Why should as an Advertiser, I need to consider Programmatic Advertising?
In Programmatic Advertising, an advertiser can measure & scale the performance with the help of technology. They will also be able to decide whether to serve the ad to the user or not, based on the targeting relevancy like behavioral, demographic, geolocation, device, etc., with the power that data advertisers can generate personalized messages for each user, and they have control of their spending. These are some of the things that help to create advertiser brand awareness and drive engagement.
Programmatic video ads have grown with large formats so that even a site without a traditional video player can run video ads. The conventional ad format of video are:
- In-stream: Traditional video ads
- Out-Stream: SDK loads video player at the time of ad serving to the site
- In Banner: Within 300×250 dimension video ads can run
The growth in usage of video content applications like Youtube, Facebook, and Tik Tok has helped in the programmatic video ads growth parallelly.
What are the benefits of programmatic advertising?
Programmatic Advertising benefits are:
Improved efficiency: Marketers can measure the performance in real-time and Optimize based on the insight, and the changes can be made swiftly as the platforms have straightforward settings.
Real-time data and insights: All the major programmatic platforms have a real-time widget for campaign pacing and performance. If they have more granular data, they can pull from the platform for further analysis. The real-time insights help the Marketer and Advertiser how the campaign performs in the platform.
Flexibility: Programmatic platform has a wide range of flexibility like budget adjustment, optimize towards performing creative, Geo, day and time to the server, etc., based on how many impressions it served, click or CPA
Better targeting: Programmatic advertising uses extensive data and algorithms that allow advertisers to place targeted ads with high precision and accuracy. It will enable marketers and advertisers to target audiences based on factors such as audience geolocation, age, behavior, search terms, categories, site visits, or even IP addresses. It also allows them to retarget customers after the site visitors have visited the advertiser’s site, which has improved conversions.
Wider reach: Programmatic allows marketers and advertisers to reach out to a broader spectrum of target audiences across multiple platforms and multiple publisher websites at a lower cost when compared to traditional forms of display advertising.
Time for strategy development: It can be considered as an indirect advantage of using programmatic advertising. As programmatic eliminates the need for manual RFPs and long-drawn negotiations between advertisers and publishers due to automation, the buying and selling process becomes less time-consuming and streamlined. It, in turn, gives the marketing and sales teams more time to develop and test their strategies as well as sales programs for their most significant assets.
How do DMP and DSP work?
DMP and DSP work together to identify the user insights to find the relevant advertiser campaign to serve the ad. The following steps take place between them.
- A Marketer holds his audience data in the DSP’s they use, i.e., A DSP of Marketer contains a table of cookie IDs that would match Ad Exchange and the DMP audience data.
- When a DSP receives a bid request from the Ad Exchange, it needs to check the corresponding ID of users that can recognize the DMP.
- DMP will pass the cookie ID’s corresponding user Interest, behavioral information, etc., to DSP
- Finally, if the user is relevant to the advertiser based on their AI & ML algorithm will decide how much bid to place in a bid response.
Difference between DMP and CDP?
The critical difference between a Data Management Platform and Customer Data Platform is
|Data Management Platform||Customer Data Platform|
|In DMP, data collected from various 1st, 2nd, and 3rd party sources, normalized, taxonomy, and audience segment created.||In CDP, the data are collected from the advertiser’s sources only and grouped into a segment.|
|The Audience in DMP is an anonymous cookie ID.||In CDP it stores personal data like Name, Mail, location, etc.,|
|DMP helps to reach a wider audience and reach the lookalike audiences||Using the CDP audience, a marketer delivers a customized message for each user.|
Difference between traditional and digital advertising?
The difference between traditional and digital advertising is broadly classified into three categories.
- Data-Driven approach
Traditional Advertising spends on ad spots is only to increase their sales, wherein digital advertising a marketer can optimize the content based on the audience and targeted medium. It helps to increase the engagement of the audience.
Hence, the digital medium gives more value to the audience, which doesn’t happen with a traditional medium like Radio or TV.
In Traditional Advertising, the communication is in one-way, once the medium like TV or radio shows the ads it leaves over there. But in digital advertising, there are specific channels like email advertising and social media platform advertising where we can engage with ads and also share with friends. It helps to drive the performance.
In traditional advertising, they measure which Ads are being watched in the highest order. Still, the data can’t be taken as 100% concrete with the practical result since the measure is made of out only sample data of the specified percentage of users were in digital advertising the audience data of each user collected and segmented by the platform based on insights like interest, geo, demography, page visited, etc.. We can use it for retargeting them or building a customized message for each user. The data-driven advertising proven approach sales uplift and brand-awareness.
What is a DMP? How does it help Advertisers and Publishers?
A Data Management Platform is centralized data warehouse which collects the data from various 1st party, 2nd and 3rd party data sources and unifies them and create audience segment based on the insight obtained from the user cookie-like interest, demographic, geo, etc., later the audience segment can be used by both the advertiser and the publisher.
Benefits for Advertiser
- Data-Driven Media Buying
Benefits for Publisher
- Optimize website performance
- Increased Revenue
- Organized Data
What is the difference between Google Adwords and Google Display Network?
Google Ads, aka Google Adwords, is a platform that helps the advertiser to display the ads to the relevant users based on the appropriate keywords and Ad copy they create with a competitive bid amount. They have two types of inventory sources.
- Google Search Network
- Google Display Network
In Search Network Text ads, shopping ads will display on the Google Search Page and search partner sites where a Google Display Network has nothing to do with Google Search page; instead, they have millions of Websites and Apps integrated with their network. In GDN websites and Apps, Google Ads serve the Display and Video Ads.
Bluntly, Google ads are a platform that helps to serve them relevant advertisements to the user and helps to drive performance for the advertiser. where GDN is a Network of millions of websites and Apps with inventory to sell when a demand with reasonable price comes from Google Ads or any advertisers of Google Marketing Platforms
Is Facebook programmatic advertising?
Yes, Facebook does programmatic Advertising, and it’s called Facebook Ads Manager. How they differ from other Programmatic platforms if you have this question, the one-word answer will be they are self-reliant. They have around 2 Billion active users on average from both Facebook & Instagram, and all the data obtained from the users are first-party data, which means it’s more reliable and sturdy.
In Facebook Ads Manager, we can run two types of ads.
Facebook Ads: In Facebook Ads, marketers will do the Campaign setup from scratch based on the advertiser’s requirement and run the campaign the same as all other programmatic platforms.
Facebook Boost: Facebook also provides an option to boost a Facebook post to increase the engagement but selecting relevant audiences segment, Demographics, and Geofencing.
Facebook Advertising is cost-effective since even we can fix a budget of $1 per day and increase as per the performance growth.
Is Google Adwords programmatic?
Though Google Ads (formerly called Google Adwords) has the most of the targeting capabilities of a programmatic platform, it is not programmatic since they are limited to their search engine and partner site for displaying ads. Also, data-wise they use their data, but the programmatic platform uses the combinations of 1st, 2nd, and 3rd party data to evaluate each user before serving the relevant ads.
What is programmatic advertising for dummies?
Programmatic Advertising = “Right User, Right Time, Right Ad”.
Programmatic Advertising is an automated approach to ad space buying and selling. Before buying and selling each ad impression, several data points (behavioral, demographic, Geo, device, etc.) are analyzed and decide the relevant advertiser and relevant ad to show to the user. All the complex analysis of data is made and delivered to the user in less than 100 milliseconds.