Having occupied a strong position on the advertising market and reaching a third of its volume, online advertising is the main medium of advertising. The rapid increase of internet users amounts led to the evolution of online advertising technologies, new tools to improve the purchase of advertising in media space. That’s how, Programmatic Buying technology appeared in 2012.
PROGRAMMATIC - WHAT IS IT?
In fact, it is an algorithmic purchase of advertising in real-time (Real-Time Bidding, RTB) with extensive opportunities for users’ targeting. These two concepts – RTB and Programmatic – seem to be interchangeable, but there is a significant difference between them. RTB – one of the auction inventory purchase methods with the possibility of regulation of the purchase price (rate) and network coverage. Meanwhile Programmatic combines these indicators with the data on users’ behavior on the Internet and shows advertisement only to interested users.
WHAT ARE THE ADVANTAGES OF PROGRAMMATIC BUYING?
In the first place, the use of third-party data provides the ability to automatically adjust impressions to specific users. Targeting settings can be configured based on information about the age, sex, previously visited websites and similar goods purchased by the customer. Moreover, targeting can be set up to similar users, who are most likely to be interested in your brand or product, on the basis of existing consumers’ data. In addition, a retargeting from client`s site will create a pool of skilled users who have previously visited the site. Thus, Programmatic Buying is a powerful tool that automates all processes previously caused only problems for advertisers. There are two ways of purchasing installations. Many agencies involve technical partners who have access to advertising exchanges (Ad Exchanges), while others chose the path to develop their own advertising platform (Trading Desk), allowing them to be independent.
IS PROGRAMMATIC AHEAD OF THE FUTURE?
Programmatic already holds a dominant part of leading advertisers’ budget aimed to display the advert. However, this technology still has many ways to develop, grow and improve. Advertisers’ budgets within the display advertising will grow at a crazy pace, but it will happen mainly due to the growth in Mobile Programmatic costs.