How does programmatic advertising work?

It is high time to get used to the fact that Programmatic advertising demonstrates incredible market growth and enormous amounts of expenses over the past couple of years. That fact tells us that Programmatic is here to stay. So what is it and how it works?

PROGRAMMATIC AND RTB: WHAT IS THE DIFFERENCE?

RTB contains implement purchase technology only in real-time. The programmatic concept is much broader and is a collection of technologies, algorithmic processes, which includes not only RTB, but as well as private auctions and direct purchases.

MECHANICS OF PROGRAMMATIC

RTB contains implement purchase technology only in real time. Programmatic concept is much more broader and is a collection of technologies, algorithmic processes, which includes not only RTB, but as well private auctions and direct purchases.

MECHANICS OF PROGRAMMATIC

  • A user enters an inquiry
  • Programmatic connects to Ad Exchanges, Ad Networks, Banner or teaser networks, exchanges, where open RTB-auction gets activated. User information is transferred to SSP for instant analysis and identification based on several criteria: who he is, where he lives and works, where he came from and what he wants to do
  • Trading Desk puts current rates to select an advertiser-winner
  • Generation and searching for an advertiser, who set the highest rate, displaying an advertisement to a user in a few milliseconds after entering a query.

WHAT IS THE BASIC FUNCTION OF THIS PROGRAMMATIC?

  • Purchase and own big data (1st, 2nd, 3rd data party), that contains user information and enables you to target, that is required to display advertisements only for the target user
  • To bring target audience coverage to 100%
  • Integrate data in CRM-systems and call-tracking systems, forming one ecosystem
  • Improve conversion and synthetic indicators many times over
  • Optimize a customer funnel and LTV
  • Have the following indicators as an output: + 238% Brand Lift, + 199% LTV, and + 425% ROI
  • Have access to 3 000 000 sites around the world to display advertisements
  • Get only high quality traffic, avoiding fraud.

It is time to admit that Programmatic – is a real evolution in the advertising world. The mechanism of work guarantees transparency and implementation of key tasks. Will you still be afraid of this new technology or will just start to develop it and integrate it properly into your business process?