The rise of Programmatic buying


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Online advertising technology continuously improves; new methods are daily tested so that advertisers reach more efficiently their target. The aim is to reach the right person at the right moment, which is why media buyers  progressively privilege programmatic buying.

This process only represents 25% of global digital ad purchase. However, specialists are very optimistic about the future of this technology. It is expected to reach 90% of digital ads buying by 2020 making it a crucial tool in advertisers’ strategy.

What is programmatic buying?

It is the automatized planning and ad purchase on digital platforms. It is an efficient and optimized manner to display ads combining a new technology and the use of data to identify what pair is better working then adapt to what is revealed. Programmatic solves problems of slowness, length and complexity of online ad purchase.

This new technology automatizes ad campaigns, operating the budget dedicated to each campaign while managing all the purchases from one unique platform, and all this in real time.  Purchase is processed on gigantic market places called “AdExchange” where, buyers (advertisers who want to display their ads) and sellers (publishers who sell their inventory) meet. Pricing is determined according to the dedicated area on the page; through a system of auctions, all the advertisers who want their ads to be displayed at this place will bid on the format. The so-called Real Time Bidding (RTB) drives inventory’s price up and offers the best CPMs to publishers.

 

Let’s take a concrete example:

 

An advertiser X selling kitchen utensils and dedicating a budget of 1000$ wants to diffuse his ad on culinary websites or blog (to be sure to reach his target). Once he has set all these information up in his software – to be able to sell his ads on AdExchanges Demand Side Platform – he will know everything in real time. He will then pilot his campaign and optimize its diffusion. As soon as a page meets with the expectations of the advertiser, the process starts automatically. The advertiser will start to bid on the expected area to win the auction and diffuse his ad on it.

 

This process which is usually dedicated to sell the unsold part of big editorial websites’ inventory starts to become more accessible. The number of users is constantly growing: targeting is more efficient for advertisers and CPMs are more lucrative for publishers.

 

The Moneytizer based their offer on this innovative and revolutionary concept providing small and medium publishers access to this technology.

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