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Questions You May Have About Programmatic Advertising

It’s no secret that programmatic is the new buzzword in digital marketing. Programmatic technology has made it easy to buy and distribute ad space with a much higher return on investment than typical pay-per-click advertising.

Today, we at 7Social want to answer some of the most common questions we receive about this fairly new and innovative technology.

What is Programmatic Advertising

Automated internet ad purchasing and selling is known as "programmatic advertising. The automated system enables media buyers and publishers to reach an auction-based agreement on the price per impression.

Using demand-side platforms (DSPs), buyers submit their highest offer in real-time, compete with other buyers, and wait to see if they win. Publishers utilize supply-side platforms to manage placements and solicit auctions. This method is known as real-time bidding (RTB), and it entails that all bidders enter their offers simultaneously, with no advertiser being given precedence, as is the case with waterfalling or direct.

Programmatic systems are user-friendly for all parties. Publishers define their website's audience and establish price ceilings for their merchandise. Advertisers identify their target audience, specify the creative parameters they desire, and submit their CPM bids. Once everyone has chosen their settings, the programmed technology automatically matches the appropriate supply with the appropriate demand.

What Exactly is a Demand-Side Platform

A demand-side platform is one of the tools used in programmatic advertising. Automated bidding for displaying advertising on websites or mobile applications is made possible by demand-side platforms (DSPs), the software utilized by marketers. This strategy prevents marketers from spending time and energy on things that can be performed by a machine.

A DSP is advantageous because it enables marketers to monitor the progress of their ads in real-time. Advertisers may spend more quickly in a DSP if a campaign is functioning well, while unsuccessful adverts can be eliminated. Using a DSP is also helpful for its capacity to target the present audience for an advertisement. This shows that your cat food advertising, for example, targets cat owners, who are more likely to buy your products than non-pet owners. Targeting may be determined by a variety of variables, including age, gender, geography, and profession. Possibilities are infinite.

What is a Supply-Side Platform

Supply Side Platforms are pieces of software that automate the selling of advertisement space. Rather than approving or rejecting advertisers on a case-by-case basis using human interactions, this software automates the process so that it can happen instantaneously.

Unlike DMPs which are used by those creating and selling ads, SSPs are used by publishers to connect with DSPs to ensure that the ad space on their website is being sold to the sellers of relevant products and services. Because they offer individual ad impressions, SSPs provide publishers with more control over their inventory. Publishers can monitor who is paying for their inventory impression by impression and alter their ad requests accordingly.

Publishers can use SSPs to filter digital advertising based on the advertiser, ad type, target audience, and other parameters, as well as establish varying fees for ad spaces. SSPs often work hand in hand with DMPs as part of the programmatic marketing process. This cooperation ensures that a potential customer will not be overwhelmed by showing the same ad over and over again when visiting a site.

Are Google Ads Programmatic Advertising

Technically speaking, Google Ads is a programmatic platform. However, it just provides access to Google's advertising inventory. White-label DSPs may link advertisers to any SSP of the user's choosing, allowing them to purchase traffic from anywhere.

Google Ads uses programmatic advertising and RTB and is similar in nature to a self-serve DSP. In a self-serve DSP, you can create and track your ads, but when it comes to in-depth statistics, you are left in the dark.

What is Header Bidding

So, in header bidding, publishers offer inventory to numerous ad exchanges concurrently prior to calling their ad servers (mostly DoubleClick for Publishers). The theory is that by allowing various demand sources to bid on the same inventory at the same time, publishers would raise their yield and earn more money.