is a powerful media tool whose task is to show ads to people who are most likely to be interested in your product, and to do this as quickly and efficiently as possible. This is achieved through automation, algorithms and the use of user data, such as their interests, online behavior, location and even demographic data.
Programmatic
Imagine that you are selling real estate. Programmatic will search for people who have recently been interested in this topic, viewed articles about or visited sites with similar offers. The moment such a person visits the site or application, the program automatically decides that it is your ad that needs to be shown to him.
How it works
The visitor gets to the site of a member of the
advertising network
advertising network
The network offers to show ads to the user and transmits data about him to the buyer platform
The buyer platform analyzes the data. This can be the subject of the site, demographic and behavioral information about the user
Based on the analysis, the buyer platform selects an advertisement that can be shown to a specific person
With the help of a real-time auction, the advertising network selects the ads with the highest bid and shows them to the user
Frequently Asked Questions (FAQ) about Programmatic and their answers
Programmatic is an automated process of buying and selling digital advertising using algorithms and technology. Instead of manually negotiating and making deals, the process is carried out through programmatic platforms in real time (RTB - real-time bidding), which makes it faster, more efficient and more accurate.
In traditional methods, advertisers make deals directly with publishers through agencies or other intermediaries. In Programmatic, ad buying occurs automatically through advertising platforms that use algorithms to optimize the process and achieve target metrics.
RTB is a process of auction-based ad buying in real time. When a user visits a website, Programmatic platforms hold an auction to determine who will show their ad to a specific user based on pre-set criteria (e.g. demographics, interests, behavior, etc.). The auction typically lasts milliseconds.
Advertisers using Programmatic platforms set up their campaign parameters (e.g. target audience, budget, creatives). The platform automatically buys ad space across different sites, sets up targeting, and optimizes ad delivery based on user behavior and other factors. All of this happens in real time.
There are many platforms for Programmatic that provide different features and campaign management options. Among the most popular are:
• Demand Side Platforms (DSP) - platforms for advertisers, such as Google Display & Video 360, The Trade Desk, MediaMath.
• Supply Side Platforms (SSP) — platforms for publishers, such as PubMatic, Magnite, OpenX.
• Ad Exchanges — marketplaces where DSPs and SSPs meet, such as Google AdX, Rubicon Project, AppNexus.
• Demand Side Platforms (DSP) - platforms for advertisers, such as Google Display & Video 360, The Trade Desk, MediaMath.
• Supply Side Platforms (SSP) — platforms for publishers, such as PubMatic, Magnite, OpenX.
• Ad Exchanges — marketplaces where DSPs and SSPs meet, such as Google AdX, Rubicon Project, AppNexus.
• Efficiency: Automation of the process allows you to respond faster to changes in the market and target audience.
• Targeting: The ability to set up targeting based on a large amount of data (demographics, behavior, interests, location).
• Optimization: Platforms automatically optimize campaigns to achieve the best results with minimal costs.
• Flexibility: The ability to test different creatives and settings on a real audience in real time.
• Targeting: The ability to set up targeting based on a large amount of data (demographics, behavior, interests, location).
• Optimization: Platforms automatically optimize campaigns to achieve the best results with minimal costs.
• Flexibility: The ability to test different creatives and settings on a real audience in real time.
• Fraud: Due to the complexity of the system, fraudulent cases may occur, such as bots, fraudulent sites or fake clicks.
• Inaccuracy: It is not always possible to guarantee 100% targeting detection, and in some cases, ads are shown to a user who is not part of the target audience.
• Transparency: Not all platforms provide full transparency about which sites the ads are placed on, which may raise questions about the effectiveness of budget spending.
• Inaccuracy: It is not always possible to guarantee 100% targeting detection, and in some cases, ads are shown to a user who is not part of the target audience.
• Transparency: Not all platforms provide full transparency about which sites the ads are placed on, which may raise questions about the effectiveness of budget spending.
Efficiency is measured using various metrics, such as:
• CTR (Click-Through Rate) - click-through rate.
• CPC (Cost Per Click) - cost per click.
• CPA (Cost Per Action) - cost per action (e.g. purchase, subscription).
• ROI (Return on Investment) - return on investment.
Programmatic platforms often offer built-in analytics tools to track these metrics.
• CTR (Click-Through Rate) - click-through rate.
• CPC (Cost Per Click) - cost per click.
• CPA (Cost Per Action) - cost per action (e.g. purchase, subscription).
• ROI (Return on Investment) - return on investment.
Programmatic platforms often offer built-in analytics tools to track these metrics.
• Use whitelists and blacklists: This allows you to control where exactly your ads will be placed.
• Use trusted SSPs and DSPs: Work with trusted and reputable platforms to minimize the risk of fraud and non-targeted placements.
• Campaign monitoring: Constantly monitor results and adjust campaign settings in real time.
• Use trusted SSPs and DSPs: Work with trusted and reputable platforms to minimize the risk of fraud and non-targeted placements.
• Campaign monitoring: Constantly monitor results and adjust campaign settings in real time.
Yes, Programmatic advertising is available for small and medium-sized businesses. Some DSPs offer small minimum budgets to start, and thanks to targeting, small businesses can direct their ads to the audience that is most likely to be interested in their product.
DMP is a platform for collecting and analyzing user data from different sources. It helps advertisers collect information about user behavior and build more accurate and effective campaigns based on this data.
• Display advertising: Banners, text ads, video ads on websites.
• Video advertising: Video ads that can be shown in various video players on websites.
• Native advertising: Integrated ads that look like part of the content.
• Mobile advertising: Ads shown in mobile apps and on mobile sites.
• Video advertising: Video ads that can be shown in various video players on websites.
• Native advertising: Integrated ads that look like part of the content.
• Mobile advertising: Ads shown in mobile apps and on mobile sites.
• Demographic data: Age, gender, education, profession, etc.
• Behavioral data: Browsing history, purchases, preferences.
• Geographic data: Location of users (based on GPS, IP address, etc.)
• Contextual data: Information about the content of the web pages on which the ad appears.
• Behavioral data: Browsing history, purchases, preferences.
• Geographic data: Location of users (based on GPS, IP address, etc.)
• Contextual data: Information about the content of the web pages on which the ad appears.
ADVERTISING EXCHANGES
