Mobile Programmatic Advertising Simplifies the Mathematics Behind the Complexity of Advertising on the Web. Useful Insights for Marketers to Grasp Mobile Programmatic Advertising Concepts

Mobile Programmatic advertising was first initiated in the year 1994. Its potential and application are vast for the marketing community. Programmatic advertising further simplifies and optimizes targeted advertising. It also nullifies the role of human beings in ad-trade wherever possible. Before programmatic advertising, ad-buyers and sellers traded ad-space manually.

Till 2019, 85% of mobile ads in the US will be programmatic.

There will more than five billion mobile phone users by 2019, globally.

Hence, targeted advertising for mobile phone users should be a core part of the marketing strategy. Marketing enthusiasts looking to take a sneak peek at this technology should find this writing interesting.

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Programmatic ad buying in a nutshell

Programmatic ad buying essentially means when software is used to buy advertisements. This advanced software ensures that customer data is used at scale while buying ads. The selection of rich customer data ensures precise product placement. The software program also drastically reduces the need to swarm for a campaign, saving marketing budgets.

Marketers can leverage this capability by streamlining their role in the process of manual advertising purchase through RFI’s, negotiations etc. This saves marketers a lot of time and ambiguity about choosing ad space. The second advantage that marketers have is that they can then indulge in more creative endeavors regarding their marketing campaign design.

Will machines replace marketers in the near future?

Highly unlikely! Marketers will eventually phase out of tasks traditionally performed by them. These would be tasks like collaborating with ad publishers and dealing with advertisement tags. On the bright side, this does allow marketing teams to explore the software on a deeper level.

First-hand information is recommended to learn the tricks of the trade in order to better marketing campaigns.

Also Read: Five Key Trends for Programmatic Advertising in 2018

How does Mobile Programmatic Advertising work?

Programmatic Advertising’s growth and development as an entire ecosystem have been fairly fast. Discussing here are key components that map Programmatic Advertising.

Demand-Side Platform (DSP)

A platform owned by willing advertisers, Demand Side Platform will scan through a large chunk of consumer data to find the optimum set of consumers. This platform is connected with Supply Side Platforms (SSP) and Ad and Data Exchanges to make the maximum impact out of the campaign.

Supply Side Platform (SSP)

A supply-side platform or sell-side platform (SSP) provides DSP’s with the necessary inventory so that they can publish their targeted advertisements and meet their advertising goals.

Ad Exchange

An ad exchange is a digital form of the marketplace that equips both advertisers and publishers to trade ad space.

These components essentially define how programmatic advertisements are sold.

Programmatic Buying Types

Open Auction

Publishers post their inventory on an ad exchange that acts as an interface to an advertiser. Using DSP’s advertisers place a bid for the inventory space. The winning bidders get the advertisement published.

Open Auction is also sometimes referred to as a Real Time Bidding (RTB) although RTB differs slightly to an open auction.

Private Marketplace (PMP)

Private Marketplace (PMP) is a channel facilitated by established publishers. This niche web inventory is only sold to a handful number of buyers. PMP acts as a golden middle to acquire premium web inventory before it is sold in an open auction.

PMP offers a closer business relationship between the collaborating buyer-seller community. Buyers get better insights and control on their campaign. Sellers also initiate customized deals for buyers.

Programmatic Direct

This channel allows buyers to be guaranteed about procuring an ad-space via a seller. Established industry players opt-in for this option so that they can advertise on an app or a mobile website where they know they have an audience for.

Controversies around Programmatic Advertising

2017 saw programmatic advertising get a lot of negative publicity. The eco-system was rigged with fraud, was part of a lawsuit and experienced the YouTube ad boycott. Even then, analysts predict that programmatic advertising will thrive. Buyer trends will change. They are expected to shift to buy from a private marketplace more than open exchanges.

Also Read: Does the Programmatic Advertising Landscape Have a Trust Deficit?

Why do clients benefit from Programmatic advertising?

Web marketing makes digital media users get bombarded with commercials. Before the rise of programmatic advertising, web marketing was not in-sync with its core target audience. Clients and brands, both entities require value out of marketing campaigns. Customers were being shown ads that were nowhere related to their product preferences.

Now with ‘Programmatic’ taking roots strongly into the online/mobile marketing sphere, brands are finding it easier to build personal relationships with their clients. Marketing campaigns are getting more efficient and consumers and advertisers are not functioning in silos.

As marketers explore programmatic advertising capabilities further, they are finding ways to handle complex marketing campaigns rather easily. US markets will be spending 36.09 billion dollars in programmatic mobile advertising in 2019. Marketers should take full advantage of programmatic advertising to maximize revenues and quality of their marketing campaigns.

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