What is programmatic advertising?

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Programmatic advertising
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• Decision-making process of media buying can
  be automated by targeting the specific audiences
  and demographics.
• Programmatic ads are placed using artificial
  intelligence and real-time bidding for mobile,
  online display, social media advertising and
  online video campaigns.
• It can further expand to TV advertising
  marketplaces.
• As programmatic evolves into digital out of
  the home, audio, and TV, it is more important to
  understand the basics in order to devise an
  optimized strategy.

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• Programmatic started off as a way of using up
  the remnant inventory.
• Usually, there will be a misunderstanding
  that all the programmatic are real-time
  advertising but its a way of utilizing the
  programmatic techniques to make the instant
  purchases.
• And moreover, real-time advertising is an
  auction-based model whereas the programmatic is
  the full breadth of automation.
• Agencies or brand uses a demand-side platform
  to decide which impressions to buy and how much
  need to pay for them where the publishers use a
  supply-side platform to sell the ad space to
  brands. These mentioned platforms are matched up
  in real time.

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• One of the very important aspects of
  programmatic advertising is guaranteed
  impressions.
• Before the impression goes live on the
  website, the price is actually pre-agreed by the
  seller and buyer.
• If the brand needs to amplify the message or
  we can reach to a different audience beyond the
  continuous campaign where the marketers can bid
  for real-time impressions.
• Programmatic is where we can buy the digital
  advertising space automatically by using the
  computer data.
• This will decide which ads to buy and how
  much we can pay for them.
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• The communication between the buyers and
  sellers has a vocabulary of its own and sometimes
  it is like learning a new language.
• The system is buyers on one side of an
  equation, the sellers on the other side and the
  brokers in the middle.
• Most of the time programmatic looks
  jargon-heavy and surrounded in complexity.
• The traditional way of buying the digital ad
  space involves with the publisher who runs a
  campaign, while programmatic puts the way to
  control, measure and manage back in the hands of
  an advertiser.
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• Programmatic boils down to the use of
  technology and data by enabling the marketers to
  make the decision in real time about the
  advertisement they want to deliver to the
  consumer.
• We generally think that what audience we are
  trying to reach, at what scale, on what kind of
  day and on what devices.
• We think like what we know about them
  demographically and behaviourally based on the
  individuals internet consumption habits over
  time.
• Programmatic has enabled the marketers to
  move from one straightforward media buy with the
  publisher to conduct media transactions on an
  impression by impression basis.
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How to use the data for programmatic? By
understanding the behavioural insights which can
be drawn from data is the first step to achieve
an efficient programmatic strategy.   There are
three tiers of data to consider,   First party
data   It is the advertisers own data about
their customers   Second-party data   It has
been collected by someone other than the
advertiser such as an agency who shares the data
with the brand to help structure the programmatic
strategy.   Third party data   It is a kind of
data which is available to anyone at a cost and
this is actually sold on a rate card basis.
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• Brands need to think about the potential
  customers.
• When we send the upgrades or new product
  offers to the existing customers via messages, it
  is known as retargeting.
• In order to grow beyond that point, brands
  need to use the data to find the new prospects,
  looking for the similar audience to the existing
  customer base.
• We look at the data and see how existing
  customers are behaving on the internet and then
  we look for the people exhibiting the similar
  behaviours who could feasibly be a customer in
  the future.
• When we analyze the similar behaviours, we
  can able to target the advertising for different
  levels of scale and accuracy.
• If we need to do a scale campaign we might
  need to dilute the accuracy or if it is a
  targeted campaign, we can maximize the accuracy.

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