In this video, learn more about how digital media buying is automated through programmatic, and receive a concise industry definition.
- [Narrator] Now let's define Programmatic Advertising. It is the use of technology and data to improve the process of buying and selling ads. It involves the entire process of automating the display, and the triggering of your digital advertising. On the Buy Side of Programmatic, we have advertisers, they have a budget that they want to spend. They hope to rely on better data and technology to enable more accurate targeting, and better personalization to ultimately experience better conversions.
And of course, to reduce wasted ad dollars. On the Sell Side, we've got publishers, supported by data providers, and they aim to increase the value of the inventory that they own, and they want to increase the competition among advertisers. Then of course, we've got solution providers, and given that the industry is at a very early phase with Programmatic, many providers hope to refine the industry by offering features that are so unique that the market will perceive that as a benchmark solution for Programmatic.
Now this can be confusing to decision makers who need to decide where to spend their ad dollars, but, you need to keep an open mind at all times, and you should be ready to use a variety of different providers to leverage unique features that will hopefully address different advertising goals. Now let's take a closer look at the ad industry. We've got 10 very significant media owners in the world, where this claim to that Google and Facebook together takes more than 20 percent of the entire global aspect.
Now if we zoom in on digital ads, these two giants receive more than 59 percent of the digital ad budgets, yet thousands of smaller providers also exist. Many also partner with the big media giants through known ad networks. You should know that we've got Open and Closed System Programmatic. Essentially, Open System Programmatic refers to a situation where advertisers can have direct access to a wider range of inventory that's offered by several media owners.
Closed System Programmatic is something that most PPC practitioners already know quite well. It is where you would use a platform such as Google AdWords, Facebook ads, or Bing ads, to place ads on media that is offered by one media owner and their partners. Many advertisers hope that by breaking away from spending all their ad dollars with a duopoly, they can reach into all available inventory that matches their targeting criteria, and thereby, reducing their cost-per-click and their dependency on larger providers.
But this may not be the case in the near future. As Jeff Green, the CEO of the Trading Desk, said, "There'll be fewer ads, they'll be more relevant, "they'll cost more, and they'll be worth it." I would agree with this, since Programmatic helps publishers to sell inventory for higher prices. We have seen exponential increases in cost-per-click values with the rise of Programmatic. As an advertiser, you should develop the ability to learn quickly which inventory is more valuable under which set of circumstances, through a combination of data points, and then set up marketing automation to exploit these benefits.
Here marketing expert Adriaan Brits shows members the fundamentals of programmatic advertising. Learn how to examine audience insights and pick a real-time advertising platform that can help you understand when and where to place ads. Discover how to target advertising for video, mobile, and apps, and work with LinkedIn, Facebook, and the Google Display Network. Plus, find out how to create campaigns, use advanced targeting to reach B2B decision makers, and act on valuable audience insights.
- How programmatic advertising is used
- Real-time advertising strategies
- Programmatic advertising on mobile
- Choosing the right media type
- Choosing auction or direct buying
- Choosing a targeting method
- B2B marketing and programmatic ads
- Using analytics and artificial intelligence
- Auditing programmatic campaigns