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Programmatic Advertising For Dummies

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Clueless about programmatic advertising? We've got you covered. Learn about how programmatic ad buying works in the most simplest form possible.

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Programmatic Advertising For Dummies

  1. 1. PROGRAMMATIC ADVERTISING FOR DUMMIES
  2. 2. WHAT IS PROGRAMMATIC BUYING?
  3. 3. WHAT IS PROGRAMMATIC BUYING? Simply put, programmatic ad buying is the buying and selling of ads through machines. Programmatic ad buying is similar to online stock trading in that an advertiser uses software to buy ad impressions. All of the magic happens through machines.
  4. 4. NOT THESE TYPES OF MACHINES
  5. 5. WHY DOES PROGRAMMATIC ADVERTISING MATTER?
  6. 6. WHY DOES PROGRAMMATIC ADVERTISING MATTER? Then Now Digital advertising used to be bought and sold manually. Ad networks bought ad impressions ahead of time from a lot of different sites and apps and repackaged them to be sold to advertisers with no transparency. This process involved salespeople, RFPs, and a whole bunch of human error. The process was inefficient and unreliable. With programmatic advertising, digital ad buying is faster, more efficient, and less expensive. Also, advertisers now have more granularity into their advertising campaigns by paying for impressions individually and using a dashboard to strategically manage and target their ad campaigns.
  7. 7. HOW PROGRAMMATIC ADVERTISING WORKS
  8. 8. Programmatic ad buying typically happens through real-time bidding (RTB). Real-time bidding is a live auction that happens through an advertising exchange. Just like a real auction, demand-side platforms bid on ad impressions on advertisers’ behalf. Whoever has the highest bid price, gets their ad shown to an end user.
  9. 9. EXAMPLE USING WORDS WITH FRIENDS
  10. 10. The publisher, in this case Words With Friends, has already given its ad inventory to ad exchanges, which are responsible for having an auction. BELOVED AD EXCHANGE
  11. 11. During the auction, potential bidders (the advertisers) receive information in the form of a bid request about the user who has just opened Words With Friends. The information may be something like device type, IP address, operating system, and information about the app itself. Device: Samsung Galaxy S5 IP Address: 99.999.999.70 Operating System: Android
  12. 12. Advertisers look at the bid request from Words With Friends and then send their bid price back.
  13. 13. After receiving all of the bids, the ad exchange determines who the highest bidder is for the impression on Words With Friends, and the winner’s ad is served on Words With Friends. Good-Looking Shoes
  14. 14. Publisher Advertisers Consumer Remember, all of this happens within a tenth of a second!
  15. 15. IS PROGRAMMATIC THE FUTURE?
  16. 16. IS PROGRAMMATIC THE FUTURE? YES The programmatic buying and selling of advertising is rising rapdily. However, mostly online and mobile ads are bought and sold programmaticly. U.S. REAL-TIME BIDDING (RTB) DIGITAL DISPLAY AD SPENDING, 2010 - 2016 Source: eMarketer, Nov. 2012
  17. 17. Interested in mobile advertising for your business and want to see programmatic ad buying in action? Check us out at decisive.is.

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