Programmatic Advertising

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Created by
Ashley Frank

Cards (16)

  • Programmatic advertising platforms provide a real-time marketplace for buying and selling ad space.
  • Programmatic ad buying analyzes a user's behavior to produce real-time results.
  • Programmatic Advertising Process is divided:
    Demand Side Platforms (DSP)
    Supply Side Platforms (SSP)
    Ad Exchanges (AE)
    Data Management Platforms (DM)
  • Programmatic Advertising works as follows:
    1. User visits website
    2. Website communicates with AE/SSP
    3. SSP offers user information to DSP
    4. Advertisers place bids through DSP
    5. Highest bid wins the ad
  • The pros of programmatic advertising are:
    • Better pricing
    • Improved ad metrics
    • Scalability
    • Ad Fraud
    • Viewability
    • Brand safety
  • DSP make it easy to buy ads and find the target audience. An example is Google ads.
  • SSP creates reports on user behaviour. An example is Google ad manager.
  • Programmatic Advertising cons:
    Ad fraud
    Ad viewability
    Lack of transparency and control
    Data Privacy
  • Ad fraud is a pro because you can use reputable websites that have anti-fraud measures. It is a con because scammers can use bots to create false impressions and waste the ad budget.
  • Ad viewability is a pro because the DSP will place the ad in several spots on several websites that have high traffic. It is a con because of the growing use of ad blockers.
  • Native ads match the look and feel of the website they are on, so they are less noticeable. Using native ads can improve viewability.
  • Data privacy is a con as websites can track your movement across the internet using third party cookies.
  • Types of programmatic ads:
    • Real time bidding (RTB)
    • Private marketplace (PMP)
    • Programmatic direct
  • In RTB, buyers place bids in real time similar to an auction. The ad space is then sold to the highest bid. This is automatic due to the AI software.
  • In PMP, buyers and sellers agree on a price for ad space ahead of time using programmatic direct deals.
  • Programmatic direct ads are one to one agreements. The sellers will work only with one client, so that no other competing ads can appear on the website.