You’ve probably heard of programmatic advertising. As with all new and fast-growing advertising technologies, there’s often confusion as to what exactly it involves. Programmatic advertising is essentially the buying of ad space in an automated way. It uses audience data and insights from a variety of sources, to allow advertisers to show highly relevant ads for the audience, at the right time and in the right place. The biggest benefit of programmatic advertising is that advertisers can be incredibly specific with their ads relevance to the audience, because of the amount of data available on audiences. The data and targeting is very powerful and because the process takes place in real time and is assisted by automated bidding decisions based on data, it reaches the right audience, at the right time, in the right place. This simply isn’t possible with traditional display advertising which is negotiated with publishers and bought upfront.
Programmatic media buying includes the use of DSPs, SSPs and DMPs. DSPs, (demand side platforms) which facilitate the process of buying ad inventory on the open market, provide the ability to reach your target audience due to the integration of DMPs (data management platforms).
DMPs collect and analyze a substantial amount of cookie data to then allow the marketer to make more informed decisions of whom their target audience may be.
On the publisher side of things, publishers manage their unsold ad inventory through an SSP (supply side platform).
An SSP reports attention data such as how long a visitor was on a specific site or how many pages were viewed per visit.
SSPs will ultimately be in charge of picking the winning bid and will serve the winning banner ad on the publisher’s site.
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