When it comes to content monetization, there is a huge variety of solutions and ideas to explore. Nevertheless, one of the most straightforward and the least draining on publisher’s resources is digital advertising. The question is how to optimize your monetization strategy to get the most for your website content? That where the automation comes into focus, saving time, efforts, bringing additional revenue, and additional opportunities for every party involved in the digital advertising process. That is also the reason, why programmatic was invented.
What are actually programmatic ads?
Programmatic is an automated buying of advertising on real-time auction. Also, this technology includes direct sales and limited auctions. It allows us to improve targeting and actually move from buying places and impressions to paying for the target audience.
What’s the difference between programmatic and RTB?
Real-time bidding technology is one of the programmatic ads buying types. It refers to ad buying through real-time auctions (more information about the meaning of RTB you can find here). Also programmatic can give advertisers a possibility to purchase guaranteed ad impressions in advance from certain publisher sites. This method is frequently called as “programmatic direct”. Why are programmatic ads better than other solutions? The keyword is efficiency. Earlier, ads were traded by a human, whose service might be costly and unreliable. Automation makes ads buying cheaper and reduces human interference. Programmatic ads allow to spend more time on planning and optimizing campaigns.
Today, when we say “programmatic buying”, we mean the following:
- data on customers preferences
- tracking systems
- computer portraying of the consumer
- buying the right audience
- optimization of the prices at all stages of the funnel
- and in the long run - LTV (Lifetime Value).
When talking about automation we can draw an analogy between neural networks and programmatic software. It works with big data, learning all about customers choices and tastes. It uses dynamic ads to show customer specifically targeted advertising. The more time it learns - the more targeted the ads are. Apparently, this is the reason why SSPs (Supply/Sell Side Platform) exist.
In the previous years, SSPs worked with advertising networks, selling out remaining stock, which hasn’t got out by direct sales. However, nowadays revenue optimization evolved into worldwide independent services that provide targeting-based auction sales. Publishers work with SSPs without fixed CPC (cost per click), guided by the highest rate. The programmatic software provides SSPs with the ability to declare that they know what the customer really wants. Also, it grants SSPs the possibility to support and organize the connection from a seller to the eventual customer.
Programmatic ads are the future of ad buying. Agencies are eager to buy more media through programmatic channels. Major brands are even creating in-house teams to handle their programmatic ad buying. Therefore, via programmatic you, as a publisher, get access to more advertisers, than it was possible before. And, of course, earn more money.
Programmatic tech aspects
There are two sides involved in the process - a seller and a buyer. On the seller side, there are SSPs and direct publishers. The buyer interests are supported by the demand-side platforms, dealing with ad spots purchase.
How does it work?
- The user gets to the site via a link or from a search engine
- While the page is loading, the programmatic makes a request to Ad Exchange, where the DSP rates are accepted, to Ad Networks and advertising exchanges. It takes milliseconds.
- The data about site visitors is transmitted to the SSP for instant analysis of the information: IP, browser, request details, etc.
- Then the SSP starts an auction, and the Trading Desk, which bets, recognizes it.
- By choosing the top bid from advertisers the SSP increases the cost of the second bid by a cent and shows ads at this price.
- Finally, the advertisement is loaded in the browser of the customer according to the target audience.
One more solution for the web – Header Bidding
The header bidding technology allows supplying ad equipment from the advertiser to publishers. By letting multiple demand sources bid on the same inventory at the same time, publishers increase their revenues. It changes the process of ad selling, providing opportunities to many buyers simultaneously. Publishers have the possibility to choose the highest rate and increase the profit from the sold advertising. Compared to the traditional approach the profit increases from 10% to 30%.
Also, header bidding creates an equitable competitive environment for all bidders. Advertiser in this model has direct access to the top-quality inventory and can work with publishers without intermediaries. The last but not least, users see the most relevant advertising for them. Mobile programmatic ads Potential customers frequently use mobile phones to visit web-pages. Major retailers receive about 30% of their sales through mobile apps. That’s why the part of mobile programmatic in e-commerce markets is growing steadily. And that’s why app monetization solutions (both for android and ios) are so important.
Mobile programmatic advantages
Transparent pricing: DSP-platforms analyze the efficiency of ads and provide information about how much advertiser needs to pay the owner of an ad space. The threshold of the entrance to the mobile advertising channel via programmatic is much lower than with the package buying of ad space. Also, the cost of displaying ads in CPM (cost per thousand, with “M” as roman millennium) for mobile traffic is still significantly lower than for other channels (but, naturally, increases with narrowing of the target audience).
Improved targeting: In mobile advertising, we distinguish two significant and frequently non-overlapping segments: mobile web (with adaptation for small screens or without it); mobile app.
Brand safety: The appearance of the app on Google Play and App Store indicates that the application contains licensed content. Also, it meets the strict requirements for its security. Every application is tested on multiple sites by Apple experts before appearing in the App Store.
How could SmartyAds help?
SmartyAds is a digital advertising platform with a wide range of programmatic solutions for automation of advanced targeting options, digital ad buying process, and detailed campaign reporting.
We actively use all sorts of automation, such as programmatic ads for web-resources and mobile apps, header bidding, and other. These solutions provide us with the benefits of reaching a potential customer right up to the purchasing decision and even after the purchase. That’s why we can effectively connect publishers and advertisers to the best deals, and help clients to boost their revenues. Also, you can have a look at our RTB technology solution
Isn’t it convenient to press the programmatic magic button and get an awesome result without any additional risks?