Intelligence
We are true digital chameleons because we not only live and breath this space but we also execute our campaign and optimize our client’s campaign to hit an overall goal and not just a metric we want you to see.