Ultimate Guide To Learning Programmatic Advertising
Programmatic advertising has become increasingly popular in today’s world. Lately, a lot of people are resorting to programmatic advertising to do their online marketing and are letting go of the old traditional methods. Even though it has become extremely popular and has become more of a ‘buzzword’, most people are still unaware and unfamiliar with it. So, what really is programmatic Advertising and why is it needed? Let’s look into it in detail:
Programmatic advertising can simply be understood as the modern way of buying ad and display space with the use of artificial intelligence. The use of machinery and software makes the process of buying the ad simpler, faster and more efficient than the traditional method that requires human intellect and skills such as negotiations, proposals, requests, and quotes, etc. This modern technology helps you to buy digital ad spaces and campaigns easily and effectively, without any hassle. Lesser human involvement means fewer mistakes and delays in the process, guaranteeing increased efficiency and transparency for both parties, one who advertises and the other who publishes. Although the process is highly automated, the need for human intellect has not been eliminated. With the help of this technology, humans can help in planning ads, improving the ads and optimizing those ads, which ultimately helps increase the efficiency and effectiveness of the entire process.
The biggest drawback of traditional advertising channels is that they only have their own sites where they show their ads. This means that all other sites that are not part of the network will not be shown or displayed. The same also applies to video ads. This is where programmer advertising helps you by being multichannel. It provides you with access to several ads and websites in various formats. You can advertise wherever you want to, be it mobile phones, laptops, desktops, tablets, and apps.
According to IAB estimates, the expenditure on programmatic advertising has increased from 28% in the year 2013 to 80% in the year 2018 and currently exists in different channels such as mobile, videos, display and other digital platforms. So, who uses Programmatic advertising?
Previously, big companies that had media agencies and a huge budget only used programmatic advertising but in the last couple of years, it has become so popular that it is also being excessively used by smaller brands across the globe.
Once you fully understand what programmatic advertising is, the next most important question that arises is, ‘How does programmatic advertising work in real life?’
When there is space for an ad on a website, the data that is gathered about the user and the data of the webpage are constantly sent back and forth for ad exchange. Then an auction takes place and everyone makes a bid. The highest bidder gets the ad space and all this process happens extremely fast, almost in milliseconds, without any delays.
So, is programmatic advertising success or a failure? To briefly answer this question, we can simply and safely say that it has been a great success because it gives a high level of efficiency and effectiveness of the process. According to the estimates in the US, the ad spending on programmatic advertising was $33 billion in 2017. However, $24.25 billion was spent through private market places. This is particularly because, in private exchanges, buyers exercise more control over their expenditure. The software is highly efficient in terms of time, money and resources. Since it plays a great role in monitoring and improving different areas of your ad, it is very important to let go of the traditional ways and opt for programmatic advertising.
Then there comes another important concern, which is how one can really do programmatic advertising? There are a few things that need to be kept in mind to be able to do this successfully. The first thing is to be well aware of your market place. As you are entering into a new domain, it is very crucial to do your research and get to know about it in detail.
The second most important thing to do is setting up goals and objectives. Digital marketing requires setting up goals and objectives from the beginning. This can be done by using existing data and information to make plans and strategies, both long and short term.
As programmatic advertising is heavily dependent on algorithms and human intellect, this can cause the ads to sometimes appear in inappropriate places. It is very important to make sure that the blacklist of your demand side is thoroughly monitored and kept up to date, to avoid inappropriate sites. Some platforms provide you with an opportunity to completely exclude certain categories from spending on the ads. However, if your product is sensitive, you can use a white list. This will clearly provide you with access to the sites that are approved rather than those that are unapproved or denied. This might turn out to be a bit more expensive but it saves your time and effort to a great extent and ultimately provides ease and convenience.
Last but not least, it is extremely important to monitor fraud. Frauds are very likely to happen and it might cost around $6.5 billion to an advertiser, which is quite a huge amount. This stresses the importance of monitoring fraud. In the digital world, programmatic ads are known to have a 16% fraud ratio, which is significantly lower in comparison to other kinds of display ads.
In light of the above-mentioned data, it can easily be concluded that programmatic advertising has numerous benefits over the traditional advertising approach. Over time, it has become extremely popular and well known because of the efficiency it gives.
About This Programmatic Advertising Guide
This guide offers the most insightful articles, educational videos, expert insights, specialist tips and best free tutorials about programmatic advertising from around the internet. The learning guide is split into four levels: introduction, basics, advanced and expert. You can learn at your own pace. Each item shows an estimated reading or watching time, allowing you to easily plan when you want to read or watch each item. Below you’ll find a table of contents that enables you to easily find a specific topic you might be interested in.
What Is Programmatic Advertising?
To put it short, programmatic advertising is a way to automatically buy and optimize your digital campaigns, rather than buying directly from publishers. Programmatic is designed to replace human negotiations with machine learning and AI-optimisation. The goal is to increase efficiency and transparency to both the advertiser and the publisher. This is often done through real-time auctions where ads are bought at the same as a visitor loads a website.
Beginner's Guide to Programmatic Advertising
Programmatic advertising is not the complete automation of the ad buying process. Traditionally you would have manually prepared insertion orders or ad tags, which can be menial but labor-intensive. With programmatic ads, humans have more time for the optimization and improvement of ads. What the software will mean, however, is that those who are doing the job will be able to better plan, better optimize and better target their advertising.
Programmatic Advertising Glossary
At its most basic, publishers use a supply-side platform (SSP) to put their ads up for sale, and advertisers buy those impressions by utilizing a demand-side platform (DSP). This is similar to online marketplaces — like Etsy, Amazon, and Ebay — where there is both a seller view and a buyer view, and they seamlessly work together.
Programmatic Advertising: Pros & Cons
There is always going to be cons to any ad buying solution, and programmatic is no different. If advertisers want cost and time efficiency and large amounts of traffic that can be tailored for their targets, then programmatic ad buying might be exactly what they need.
What Is A Demand-Side Platform (DSP) & How Does It Work?
A demand-side platform is software used by advertisers to buy mobile, search, and video ads from a marketplace on which publishers list advertising inventory. These platforms allow for the management of advertising across many real-time bidding networks, as opposed to just one, like Google Ads. Together with supply-side platforms, DSPs enable programmatic advertising.
What Is A Supply-Side Platform (SSP) & How Does It Work?
A supply-side platform is an advertising technology (AdTech) platform used by publishers to manage, sell and optimize available inventory (aka ad space) on their websites and mobile apps in an automated and efficient way. By using an SSP, publishers can show display, video and native ads to their visitors, and monetize their website and apps.
What Is Ad Fraud And How You Can Detect, Fight, Prevent It
Programmatic digital advertising fraud is a deliberate, malicious activity that manipulates with the delivery of ad content and prevents its serving to the targeted audience. One of its primary weapons is bots. These software programs that carry out the dirty work. AdTech attracts fraudsters with its money figures. Just think about it — the payouts are enormous and risks of penalty are limited.
How To Start Running Programmatic Advertising The Right Way
When picking a programmatic company, don’t be afraid to get tough. What ad exchanges do you partner with? What third-party data sources will I have access to? What are the different variables I can adjust my bid on? Do you have direct access to ad exchanges, or do you work with a DSP? Do you invoice with a dynamic CPM or fixed CPM?
How to Set Up Your First Programmatic Ad Campaign
It would be best if you had a strong reason behind the launch of your first programmatic campaign. Your advertising goal determines the settings of your future programmatic ad campaign. If you want to increase traffic no matter what, you will choose wider targeting options and a very general message on your creative. And if you’re going to decrease your ad spend, you need to select the sources with lower price floors.
Mapping The Right Programmatic KPIs To Your Goals
Success depends largely on how marketers define goals and set key performance indicators (KPIs), as well as their ability to adjust campaigns in real-time. Programmatic plans require fluid budgets and adaptability. Control freaks may be tempted to pre-plan every tactic of their campaigns, but it’s better to start broad, have a thesis on what could work, observe performance, and optimize your campaign based on that data.
Programmatic Campaign Optimization Tactics
Minor optimizations can be made on a tactical level to push spend towards delivery and performance. Minor optimizations include adjusting the bid for win rate and efficiency, or shifting your budget to higher performing tactics. You can also look at your top spending sites to see if they are meeting or exceeding your KPIs. If they are, increase your bid, and if they’re not, turn the site off.
Questions To Ask Your Programmatic Advertising Provider
While businesses are on this journey, managed services still have a role to play. However, in order to avoid some of the common pitfalls that can arise from entrusting a 3rd party provider with your budget, there are a number of questions you should look to ask, and you should be comfortable with the answers you receive. These are equally applicable when looking to compare potential providers.
The Pillars Of Programmatic Strategy
Programmatic is an ever-expanding sector that advertisers are exploring in an effort to reach more of their customers in an efficient manner. When asked how we develop programmatic strategy, I always provide the same simple methodology. It involves five core pillars that inform and direct our strategy and optimizations.
How To Develop A Programmatic Strategy
In a nutshell, by approaching programmatic with an agile mindset and budget, taking a bit of extra time to set up your goals, research your own data and web assets, implement the right technology and creative assets and map out your customer journey, you can feel confident about launching your own programmatic journey to success; surpass all your goals and maximise every new opportunity to drive superior performance from your advertising investment.
Programmatic In-Housing: Hybrid Models Let Advertisers Take Control
The reality is that bringing your programmatic in-house is far from simple. It is based on a complex technological infrastructure which needs significant investment and resource to make it work. Within the report, the IAB identifies areas such as talent recruitment, organisational buy-in, complex co-ordination of partner contracts and staff training and orientation as reasons why companies avoid this ‘full-bore’ approach.
Best Demand Side Platforms (DSP) For Programmatic Advertising
After the advertiser has inputted their desired target audience preferences into a demand-side platform (DSP), programmatic bids can be placed using Artificial Intelligence (AI). The auctions take place in the time it takes for web pages to load and the highest bidding ad will appear once the page has fully loaded. Understand some of the various programmatic platforms and make an informed choice about which would be best for your advertising.
Programmatic Advertising Case Studies
Done well, programmatic marketing ensures brands are only ever delivering helpful, relevant and timely content that has the desired effect. Done badly, however, it can have a detrimental impact on a brand. Here, we take a look at six case studies of brands that have leveraged consumer data to drive successful programmatic campaigns.
Further Reading: Best Programmatic Advertising Books
Introduction to Programmatic Advertising. This book offers the first comprehensive introduction to the world of programmatic advertising. If you are new to this revolutionary technology, it will help you get quickly up to speed. The book is intentionally relatively short and dense, so it can be read over a weekend – and then kept on your desk for reference.
Paid Attention: Innovative Advertising for a Digital World. This book explores how ideas move people and how advertising can and should change in response to changes in the communication landscape. Packed with real-world examples of campaigns from companies including Sony, Red Bull and HP, the book also contains practical advertising and branding templates and toolkits.
Data in Digital Advertising: Understand the Data Landscape and Design a Winning Strategy. This book is your ultimate guide to the advertising data landscape. It covers everything from basic concepts all the way to developing a successful data strategy. You will learn where advertising data comes from and how it flows around the ecosystem. It will help you understand what data is available for targeting from third-party vendors, as well as standalone advertising platforms such as Facebook, Google, or Amazon.
Programmatic Advertising: The Successful Transformation to Automated, Data-Driven Marketing in Real-Time. This fundamental guide on programmatic advertising explains in detail how automated, data-driven advertising really works in practice and how the right adoption leads to a competitive advantage for advertisers, agencies and media. The new way of planning, steering and measuring marketing may still appear complex and threatening but promising at once to most decision makers.
Further Learning: Best Programmatic Advertising Courses
Digital Advertising Strategy Course by the University of Colorado. This course takes a critical look at digital advertising tactics for small business. Students will learn how to generate and launch ad campaigns on small budgets with limited-to-no design skills. These courses include: 1) search (Google Ads), 2) social media (Facebook, Instagram and Twitter) and 3) native advertising (Taboola).
Introduction to Programmatic Advertising – Digital Marketing. This course will walk you through the process of a programmatic ad buy, the ad-tech companies involved, and the benefits for both advertisers and publishers. It will breakdown the ecosystem piece by piece in order to clearly explain what “programmatic” actually means.
The Ultimate Facebook Ads and Facebook Marketing Course. This course is a step-by-step guide to teach you how to make your first Facebook ad. Boost your Facebook marketing and Facebook advertising by learning how to create Facebook ads from scratch!