The evolution of technologies has radically changed the way media is negotiated in the digital environment. Therefore, in that vein, the programmatic media has emerged to increase assertiveness and efficiency in both the buying and selling process of advertising.
If before traditional insert negotiations were carried out manually and interpersonally, involving booking inventory, setting prices, sending creatives and reports, now all these steps can be performed automatically and in real time. This is thanks to programmatic mediaThis is a way of commercializing media in a totally automated and segmented way for specific audiences.
By merging data with technology, programmatic allows you to serve the best creative based on user interests, on the most appropriate channel, and at the right time.
To do this, programmatic platforms identify consumers through cookies and the collection of data available on the Internet that provide valuable clues about browsing behavior and consumption habits.
Therefore, communication is no longer massified and becomes personalized and directed (one to one), increasing the efficiency of the actions and reducing the waste of funds. And this is exactly why programmatic media has become so strategic for brands and should move $98 billion worldwide by 2021, according to Zenith.
How does programmatic media work?
The programmatic transactions of the ad space take place through auctions and preferential trading and are mediated by an ecosystem of specific platforms and technologies. So, in this process, you can create segmentations for the display of more assertive more assertive ads to consumers, based on data about behavior, profile and other characteristics.
O Real-time bidding (RTB) is the most widely used programmatic media buying and selling model. This is a real-time auction system used to negotiate remnant inventory (i.e., the publishers’ ad spaces that have not been negotiated with some sort of exclusivity).
So, for everything to work in fractions of a second, the RTB system encompasses several technologies and platforms that facilitate the availability, in a 100% automated way, of the advertising spaces by the vehicles (publishers). Here, the purchase occurs by auction, where the advertiser who offers the highest bid wins the media.
In this way, RTB benefits both the vehicles by enabling optimization of inventory sales, and the advertisers by connecting the ad to the most valuable audience and reducing media waste.
It is worth noting that not every programmatic media transaction occurs via RTB. In addition to the open auction, there are negotiation models in private and restricted auctions, where the publisher gives priority or preferential access to certain advertisers.
Programmatic Media: the main technologies of this ecosystem
The programmatic media chain is known to be extremely complex, as it involves many players on both the sell and buy sides. Therefore, ureal “alphabet soup” as they say, due to the famous acronyms DSPs, SSPs, DMPs, among others. Now, below, we detail some of these key technologies:
Demand Side Platform (DSP)
Platforms that optimize digital media buying and allow advertisers to bid on publishers’ inventory available on AdExchanges or private marketplaces. This software, for example, helps marketing professionals to invest their budgets always seeking the best cost-benefit.
This is possible because DSPs automatically prioritize the impressions that match the target audience and requirements of each campaign. Therefore, the DSPs business model is based on cost per thousand views (CPM).
Among the major players are Google’s Display and Video 360 (DV360), MediaMath, Verizon (Oath), and others.
Sell-side Platform (SSP)
While DSP is used by media buyers (demand side), SSP is the platform that gives publishers the opportunity to offer their inventory in an automated way. The DSPs analyze in real time the possible buyers always seeking to maximize the price per impression, in order to valorize the vehicle inventories.
Data Management Platform (DMP)
As the name implies, it is a platform for managing data from various sources. For example: cookies, IDs, CRM data, mobile data, clicks, and others.
Thus, this solution captures, organizes, stores, and makes data available to be used for ad targeting.
Therefore, DMPs provide an integrated view of data, allowing you to create a unique user profile and group customers into valuable clusters. Here at Super Plural, we use Tail Target as our DMP, but there are others on the market, such as Navegg, Hariken, and BlueKai.
Ad Exchanges
They are online marketplaces that mediate between buyers and sellers of ads with the goal of facilitating negotiations through real-time auctions. They make it possible to purchase inventory from multiple SSPs in one place, increasing the scope of purchase. Among the players are Google, OpenX, Yahoo, Rubicon, and other companies.
Among other players in the programmatic media ecosystem, there are also the ad networks , which are companies that buy and resell inventory from third parties. In addition to agency trading desks (ATD)the agencies that operate DSPs and manage programmatic media buying for their clients.
Why is programmatic media strategic for business?
Audience segmentation
Unlike traditional media negotiation, which uses pre-defined volumes of data, programmatic performs the segmentation of each site by audience flow. Therefore, behavioral averages are used as a reference.
More intelligence in purchasing and contextualization
Programmatic media is an efficient, assertive, and 100% automated way to buy advertising space in premium digital environments. With this, the model ensures that the right ad is served for each consumer at the most decisive moment of the buying journey. In a scalable, flexible, and agile way.
Centralization of negotiations and total control of deliveries
By centralizing the purchase of media ads through one adserver, the advertiser can gain control over the frequency and reach of ads, eliminating overlap and offering a better user experience.
Different formats and screens
In addition to the well-established (display) banners, several other ad formats can be purchased programmatically. Such as: video, audio, native formats, responsive formats on mobile, desktop, and apps. So, this means that the possibilities even include TV and out-of-home (OOH)!
Branding and performance campaigns
Programmatic can be used both in strategies that aim to generate more awareness for your products, and in strategies that aim to bring results related to sales and lead generation.
Higher ROI at the end of the day
Thanks to machine learning algorithms, programmatic advertising guarantees advertisers greater bidding efficiency, resulting in better conversions, on-target delivery, and optimized budget management.
Where to start?
More than just an ad negotiation model, programmatic media today is a vital comparative asset for companies that have discovered, by connecting data, technology, and creativity, how to promote the best experiences to their customers and be relevant in a world so full of information.
Your company needs a strategy to activate the best available data and to plan and execute campaigns according to your business objectives. So, if you are an advertiser and want to experience the programmatic universe to engage consumers with your brand, contact the experts at Super Plural for a non-binding conversation!
