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Learning the Basics of Programmatic Advertising to Make the Most of it

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In recent years, programmatic advertising generated considerable hype in the advertising and marketing space. It is the new and automated way of delivering advertisements. Programmatic advertising can be a bit confusing to understand, but don’t worry because here is what all yOu need to know about programmatic advertising and how you can make the most of it if you plan to use it.

What is Programmatic Advertising?

Programmatic advertising is the use of machinery to access ad space instead of businesses using traditional methods, such as human negations, manual orders, and tenders. Programmatic advertisement helps you plan and optimize your advertisement accordingly. This way, you get the time to focus completely on the outline of the content instead of you worrying about preparing ad tags or insertion orders. However, you may receive a small number of ad buyers.

Main Types of Programmatic Advertising

Mentioned below are the following types of programmatic advertising and its features:

RTB is a sort of real time bidding operated automatically. This system involves making a transaction during the time a webpage takes to load. RTB is available only to visitors who are a part of your target audience, for instance the visitors that fall within your target demographic. A few elements in RTB are the main players involved in programmatic advertising:

  1. Supply-Side Platforms (SSPs) help you manage your display space, i.e. your ad space 
  2. Demand-Side Platforms (DSSPs) allows and helps you to buy ad placements automatically and guides you on how much to bid for each ad space individually.
  3. Ad Exchanges are the central source connected to the DSSPs and SSPs and they help you by facilitating the auction process. An ad exchange acts like a trading floor that helps you buy ad space from different ad networks.
  4. Ad Servers help you by placing the winning ad in the correlated page slot.

RTB is the process used by the advertiser when he/she uploads the advertisement onto the ad server. The DSP helps you target the advertisement to your target market and guides you regarding how much to bid for each impression. The bid goes through an auction held by the ad exchange and if the bid is successful, the advertisement goes through the SSP into the ad server and finally reaches the desired website.

In this type of Programmatic advertising, advertisers purchase inventory on a set amount and there is no auction process involved. Buyers and sellers know each other in this form of programmatic advertising.

How Does It Work?

The programmatic advertising process begins as soon as the user clicks on a website link. During this time, the visitor’s information reaches the ad exchange. If the information regarding the user matches the advertisers target market, the ad enters the auction. The advertiser who makes the highest bid wins and then you immediately receive payment for your ad.

If you want to up your advertisement game, it is advisable to use programming advertising, as it is the most efficient and cheapest way to deliver your ads. It is important that you go through this basic guide on programmatic advertising before you start using it. 

 


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