The evolution of technologies has radically changed the way media is negotiated in the digital environment. Therefore, programmatic media has emerged to increase assertiveness and efficiency both in the process of buying and selling advertising.
If before, traditional negotiations of insertions were carried out manually and interpersonally, involving inventory reservation, price definitions, sending of creatives and reports, now all these steps can be performed automatically and in real time. This is thanks to programmatic media: a way of marketing media in a fully automated and segmented way for specific audiences.
By combining data with technology, programmatic allows us to broadcast the best creative based on the user’s interests, on the most appropriate channel and at the right time.
To do this, programmatic platforms identify consumers through cookies and the collection of data available on the Internet that provide valuable clues about browsing behavior and consumption habits.
Therefore, communication is no longer massified and becomes personalized and directed (one to one), increasing the efficiency of actions and reducing the waste of funds. And that is exactly why programmatic media has become so strategic for brands and is expected to generate US$ 98 billion worldwide by 2021, according to Zenith.
How does programmatic media work?
Programmatic ad space transactions take place through auctions and preferential negotiations and are mediated by an ecosystem of platforms and specific technologies. In this process, it is possible to create highly accurate segmentations for the display of more assertive ads to consumers, based on data about behaviour, profile and other characteristics.
Real-time bidding (RTB) is the most widely used programmatic media buying and selling model. It is a real-time auction system used to negotiate remnant inventory (i.e. publishers’ ad spaces that have not been negotiated with some kind of exclusivity).
So that everything works in fractions of a second, the RTB system encompasses various technologies and platforms that facilitate the provision of advertising spaces by vehicles (publishers) in a 100% automated manner. Here, the purchase occurs by means of an auction, where the advertiser offering the highest bid wins the media.
In this way, RTB benefits both the vehicles, by optimising the sale of inventory, and the advertisers, by connecting the advertisement to the most valuable audience and reducing media waste.
It is worth noting that not every programmatic media transaction occurs via RTB. In addition to the open auction, there are negotiation models in private and restricted auctions, in which the publisher gives priority or preferential access to certain advertisers.
Programmatic Media: the main technologies of this ecosystem
The programmatic media chain is known for being extremely complex, as it involves several players both on the selling and buying side. Thus, a true “alphabet soup” as they say, due to the famous acronyms DSPs, SSPs, DMPs, among others. Now, below, we detail some of these main technologies:
Demand Side Platform (DSP)
Platforms that optimise digital media buying and allow advertisers to bid on publishers’ inventory available on AdExchanges or private marketplaces. These softwares, for example, help marketers invest their budgets always seeking the best cost-benefit.
This is possible because DSPs automatically prioritise the impressions that match the target audience and the requirements of each campaign. Therefore, the DSP business model is based on cost per thousand views (CPM).
Sell-side Platform (SSP)
While DSP is used by those who buy media (demand side), SSP is the platform that gives publishers the opportunity to offer their inventory in an automated way. DSPs analyse potential buyers in real time, always seeking to maximise the price per impression in order to increase the value of the vehicles’ inventories.
Data Management Platform (DMP)
As the name implies, this is a platform for managing data from various sources. For example: cookies, IDs, CRM data, mobile data, clicks and others.
This solution captures, organizes, stores, and makes data available to be used in targeting ads.
Therefore, DMPs provide an integrated view of data, allowing you to create a unique user profile and group customers into valuable clusters. Here at AGX, we use Tail Target as a DMP, but there are others on the market, such as Navegg, Hariken and BlueKai.
São marketplaces online que realizam intermediação entre compradores e vendedores de anúncios com objetivo de facilitar as negociações por meio do leilão em tempo real.
Possibilitam a compra de inventário de diversas SSPs em um único lugar, aumentando o alcance da compra. Entre os players, estão Google, OpenX, Yahoo, Rubicon e outras empresas.
Dentre outros players do ecossistema de mídia programática, há também as ad networks, que são empresas que compram e revendem inventários de terceiros. Além das agency trading desks (ATD), as agências que operam DSPs e gerenciam a compra de mídia programática para seus clientes.
Why is programmatic media strategic for business?
Targeting by audience
Unlike traditional media trading, which uses pre-defined volumes of data, programmatic performs the segmentation of each site by audience flow. Therefore, behavioural averages are used as reference.
More intelligence in purchases and contextualization
Programmatic media is an efficient, assertive and 100% automated way of buying advertising space in premium digital environments. With this, the model ensures that the appropriate ad is broadcasted for each consumer at the most decisive moment of the purchase journey. In a scalable, flexible and agile manner.
Centralisation of negotiations and total control of deliveries
By centralising the purchase of media advertisements through an adserver, the advertiser can obtain control over the frequency and reach of advertisements, eliminating overlaps and offering a better user experience.
Different formats and screens
In addition to the already established banners (display), several other ad formats can be purchased programmatically. Such as: video, audio, native formats, responsive formats on mobile, desktop and apps. So that means the possibilities even include TV and out-of-home (OOH)!
Branding and performance campaigns
Programmatic can be used both for strategies that aim to generate awareness of your products, and for strategies that aim to bring results related to sales and lead generation.
Higher ROI at the end of the day
Thanks to machine learning algorithms, programmatic advertising guarantees greater bidding efficiency for advertisers, resulting in better conversions, on-target delivery and optimized budget management.
Where to start?
More than an ad negotiation model, programmatic media today is a vital comparative asset for companies that have discovered, by connecting data, technology and creativity, how to promote the best experiences to their customers and be relevant in a world so full of information.
Your company needs a strategy to activate the best data available and to plan and execute campaigns according to your business objectives. So, if you are an advertiser and want to experience the programmatic universe to engage consumers with your brand, contact the experts at AGX for a no-obligation conversation!