Programmatic Advertising

Programmatic Advertising was first introduced as a 468x60 banner ad in the 1990s. Programmatic Advertising evolved with its current AI-driven approach helping brands to draw the audience and understand their behavior with personalized digital advertising. Brands can optimize paid campaigns using data that customizes ads for your marketing objectives.

Introduction

Programmatic Advertising makes transactions effective and time-saving. It streamlines the campaign process and stabilizes all digital advertising performance into one technology platform. Programmatic Advertising is needed for brands to achieve scalable results such as awareness, engagement, and conversions. Noboru engages your digital advertising efforts by helping you to achieve the measurable outcomes through Programmatic Advertising.

PROCESS

  • Research/Brand Awareness: Noboru will grab every bit of information regarding the target audience, competitors in the market and product relevance of your brand with the users.
  • Prospect Engagement: Noboru targets suitable prospects of your brand through relevant searches. Using potential data on platforms such as The TradeDesk, Google DV360, AppNexus, Amobee, Simplifi have multiple tools to measure the performance metrics.
  • Performance Measures: Noboru aligns the data specific attributes in the creatives and banners from the above data analytics tools and measures the performance with a situation-specific approach such as climate, geolocation, user intent, user interests, etc.
  • Optimize: The ultra-modern programmatic tools and its expertise at Noboru makes it transparent for us to understand the gaps in the content and data segregation, therefore, building upon the resemblance of the audience.
  • Re-targeting: Through conversion metrics, Noboru engages your existing audience for the future purchase of your products in the expansion line.
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Why programmatic advertisement is important?

  • Programmatic Advertising allows digital marketers to reach to an extended target audience through it's ability to re-target customers.
  • it gives you a real-time measurement of data and sends automated reports of the brand's campaign performance.
  • Programmatic Advertising gives your brand the control and transparency in terms of audience reach, cost of ads and website reach.

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FAQ's

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 PlatformCustomer 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 audiencesUsing 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.

  • Value
  • Communication
  • Data-Driven approach

Value

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.

Communication

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.

Data-Driven Approach

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

  • Retargeting
  • Data-Driven Media Buying
  • Analytics

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. 

What does programmatic mean in advertising?

The terms Programmatic in Programmatic Advertising defines ad impression buying and selling using the software. Programmatic Advertising has reduced a lot of manual tasks happening in traditional advertising. Also, the buying of every ad impressions are made with a robust decision-making algorithm that creates a data-driven decision.

How does programmatic ad buying work?

Programmatic Advertising ad serving process is the same as how it happens in an Ad Network, but the difference comes in how the decision is made to buy the inventory. Programmatic Advertising uses a data-driven approach, and key players are

Supply Side Platform (SSP): They helps the website to get high CPM and fill rate

Demand Side Platform (DSP): Its an Advertiser platform which helps deliver the ad to the right user at the right time

Ad Exchange: It’s similar to the stock exchange instead of people and shares; they deal between Publisher and Advertiser to buy and sell inventory.

  • It starts with a user visiting a website, and A bid request through SSP reaches the Ad exchange platform.
  • Bid request contains the behavioral, Demographics, Geography information, etc.,
  • Ad Exchange conducts an Auction in Real-time Bidding model. They pass all the information on the DSP.
  • DSP would cross-check the user cookie information that is matching in their user table or DMP audience list. 
  • Advertisers send Bid responses with the creative location after finding the user formation and their relevance to the advertiser.
  • Ad Exchange collects all the Bid responses and sorts them from highest to lowest. Then they select the advertiser with the highest bid price.
  • Ad Exchange selects bid responses directed to the Website through SSP, and the Ad gets served to the user. 

The entire complex process is completed around 100 milliseconds, which is the beauty of Programmatic Advertising.

Is programmatic advertising effective?

Programmatic media buying has both pros and cons, but the data-driven advertising approach helps the advertiser to bring brand awareness, an increase in traffic, and ROI. Similarly, they also help the publisher to monetize their inventory with a high fill rate and high CPM revenue. 

What is programmatic advertising?

Programmatic Advertising is an automated way of inventory buying and selling. They use powerful AI & ML algorithms to decide whether to buy inventory accompanied with the data or not. The open auction method is the most used programmatic media-buying method, which is similar to the auction, which happens in real life. An advertiser will bid and the competitive amount for displaying his ad to the relevant user. Programmatic information of each served impression is tracked in the platform so that a marketer can analyze the data of consumer behavior like the site most people visit, performing creatives, CPM cost of serving the ad, so they can build an effective strategy to increase their ROI.

What are DSP and SSP?

A Demand Side Platform is an advertiser platform that uses a powerful AI & ML based algorithm, to check the relevancy of each user to the ad and decides to buy the inventory or not. Some of the critical benefits of DSP are:

  • Greater control over the inventory 
  • Demand Side platform also provides high data transparency about each ad impression
  • Based on insight, advertisers can optimize spending towards their goal.
  • Sophisticated targeting options available

A Supply Side Platform is an Ad-Tech platform used by the publishers to optimize their ad inventory in real-time. Some of the key benefits are

  • Increase in fill rate
  • Competitive price for the inventory
  • Helps to maintain Publisher Brand Safety by blocking bad ads
  • SSP works with DSP to keep in control the limit of a similar ad impression to the users

Any case study about the uplift of performance through Programmatic Advertising?

Yes, there is a no.of case study you can find from the platforms and marketers. Here I will discuss one of the case studies of performance uplift using Programmatic Advertising. Unilever wanted to increase the sales of its Magnum ice cream in Turkey, so they worked with Mindshare and The Trade Desk platform. They used the power of audience targeting and lookalike targeting models with a tailor-made message for each audience like the white-collar workers, Mothers, and sun-seekers. When a message is delivered to the relevant people, the engagement will be high, which is like the song you listen to based on your mood. This campaign outperformed the CPA goal by 429%. They also collected the people’s choice of ice cream through a survey that they can use in future campaigns.

How to mitigate ad fraud happening in Programmatic Advertising?

Ad fraud has existed since the digital marketing era started. Today, the fraudster is making billions of dollars from the advertiser pocket every year. Ad fraud is made by the middlemen in the supply chain, which uses sophisticated tools and techniques to do Ad fraud.

Some of the Common Ad fraud techniques are BOTs, spiders, domain spoofing, pixel stuffing or invisible ads, arbitrage, etc., To mitigate it as marketers or advertisers need to do the following things.

  • First, Know where your Ad is serving and how much impressions are served to the sites/app.
  • If the delivery to the website/app is abnormal, make a deep dive into it and analyze what caused it.
  • Use Prebid wrapping to evaluate each bid request and serve the ad only if they are valid users. The prebid analysis will affect the pacing of the campaign if the inventory targeted contains more invalid traffic.
  • Regular monitoring of the data and blocking the IP Address, device, exchange, or the website which are pretending as humans.

The non-human traffic or Ad fraud can’t be 0% for a campaign, but the marketer needs to maintain less than 3% of NHT.

What does Deal ID mean?

Deal ID, or deal identifier, is the unique number of an automated ad buy. The private marketplace is more accessible to inventory with a bidding mechanism, letting a limited number of brands/advertisers enter the market competing for the inventory. While deal ID, in understandable explanation, is a unique contract number for each of the deals made between advertiser/brand/agency and publishers. It is a parameter attached to the ad impression request. Since, both the publisher and advertiser pre-negotiate the specifics of the campaigns, it means better revenue for publishers and higher ROI for advertisers.

List out the deal types used in Programmatic Advertising?

There is an assumption about Programmatic Advertising that real-time bidding is the only media buying and selling method, but it’s not true. They are one of the media buying and selling protocols of Programmatic Advertising. Marketers buy the inventory broadly with two methods from the supplier in the programmatic ecosystem:

  1. Auction
  2. Guaranteed Deals
Auction

In the Auction model, the marketer buys the inventory by bidding competitive pricing compared to the competitor. The supply-side platform passes bid requests to the ad exchanges. The ad exchanges collect the interested demand source bid response, select the highest bidder, and sell the ad inventory to that demand source. We have three types of auction models in programmatic advertising, which have been chosen based on the requirements.

Open Auction: The commonly used auction type, it’s also called OpenRTB. As the name suggests, bids are collected from space where all the interested advertisers can bid.

Private Auction

A Private Auction is similar to an open auction, but only the invited demand partners can participate in the bidding on the ad inventory. If the Ad space is not sold in it, then the Ad space places their bid on open auction.

Preferred Deal: A fixed CPM deal is made between Publisher and Advertiser if the advertiser is not displaying the ad, then the inventory goes to open market

Guaranteed Deal

As the name suggests, the inventory is sold in ‘guarantee’ as per the contract made. Guaranteed deals are the agreement made between the publisher and advertiser on honoring the impression goal and its price.

What pieces of information are collected through 3rd party pixels?

Third-party cookies are generally placed to do cookie syncing, match and stitch identities across the website with the domain of Data Management Platform (DMP) and Customer Data Platform (CDP) as well as of ad exchange. Third-party cookies primarily collect marketing-relevant information such as age, origin, gender, and user behavior data. Through this collection, there are powerful online marketing tools, especially for personalized advertising.

What are the mistakes most of the marketers or advertisers doing while running Programmatic Advertising?

Marketers or advertisers make inevitable mistakes that affect ROI. Some of the common mistakes are:

Lack of market research: Advertisers should research the targeted market and how their competitors are performing, including the scope of the product or service. Else, there will be massive media spend made without any returns.

Goal: The goal of marketing needs to be defined by analyzing the scope of the targeted market.

Message: If the message in an ad is just a gimmick, and the site doesn’t have the message or any offer, then the user won’t come back to the site as the trust factor affects the user.

What is an Ad Exchange and How it differs from Ad Network?

Ad networks aggregate inventory from publishers and filter or segment them based on different targeting options, and then sell it to advertisers. Ad exchanges are digital marketplaces where publishers, ad networks, advertisers, and others buy and sell the inventory through one of the auction types (RTB, preferred deal, or private auction) to the highest bidder.

What is Omnichannel Advertising?

Omnichannel Advertising is a phase shift from channel-based advertising to customer-centric advertising. Channel-based advertising (social media, search, display, video, etc.) celebrated at some point in time, the current Ad-Tech made the users interact across the traditional channels. Advertisers adapting to the omnichannel approach were able to reach the targeted user across the channel, for example, by showing a video ad on a mobile user’s social media feed. This is a customer-centric approach that is more effective in bringing attention and also driving engagement.

What is programmatic video advertising?

Video ads are better storytellers than text or banner ads since information through moving images is stored in the human mind better than banner or text ads. So the marketers run programmatic video ads, which use the combination of creativity and data to reach out to the niche audience. Using the data and real-time targeting, we can show the video ads to the user to drive engagement, and statistics suggest that the sale conversion rate is 35% for video ads. 

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.

When can I expect the results for Programmatic campaign?

Programmatic campaign are data-led campaigns which take time to analyze and implement. The campaign will start showing fruitful results after 2 months.

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