What is Programmatic?

What is Programmatic Advertising?

Programmatic advertising “is a system that automates the processes and transactions involved with purchasing and dynamically placing ads on websites or apps.” It manages the entire automated bidding process and ad placement between an agency Demand Side Platform (DSP) and a publisher’s Supply Side Platform (SSP) within 200 milliseconds.

To better explain the complexities of programmatic advertising, let’s look at an example.

Here is how the process works

A consumer goes onto a publisher’s website. The publisher looks for data based on that person’s browsing history and interests (from its Data Management Platform). It checks with its ad server for any relevant advert that it could serve. If they don’t have one, the server requests one from ad networks and SSPs. If there is still no relevant ad it then goes to private networks and an Open Ad Exchange. The ad exchange goes to bidders and agencies or DSPs to once again search for any relevant advert to serve based on the consumer’s data. The ad exchange takes the advert from the bidder closely aligned and serves the ad to the consumer on the publishers’ site. This all takes place automatically and within 200 milliseconds.

How do you benefit from an agency running programmatic advertising?

Programmatic advertising statistics show that in 2020 among the top trends were automation, machine learning and AI. It is expected that by 2021 digital ad spend will increase by 88% in the US. (eMarketer, 2019 and Setupad, 2020)

Using agencies who own DSPs, like Adclick Africa, means you benefit from reaching a wider audience at a reduced rate. The most popular ad formats are high-impact rich media ad units that enhance campaign effectiveness. Here are some of the Adclick Mobile DSP features:

  • Advanced targeting
  • Real-time report
  • Premium African inventory
  • Advanced audience segmentation
  • On-the-fly optimisation
  • Easy integration

The benefits of running programmatic advertising via the Mobile DSP include competitive pricing models and lower traffic costs that accrue from real-time bidding.

Now that you understand the process of this open ecosystem, let’s take a further look at the kinds of programmatic advertising channels available. 

Programmatic advertising channels

Here are six of the typical channels of programmatic advertising:

  1. Display – These are banner ads that appear at the header, footer, or sidebar on a publishers’ website.
  2. Video – Video ads that appear in-stream typically on YouTube. Or out-stream ads that pop up in a separate window or in-between the text of relevant online articles on a publishers’ site.
  3. Social Ads – Typically appear in social media feeds, but can also reach as far as using your influencers marketing campaigns.
  4. Audio Ads – Ads placed in the form of podcasts, digital radio and music-streaming services.
  5. Native – These ads appear in places other than the header, footer or sidebar on a publishers’ website. According to research by IPG & Sharethrough on native ads, consumers looked at native ads 53% more often than display ads.
  6. InApp ads – Use in-app ads in the form of simple ad banners, pop-ups or even in-app rewards, such as watching a video or answering a question.
  7. Digital-Out-of-Home (DOOH) – Outdoor advertising that advertises to the audience in public spaces but in a digital format. Eg. Digital billboards. Click here to learn how it works and the benefits for your company.

How the targeting works

Programmatic advertising enables you to reach a far wider audience and still adopt a targeted approach. It allows you to target your audience in the following ways:

Device: Targeting specific devices such as Samsung, iPhone, Windows Phone etc.

Location: You can either target by Country> State> City, using GPS coordinates or Geo-mapping.

Profiling: You can target your programmatic advertising using categorical, contextual and interest-based targeting across APPs and mobile sites. You can take it a step further by delving into the age group, gender and keyword optimisation.

OS: Targeting based on the devices operating system (IOS, Android, Windows OS)

Carrier: Targeting through Wi-Fi or carrier-based users.

Along with the targeting options, you can also choose a time, or day, when you want your ads to be displayed. Plus, you can carefully track each conversion, category and value of them too.

A cost-effective way to increase your reach and ROI

Programmatic advertising is a great way to run effective campaigns and get a higher ROI as you don’t spend money on people who glance at it. It works on a CPM (price per 1000 ad impressions that appear on a website) or Cost-per-Click (CPC) models.

Companies with a larger budget to spend on digital advertising should incorporate a mix of paid media approaches to their digital strategy. And one of those formats should include programmatic advertising.

Contact Adclick Africa and our experienced team of professionals will map out your approach and run high-performance campaigns, giving you the ROI you need.