Ability of programmatic advertising are reaching beyond limits and are getting benefited with quickly, accurately and cost-effectively targeting huge audience. It is rapidly reshaping the media business. Marketers want to reach their desired audience across all channels and devices from a single platform. Publishers want to present audiences for their properties defined by specific interests and behaviors. Programmatic ad buying brings the two together across web, mobile, video,social and beyond.
Conventionally, advertisers have booked digital media from a single source, in advance. Ad serving networks scaled up the process, letting advertisers buy impressionsacross multiple sites based on a single customer profile. More recently, ad exchanges have directly connected advertisers or agencies with sellers or affiliates. Programmatic changes all that. Its sophisticated data and technology-driven infrastructure let buyers bid for impressions on demand in a real-time marketplace – otherwise known as Real-Time Bidding (RTB). With huge amounts of inventory to choose from, buyers can carveout precise selections from millions of options. This way, advertisers can deliver precisely the right message to those consumers most likely to buy their products and services – at the optimum time and in the correct context. They can buy space when exactly theright user is browsing a page or serve ads based on the weather conditions at a consumer’s location.
Demand-Side Platforms (DSPs) lie at the heart of programmatic buying. DSPs give both agency trading desks and end-user client buyer’s sophisticated tools with which todefine budget, reach, audience and content for their campaigns. Based on those parameters, a DSP uses bidding algorithms to bid on a client’s behalf in many different real-time auctions simultaneously, automatically adjusting the bid price and impressionselection to achieve the campaign goals.
Digital marketers employ many different techniques to track users online, from traditional cookies and IP address to methods like HTTP authentication, pixel tracking, query strings and hidden form fields. Cookie and pixel-based tracking are the most common methods used in programmatic buying.The tools available for ad buying, targeting and tracking don’t end with the DSP. Other applications add extra functionality to help improve ad placement and performance. It’s vital to remember that vendor specifications vary enormously and that many – or even all – of the features described below will also be offered within many programmatic platforms.
Availability of premium inventory is the success of programmatic marketing. Innovations like private marketplaces and programmatic direct however are rapidly attracting publishers into the fold who don’t necessarily want to sell by auction. In future the performance and cost benefits with programmatic advertising will bring more opportunities in marketing.