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OMISMEDIA – Performance Based Marketing

What is programmatic advertising

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What is programmatic advertising

Getting into marketing field means understanding of its lexicon and main approaches and trends. Current mainstream is programmatic advertising. Its definition is often referred to RTB technologies, that is half true. As the area is becoming more and more in demand it is high time to read our useful article to understand what it is about.

Programmatic ads buying means automatic or algorithmic process of purchasing ads. I.e. it refers to buying impressions or target actions through automated platforms and not directly from publishers

Why it is so important?

Before inventing programmatic media buying, the whole buy-sell process was manual. Networks used to buy inventory from several Publishers in the gross and sell it to Advertisers. The issue of transparency was out of the question at that moment.

Sellers, requests from Buyers and human factor with resulting errors were involved in the process. Thus, the scheme was fragile, glitchy and unreliable.

Programmatic won due to an opportunity the purchasing process quick, more effective and less expensive.

Advertisers can thoroughly study their ad campaigns with the help of extra fine users targeting. They see ads in the right place and at the right time. Thus, productivity is also strictly controlled.

Each company that wants to have programmatic advertising campaign should understand that a key secret here is data. Otherwise, all your activities are no more than guesses like searching a needle in a haystack. All necessary information to make decision about buying this impression or not, an Advertiser can find in cookie files: they collect impersonalized information about location, device type, some behavior.

An example how programmatic works

Let’s imagine, we have a website – www.thetimes.co.uk that sells its inventory to different ad exchanges that hold auctions. And some brands like Zara Home, BritishAirways, Harrods’ and Marks&Spencer participate in biddings and get a request that a visitor is entering the website of the newspaper.
According to cookies it is a male in his mid-thirties who is married, have children and likes travelling and interested in home decoration.
Marks&Spencer would like to offer him a new collection of clothes.
Zara Home can show him an ad about things for the house.
Harrods has a big department with toys that may be interesting for a person with children.
BritishAirways sees him as his potential customer as the person likes travelling.

The parties are bidding and what we have in a result:
A bid from clothes shop was too low.
Zara Home ads cannot be published as the Publisher banned it at all.
Harrods has offered bigger bet and thus has shown its ad.

The page was loaded, the game is finished.

Have you already tried programmatic media buying? What has excited you most of all in it?

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