Can small businesses make the most of Adtech?
Adtech (short for Advertising Technology) refers to software and tools that assist agencies and advertisers in targeting, delivering, and analysing their digital advertising campaigns. Adtech is intended for advertisers to make better use of their advertising budget.
Adtech delivers the right content to the right consumers at the right time, resulting in optimised spending. Instead of the traditional type of placement purchase of Ads, advertisers can publish their Ads using advanced data and technology. It also changes the way media is planned and executed. Adtech also reduces the dependency on agencies to handle digital spends. In this blog, we will touch upon Programmatic Advertising under the Adtech umbrella.
What is Programmatic?
The process of automatically buying and selling digital advertising space is known as Programmatic Advertising or Programmatic for short. We had to manually order, configure, and report on Ads before Programmatic. Programmatic advertising streamlines this process, making it more effective and efficient. Because programmatic platforms have built up their Ad inventory and database, any Ad format and online publisher can be accessed through this software.
What problem does Programmatic solve?
Before Programmatic Advertising, advertisers had difficulty accessing inventory. This means that 60% of the publisher’s Ad space remains unsold. Automation has made it much easier to understand and purchase inventory. Advertisers benefit from Programmatic Advertising in the following ways:
Instead of being limited to a few options, programmatic advertising allows advertisers to reach a large audience by purchasing Ad space from a vast available inventory.
Advertisers can use different targeting criteria and customise their Ads based on real-time impressions.
The function of targeting
Programmatic’s sophisticated targeting enables you to make optimal use of your advertiser’s budget. Target your audience based on demographics, interests, context and other relevant attributes. For example, Ad inventory on travel sites could attract advertisers of travel insurance.
Automation overall streamlines processes in the buying and publishing of Ads and invariable more relevant Ads are placed. Because of access to a large pool of publishers, advertisers can generate a better Return on Ad Spend (ROAS).
How does Programmatic advertising work?
Algorithms in artificial intelligence technology analyse visitor behaviour and enable real-time campaign optimization for audiences that are likely to convert. Programmatic platforms can collect and target this audience data more precisely – DSPs, SSPs, and DMPs are all used in programmatic media purchases.
DSP (Demand Side Platforms), simplify the process of purchasing inventory for marketers on the open market, allowing them to manage Ad inventories from multiple sources.
DMP (Data Management Platform) collects and analyses large amounts of cookie data to help marketers make better decisions about their target audience. On the publisher side, the SSP is used to manage unsold inventory.
SSP (Supply Side Platform) enables publishers to manage Ad impressions. It reports on attention data such as the length of time a visitor spends on a specific website or the number of pages displayed per visit. Finally, the SSP oversees selecting the winning bid and delivering the winning bid banner Ad to the publisher’s website.
Ad exchanges facilitate pools of Ad inventory that advertisers can buy from publishers by sending a command to Ad Servers on the bid winning impressions.
Recent advancements in Programmatic Advertising
Programmatic advertising continues to grow with the application of automated artificial intelligence (AI). AI can automate the Ad purchasing process allowing advertisers to target a more specific demographic. As Adtech becomes more complex, the demand for its automation will continue to grow. Not only is it easier to buy media, but AI can also make real-time adjustments.
Another advancement in programmatic advertising is the introduction of new technologies that offer self-service options. For example, programmatic software can significantly reduce operational costs and customer management time by providing a platform for end-to-end Ad campaign management. This gives advertisers, small and big more control and ease in setting up and managing Ad campaigns.
Header bidding is an automated auction technology that allows publishers to sell inventory to many Demasmartnd Side Platform (DSP) advertisers while receiving bids from multiple advertisers at the same time. Header bids allow publishers to receive bids from multiple advertisers at the same time. This is expected to be a bigger trend as it will ensure that advertisers get a reasonable offer base price for their inventory.
How is cost determined in Programmatic Advertising?
The cost of programmatic advertising is calculated using the CPM (Cost per Mille) model and can vary. CPM is an online advertising term that means the cost per 1,000 Ad impressions. If advertisers need more specific targeting, the cost will increase. The price depends on Industry type, Ad format, Placement, Frequency and Targeted Device.
Programmatic’s CPM is less expensive than traditional online and offline approaches. As a result, even small businesses with limited marketing budgets can incorporate programmatic advertising into their digital marketing strategy.
Popular Programmatic platforms
According to analysts, the programmatic advertising market is poised to grow to
$ 148.53 bn before 2024 at a CAGR of 21%. There has been an emergence of various players in this space in the recent years, some of the popular ones being –
SmartyAds provides a programmatic advertising platform to meet the needs of Marketers, Agencies, Publishers, and App developers. This full-stack programmatic platform includes a Demand-Side Platform (DSP), a Data Management Platform (DMP), a Supply-Side Platform (SSP), and an Ad Exchange.
Advertisers can use the platform to run display, in-app, video, and native advertising campaigns across desktop, TV, Tablet and mobile devices. Ad creation tools, robust analytics, and sophisticated targeting capabilities aid advertisers in inventory selection, Ad placement, and campaign management.
The header bidding solution from SmartyAds enables publishers to run pre-bid auctions to sell Ad inventory at a premium price. SmartyAds also provides a white-label solution, allowing brands to build their product on top of it.
Advertisers can use MediaMath’s omnichannel programmatic marketing platform to manage their campaigns across channels with ease.
The Data Management Platform (DMP) from MediaMath assists marketers by integrating data sets from first- and third-party sources, which can then be segmented before being activated. Advertisers can connect with their most valuable audience by using the MediaMath Audience feature.
This DSP predicts the optimal price for bids and manages the performance of advertising campaigns such as mobile, display, video, audio, native, and Digital Out of Home (DOOH) Ads. MediaMath is loaded with features under the modules of Campaign Management, Media Management, Creative Management, Targeting, and Identity Management.
PubMatic is powered by real-time insights that enable publishers to generate revenues by optimizing Ad inventory. The Platform helps marketers and agencies achieve a greater ROI for their spends ensuring maximum bang for one’s buck.
The media buyer console helps advertisers plan and manage programmatic campaigns across multiple Ad formats and channels. If an Ad fraud is discovered, PubMatic’s fraud-free programme will refund a credit amount. Advertisers can use the real-time analytics feature to optimise campaigns.
Pubmatic’s RTB (Real Time Bidding) allows publishers to maximise their revenue per impression. The Ad quality feature prevents security violations and protects the end-user experience. It scans for malware, pop-ups, and audio-video quality violations.
The Google Ad Manager delivers immersive Ad experiences across devices for advertisers. Ads can be positioned to match a website’s look and feel. The platform allows publishers to sell Ads the way they want, and helps them to manage Ad revenue through direct deals from buyers. There are options of innovative Ad formats such as out-stream videos, rewarded Ads, and more.
Xandr is a data-enabled platform that functions as a marketplace for advertising. Xandr offers access to a premium global supply of Ad inventory across channels.
The Trade Desk enables modern marketers to plan, execute, and measure campaigns. With this platform, marketers can harness data to grow audiences.
Does Programmatic work for SMBs?
Yes, they can, here are five reasons why –
Time saved is cost saved
Programmatic advertising reduces the need for human interaction and, as a result, the time required for advertisers to manage Ad placement. The system bids on the appropriate impression and places the Ad in the appropriate inventory.
Connecting with international publishers
Programmatic benefits SMBs that sell their goods and services internationally because it ensures global reach across multiple Ad networks and programmatically connected publishers.
Targeting the right audience
Competing for user attention is much easier when the offer is relevant. Small businesses can use programmatic to reach audiences all over the world or display Ads only to people who live nearby (by applying geo-targeting).
Rapid shifts in campaign strategy
Programmatic campaigns can be continuously monitored, changed, and adjusted at any time. Real-time campaign analytics will help small businesses determine whether their campaigns are performing well.
Spending less money on advertising
With targeting (based on geo, age, OS, language, etc.), Ads are only shown to the relevant audience, increasing the chances of conversion. Furthermore, demand-side platforms are self-service, so campaign management is free of charge.
All it takes is a bit of education and practice, and you’re good to go!