This post originally appeared on the Mobusi Blog written by Sarah Canning.
“That’s so weird! That Ad that appeared on my screen as if it was actually speaking to me!”
No, it’s not weird. It’s not by coincidence either. It’s science. It’s programmatic advertising and it’s one of the most useful advertising tools in the game. Robots are actually taking over and they are way more efficient than humans it seems.
But what is programmatic?
It’s automated bidding on advertising inventory in real time, showing an ad to a specific customer with specific content. It’s using software to purchase advertising space – machines doing what humans would previously do. It’s a way to target what types of audience you wish to show your advertising to. In short, its computers buying online ad space.
However, if only it were as easy as that. It takes a lot more planning and working out.
So how does it work?
Targetting. Targetting. Targetting. You’ve been looking at new shoes on the internet and miraculously, on the web page you’re looking at, an Ad appears showing shoes. These ads have been placed there to target you. By programmatic software.
Segments such as age, gender, social standing, geographic placement and many more are taken into account.
Don’t be alarmed, you’re not the only one who’s being targeted…complex algorithms are used to study behaviour, where you’ve visited, what your likes are etc. Ads are specifically shown to you so that you click, because it’s more likely to interest you and you’re more likely to click on the ad, which, let’s face it, is the ultimate goal.
You visit a website and you see advertisements. While waiting for the site to load, the system analyses its audience (which takes around 10 milliseconds) and gathers data to select the appropriate Ad format. Then, real-time bidding takes place among advertisers whose target audience corresponds to the particular visitor. The highest bid is chosen and the winning Ad is published on the site which is then shown to the user.
A more intricate step-by-step look at how the process is developed is this:
- A user visits a publisher’s webpage. A publisher sells an Ad space on this site to advertisers so they can publish their announcement, advertising their product to a user who is connected in real time. This way, the company is able to reach a public who really interests them and the user receives less invasive advertising.
- The browser opens a connection to the publisher’s server. The publisher has a built in Ad server which takes into consideration the following questions: What do I know about consumer? Which Ad is best suited to this person?
- The Ad server then connects and gives this information to the Supply Side Platform (SSP) which provides a more in-depth study of the user such as, have I seen this consumer before? What does my data provide?
- While the page is loading, programmatic contacts either the Ad Exchange, Ad Networks or other advertising exchange systems and sends off this information.
- The Ad Exchanges connect to Demand-Side Platforms (DSPs). They work together with Trading Desks. A Trading Desk is a media buyer and re-seller, an independent working unit part of a large media buying concern. They are used to purchase advertising in an automated fashion. Effectively, what they do is buy ad exchanges. DSPs are used by digital ad buyers to reach their target audiences and bid in automated auctions as efficiently as they can. DSPs are connected to many ad exchanges, which allow users to buy traffic from a whole host of websites. They use technology to automate and optimize the advertisement buying process in real-time. They integrate with ad exchanges, which serve as a marketplace for ad inventory.
- Buyers respond in basically 10 milliseconds through their DSP. The winning DSP passes instructions to the ad exchange so they can retrieve and create the ad content.
- The Ad Exchange passes the instructions to the SSP and the SSP sends requested instructions to the publisher Ad Server.
- The Ad Server responds to the web page connection telling the browser to go to the agency Ad server ad and then the Ad is loaded on the web page.
And all this in literally 200 miliseconds!
Programmatic is an extremely successful way of advertising and as such, we’ve placed a particular importance on our DSP and created our own. The use of DSPs are on the rise as they are able to do a multitude of things, including buying, serving and tracking ads in the one go. If you were to create a campaign with our DSP, you would be able to produce both mobile and desktop campaigns. Ads can be sent to any specific customer over a period of time or over a selected time frame. At mobusi, we offer an abundance of categories where you can advertise in and with our platform, we are able to target audiences around the world based on either co-ordinates or IPs.
DSP allows marketers to manage their bids for banners and pricing for data that they wish to use to target audiences. They make the process of buying ads much cheaper and much more efficient. By using DSPs, advertisers buy impressions from a whole host of publisher sites available on ad exchanges with DSPs automatically deciding which impressions it makes through real time bidding.
So, if you want to know more about our DSP or Programmatic in general, get in touch with our team for more details!
You can see more at the Mobusi site here.