Advertising technology, also known as ad tech, is an overarching term that describes the tools and software advertisers use to reach audiences. As buying and selling digital ads became more complex, adtech emerged to streamline the process. Common ad tech tools, such as demand-side platforms, are technologies that enable advertisers to buy impressions and select audiences across many publisher sites. It also allows brands to make the best use of their budget and help maximize their revenue. Ultimately, the adtech landscape allows advertisers to strategically plan and optimize their advertising campaigns.
Programmatic advertising is the use of Ad Tech (short for advertising technology) for media buying. Ad Tech operates by utilizing data and algorithms to serve ads to the right user, at the right time, for the right price. This implements an automated process to purchase digital ad inventory from across the web, mobile, apps, video, and social media. Programmatic advertising uses workflow automation and machine learning algorithms to deliver the most effective ads to audiences based on a variety of signals
Here are some key terms to which are required for your knowledge in order to properly understand the process. First, you can categorize programmatic media buying into 3 different categories:
- PMP (Private marketplace): Most commonly compared to open auctions with the exception of restrictions on who can participate. Typically only advertisers who received an invite have access to PMPs. However, publishers may also have a process in place which allows advertisers to easily apply for an invitation.
• PMP (Private marketplace): Most commonly compared to open auctions with the exception of restrictions on who can participate. Typically only advertisers who received an invite have access to PMPs. However, publishers may also have a process in place which allows advertisers to easily apply for an invitation.
• RTB (Real-time bidding): This is when inventory prices are set based upon the live auction. It’s an open auction that’s available to any advertiser or publisher. With a free format it’s considered to be the most cost effective way to buy media with a large audience.
• Direct: Publishers can also bypass the auctions and sell their inventory at a CPM (cost per mille) to one or multiple advertisers.
Usually ad inventory is bought via a real-time auction. Using programmatic channels allows the advertiser to target the right audience by purchasing per impression. Therefore guaranteeing speed and efficiency because the process is automated and not matched in the traditional way of media buying.
3 main components make up the programmatic ecosystem:
• DSP (demand side platform): Agencies and advertisers are enabled to buy ad inventory cross-platform via the DSP software.
• Ad exchange: This is how inventory is fed into the ad exchange from the supply side. The publisher, advertisers, agencies, and networks are connected to the ad exchange via the DSP allowing them to buy ad space.
• SSP (sell-side platform): Publishers are enabled to sell video, mobile, and display ad impressions automatically to buyers in real-time via an SSP. This includes ad exchanges and DSPs giving publishers greater control of their inventory and CPMs.
How can we help?
What does all this have to do with Waytogrow? It’s our field of expertise! Here at Waytogrow we utilize proprietary ad tech created by our very own IT department. Our software gives you access to over 25+ SSPs & DSPs whilst ensuring your ads are optimized to perform at the highest rate possible. Waytogrow’s award-winning easy-to-implement monetization solutions can be fully integrated with Amazon and Google giving the publishers power to grow their revenue and unlock their full earning potential!
So to sum everything up, programmatic advertising offers many benefits. Advertisers may achieve greater efficiency, more focused reach, transparency, and real-time measurement and optimization. Ultimately allowing the publisher’s site to generate the highest passive revenue possible.Contact us