Today programmatic marketing is a part of any business strategy because it is a profitable and comfortable way of online advertising. It is based on the automation of processes connected with advert space purchasing. RTB networks are considered the most popular way of the application of such an approach.
What is programmatic?
Programmatic advertising is based on the application of special software, which is controlled by computerized algorithms. Thus, marketers can buy and sell advert inventory spending less time and money. Moreover, the whole trading activity becomes easier for both advertisers and publishers. Speaking about the productivity of such an approach, it opens more opportunities for targeting the desired audience and controlling the campaigns’ effectiveness. As a result, advert placement becomes more efficient and advantageous.
Such an approach might be fully or partially automated. There are two main directions of programmatic marketing:
- programmatic direct
- real-time bidding.
Programmatic direct is closer to the traditional way of ad buying. Marketers still need to negotiate on prices, audience, and other peculiarities of an advert campaign before the advert will be placed on a definite site. As soon as the conditions of a deal are agreed upon, the advert is automatically delivered to the publisher’s vacant space.
As for the RTB system, it requires minimal human involvement as a purchasing process is computerized. There is no need to negotiate on prices and other requirements. Publishers create an offer with their inventory, while advertisers can bid on it in real time. The highest bid is chosen by the system, so the competition is always fair.
RTB platforms such as Polus.media are complicated systems, which demand the involvement of several parties:
- DSP
- SSP
- advert networks and exchange.
DSP is a demand-side platform, which is organized for advertisers. It fulfills the following functions:
- adverts purchasing
- opening access to a wide range of publishers
- advanced targeting (there is an impressive number of features available including browsing behavior, location, interests, demographic features, online activity, etc.)
- selecting the most suitable impressions among a significant number of offers
- optimizing the advert campaigns.
SSP is a supply-side platform, which is used by publishers. It provides the following options for them:
- selling digital advert impressions
- connecting to a wide range of potential ad inventory consumers
- managing the advert space (including the selection of preferable advertisers)
- managing the profit. It is possible to sell advert space at a reasonable price even if we speak about the remnant inventory. There are options for adjusting the minimum costs in order to avoid the situations when the ad space is sold for nothing.
In fact, SSP is the same thing as DSP. The difference is that SSP is a version of a platform for publishers. Each of the platforms works on its own server.
Another part of the RTB system is an advert exchange. It is the third-party resource, which works as a mediator creating a platform for the cooperation of publishers and advertisers. Such platforms have access to multiple advert networks. The latest work with the definite sites/platforms, where the advert space is offered. Advert exchanges provide marketers with access to many advert networks. Thus, the opportunities for cooperation become better. Advertisers can easily find an appropriate location for their adverts, while publishers can sell their inventory at higher prices and make sure the materials displayed on their resources are appropriate for their users.
How do SSP and DSP work together?
DSP and SSP are connected with each other. When advertisers select certain features connected with targeting and other settings for the advert campaigns, this information appears on a DSP. The latest is linked to SSP, so advertisers are offered various options to target their audience and buy the ad space at the best price. A suitable piece of inventory is found by SSP and, if it meets the requirements, the exchange is finally organized via an advert exchange. As soon as an exchange happens, the advert is purchased and delivered to a certain site, social network or other platforms automatically.
Consider the benefits of RTB system and the SSP/DSP application:
- advanced control (publishers can easily control their inventory because the deals are made on the basis on an individual advert impression. So, it is possible to optimize the advert requests)
- more effective targeting (the system allows finding exactly your segments of people narrowing a target audience and providing marketers with the reliable and relevant information concerning the visitors of a certain site. The platform guarantees better reach and capture of the audience)
- advert quality (using ad exchanges, especially private ones, publishers can be sure that the materials correspond to the requirements and there are no unwanted ads).