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27 March 2017 / News

Understanding programmatic display advertising

Chris Pittham / Director

Programmatic Display can be a bit of a mystery. Managing Director Chris Pittham has created a simple guide with some basic concepts explained.

What is programmatic display advertising?

At its simplest, programmatic advertising allows you to reach the right person, with the right ad, at the right time, and on the right device.

By using algorithms and automated software you can buy and sell advertising space in real time.

This means that individuals can be targeted with personalised, relevant and timely content in a variety of forms, across several channels.

Unlike normal display, the exciting thing about programmatic is that the targeting allows for custom audiences to be created and bid upon based on specific demographics and customer journeys across the digital universe.

Why do I need programmatic advertising?

Traditionally digital ad buying was done directly with the publisher so was extremely expensive, plus it was based on the content on the publisher’s site, meaning it was unreliable and sometimes involved a lot of wastage due to targeting all users.

"The exciting thing about programmatic is that the targeting allows for custom audiences to be created."

Programmatic advertising technology aims to make the ad buying system more efficient, and therefore cheaper. The targeting effectively allows advertisers to pay for a specific audience based on many variables than just the content they are viewing, rather than impressions served with the hope of reaching the right people.

What is the difference between programmatic direct and real-time bidding?

There are two types of programmatic buying: programmatic direct and programmatic real-time bidding (RTB).

RTB refers to the purchase of ads through real-time auctions, whereas programmatic direct uses automated software, allowing advertisers to buy guaranteed ad impressions in advance from specific publisher sites and doesn’t involve an auction.

How does programmatic advertising work?

Advertisers often use Demand Side Platforms (DSPs) which are complex pieces of software that are fully automated and help them decide which ad impressions to purchase.
The software has access to the inventory of advertising placements and allows bids to be set for various target demographics.

Want to know more? Get in touch to find out how Programmatic Display can supercharge your marketing.

Biddable Media, Display, How to guides, Programmatic, Tech