What does Programmatic meanWhich means Programmatic?
Say, what does it mean to buy RTB programmatic ads?
Purchasing advertisements in electronic means is witnessing a period of development of systems using the use of technologies to connect in real-time the major actors in the purchasing and sale of on-line advertisements. A system that uses the performance of DSP (Demand Side Platform) platform algorithmic tools to concurrently provide real-time accessing to globally available inventory with thousand of ad serving per second that adapts to what each advertisers are looking for.
What is interesting about the programmatic purchasing system is that it is an automatic procedure that allows you to buy space in all ad exchanges, support and websites through the same console. This is certainly not done by looking for an existing audience, but by using a target group purchase paradigm made up of people.
In the White Book of Programmatic Buying/RTB issued by IAB Spain, the association representing the Spanish promotional, commercial and communications sectors, the programmatic buy is understood to mean "the implementation of on-line buying through quotes or robust quotes using technology using algorithmic approaches that determine the conditions of market demands and are capable of making the most appropriate buy for the goals of the campaigns, defining them in the form of profile, prices, values or other parameters determined and identifiable by the purchaser, and executed in real-time".
Thus the programmatic purchase refers to 3 people: 3 people: one each: the customer and the other: In addition to marketers, there are two kinds of stakeholders involved in the process: Press agencies: It helps a brand pinpoint the best ways to be present in the market. Often they are the purchasers of ad spaces for their customers, the promotional brand.
Though in some cases it is mistaken for tech, this concerns the engineering staff in charge of optimising the programmatic purchasing of its various recruiters. When there are no people visiting areas where brand ing can convey effective message, it would be difficult for marketers to get results.
There are also media-specific ad nets representing several publishing houses. As you can see in the above diagram, it is necessary that the following elements are performed for programmatic purchasing and RTB to work: There are up to 5 kinds of technology tooling in this case that enable programmatic purchasing:
It is on this stage that bidding takes place in Real Times and the results obtained are quantified. It is therefore indispensable because it automatizes a procedure that previously could only be performed manual by the advertiser. Here the offers of various different medias and publishing houses came together.
It is the technological solution that links the vendors, who are the publisher who provides the space, with the recruitment agents, who are the advertiser who have to rent the space in which their advertisements are placed. This allows a kind of offer in which vendors make their space available to all potential and potential buyers.
Datamanagementplattform ( DMP ): The system comprises a central database system. The aim is to help marketers identify their audience on the basis of a mix of information from different source. In general, this is the information that the DMPs work with: the information that the DMPs work with: First party dates: This means information gathered from the advertiser's own sources: his website, his premises in various types of online advertising, email advertising campaign, displays or his own customer relationship model.
Third Vendor Data: Here is information gathered from outside the advertiser's work. As a rule, they are composed of information on the user's ages, sex, socio-professional categories, geographic position or interests. This is the type of software used by trading desk agents to automatically handle the purchasing of advertisements from online marketing companies.
RTB (RealTimeBidding) is a real-time tendering system for each of the images of an ad in each of the ad space of a website. One of the axles on which programmatic purchasing is built, the RTB system goes beyond the conventional way of handling digitally displayed advertisements using the CPM approach (cost-per-house impressions).
The RTB system thus incorporates RTB technologies and know-how into a millisecond process: . The necessary information is gathered through the use of cookie to compile your user profiles. True real-time bidding shows that it is appropriate for all participants. It gives publishing companies the opportunity to generate more revenue by opening inventories to a sourcing store that maximizes the value of each one.
It not only shows a prospective client that is willing to buy your products, but also on a level of technical assistance and at a point when it is more likely to attract their interest. This would all be unthinkable without the capability to create and analyze billions of pieces of data on the fly:
Large dates. They are the ones that provide information to the whole programmatic purchasing cycle. Intelligently using billions of pieces of data enables the various technology plattforms to do their work. Without this kind of analyzing, it would be difficult for the DMP platform, for example, to determine the users' profiles.
To do this, they must intersect the advertisers' and publishers' information, which they gather in a variety of ways over the web. Moreover, it is the correct reinterpretation of these million of pieces of data that allows the definition of every criterion for each particular offer in infinitesimally small proportions of times.
Various procedures of the incumbent marketing distribution system will work. Yet automating, built on tens of millions of pieces of information on which programmatic purchasing is built, enables the development of more intelligent purchasing strategy for the medium through real-time tendering, which will inevitably lead to more and more actors introducing it into their business.
Up to now, the acquisition of advertisements in electronic mediums has followed a personalised strategy which compares advertisements with websites to achieve appropriate results. By 2017, however, the investments in on-line shop displays will show double-digit annual growth rates due to programmatic purchasing. Evidence points to the gradual integration of the programmatic purchasing proces.
The eMarketer figures shown in the preceding chart show that this year, 2016, the programmatic purchase of displays in the United States will achieve up to 22.10 billion U.S. dollar. Even more interesting, more than two third, 67% of all displays are program-controlled.
A further interesting fact is that it relates to the importance of portable communication media, which support most of the increase in programmatic shopping. By 2016, programmatic mobiles will have reached 15 in the United States. $45 billion, 69% of all programmatic investments. As for the programmatic videos, the numbers indicate that this year will be the focus.
Over half of the investments in electronic videos are made with program-controlled purchases. With programmatic purchasing, many different purchasing parameters interfere between very different items. Therefore, it is not simple to control the entire lifecycle. In order to help company marketers, a periodical system of programmatic purchasing items was made.
The following chart classifies the recurrent items of programmatic purchasing into the following 5 groups: There are the following classifications, which refer to the advertisement surface which can be rented: Dates: Refer to the different kinds of information that come into the picture during programmatic shopping: Targeted dates. This programmatic purchasing modell provides several benefits over conventional models:
Not only does it allow you to achieve an estimated percent of clients using a combined site and ad approach, but it also allows you to achieve those clients you really want to achieve segmentsation thanks to algorithm that take into consideration not only the user's image but also their behaviour in the virtual world.
They can achieve much more using electronic means than a simple handfull. A lot of medias fill their whole stock and not only the not sold articles. Moreover, customer recipe segmentation can be aggregated to achieve a massively larger order of magnitude that enables greater price optimisation and much more precise purchasing of funds that improve by being able to gauge conversations in real terms.
For more information on how to conduct optimised programmatic promotional activities, do not hesistate to ask our programmatic RTB advertisement specialists for the information here.