Jumping into Programmatic · RTBs (real-time bidding) RTB is the buying and selling of...
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Jumping into Programmatic
Transcript of Jumping into Programmatic · RTBs (real-time bidding) RTB is the buying and selling of...
Jumping into Programmatic
“We have technology, that for the first time in human history, allows people to maintain rich connections with much
larger numbers of people.” – Pierre Omidyar, founder of eBay.
Simply put, programmatic advertising is
a smart way to connect to your customers –
displaying your online advertising in the right
environment and reaching your target market
on an individual, personalised level.
This is done via automated buying in real-time, using targeted data to speak to specific audiences. The result? It’s the most effective way to get the right message to the right people at the right time.
Predicted to be the fastest growing segment of digital advertising over the next few years, you can’t afford to ignore it. The returns are impressive, but the concept can be confusing.
ADVERTISERS
CONSUMERS
PUBLISHERS
What is Programmatic Advertising?
It’s true. The benefits and track record are significant. A few include:
Highly accurate and granular targeting
Result based ROI
Increased scale/reach
Real-time transparent reporting, monitoring and optimisation
Increased pricing efficiency – Advertising value is set by market forces
Moment Marketing - Precise targeting and tailored messages to reach the right consumer at the right time
More accurate media plan delivery
I’ve heard it can do amazing things for my brand
In order to use the available tools, it is important to understand the process. Like other auctions, advertisers and brands bid for advertising space or impressions that matches their campaign targeting criteria. Prices move depending on demand and supply; and you’ll pay what the inventory is worth.
Driving the process are advanced buying algorithms powered by extensive data. This data is based on a myriad of targeting options from location, behavioural data, demographics, income-levels, third-party data, browsers, devices etc – which is key to reaching your market.
Ultimately it’s about efficiency, scale and targeting.
Programmatic buying can broadly be divided into 3 categories.
Open Exchange Using various DSPs (Demand Side Platforms) to bid on available inventory on the open exchange.
Private Marketplace (PMP) Bidding for impressions in a private marketplace.
Programmatic Guaranteed Reserving a guaranteed inventory at a pre-defined cost.
So,how does it work?
Today’s world of media buying and selling is fast-paced. Advertisers bid for impressions that meet their targeting goals and match their budget. Publishers benefit too, as they sell their advertising space at a competitive rate.
This is all thanks to programmatic, which drives branding objectives using real-time data. Allowing for reach at scale – bidding on billions of impressions across multiple devices both locally and internationally.
Key benefits of programmatic buying include the ability to keep optimising campaigns and target prospects likely to convert.
In simple terms...
Quality data is essential to targeting the right customers with the right message.
Good data starts with constant measurement allowing for optimisation of your advertising reach. Your programmatic partner must have access to quality information and know how to interpret this for the best advantage. Real-time analysis using programmatic algorithms can double the effectiveness of campaigns.
In a way programmatic is like the proverbial iceberg. What we can see is really only the tip of the programmatic mountain.
A human mind can only go through and comprehend a fraction of what is being measured and optimised in an instant by automated algorithms. It is this sheer volume of data and in-depth reporting that gives programmatic the edge in online advertising.
The importance of data
Resources run deep
DSPs (demand-side platforms)
DSPs enable the buyer of digital advertising inventory to trade on multiple ad exchanges via a single buying platform. The system allows marketers to buy ad inventory on the open marketplace while layering various targeting options.
DMPs (data management platforms)
These are centralised systems that gather first-party data, integrate with third-party data, and apply the accumulated data to advertising strategy. They allow for pinpoint targeting. Advertisers can profile their audience and target directly, with minimal wastage.
SSPs (supply side platforms)
Publishers manage their ad inventory through SSPs, which are designed to help maximise the fill rate for the publishers. Publishers can now reach a global audience.
RTBs (real-time bidding)
RTB is the buying and selling of advertisements in real-time through auctions held in DSPs, SSPs, or ad exchanges.
PMPs (private marketplaces)
PMPs are an invitation-only RTB auction where publishers invite a select number of marketers to bid on their inventory.
Programmatic Direct
Programmatic direct is a way to automate direct ad buys for set campaigns.
CPM (cost per thousand)
In this ad model advertisers are charged every time their ad is displayed to a user, regardless of the click. Advertisers pay on every 1,000 impressions.
CPC (cost per click)
This ad model charges advertisers every time their ad is clicked.
CPA (cost per acquisition)
This is a performance-based model that requires advertiser to pay when an action is completed as a result of the ad e.g. user completes a sale or makes an enquiry.
CTR (click-through rate)
This term expresses the rate at which users click on an ad. Clicks divided by impressions is expressed as a percentage.
Viewability
MRC definition is 50% of your display ad is in view for one second or more or if 50% of your video ad is on view for two seconds or more. Acquire Online aims to deliver 100% viewable impressions.
Understanding the terminology
And the metrics...
• Google Marketing Platform tells us there are 250 billion biddable ad impressions in New Zealand every month!
• 94% of Kiwis check the internet at least once a day.
• Laptops and computers are the most frequently used devices for internet searches, followed by smartphones, tablets or iPads and SmartTVs.
• In 2017 the entertainment category saw the largest increase in the volume of searches (increase 7%).
• Broadband connections consumed 276 million gigabytes of data in the month of June 2017. That’s enough data for more than 10,000 years of screen time, a 93% increase from the previous year.
• By 2019, nearly two-thirds of all digital display ads are projected to be programmatic, reaching $84.9 billion in revenue
Where does New Zealand fit in all this?
This kind of scale and reach is only possible through programmatic advertising!
Sources: Internet NZ’s 2017 report, Stats NZ, Publicis Groupe Zenith.
As one of the fastest growing segments in media, increased reach, reporting and measurement are just some of many far-reaching benefits. Others include:
As more programmatic platforms constantly become available, marketers get greater reach and even better returns. Intelligent connections are made, insights are generated and performance is optimised. All in real time and way more efficiently than traditional advertising.
• Highly targeted ad placement
• Automated ad buying, making a streamline process for marketers.
• Comprehensive reporting on a campaign’s performance including audience insights, viewability, interactions, path to purchase and sales conversion.
• Creates value, efficiency and performance.
• New lead generation.
• Faster connections with your audiences
• Measurable results to assist future investment.
What can Programmatic do for me?
Dipping your toe in programmatic waters need not be daunting. You can start by moving just a percentage of your campaign across. For instance part of your TV budget can shift over to video. This will allow you to see actionable insights working for you.
Programmatic advertising can get highly granular in its targeting capabilities. So it’s a good idea to have a clear definition of who your client is and what you want from your campaign.
Some steps include:
• Review potential programmatic partners to check they supply what you need in terms of brand safety, targeting options and the tools.
• Do they offer a range of inventory, including video, audio, display, native, search, social?
• Make sure they provide transparent reporting on the right metrics like viewability, reach and conversions.
• Set your campaign objectives in terms of viewability, branding, conversions and any other priorities.
Once you are happy with your programmatic partner and have set your campaign objectives, you can move forward together.
Where do I start?
Based in Auckland and operating since 2012, Acquire Online is New Zealand’s largest independent trading desk.
We will make it easy for you to start reaping the performance and ROI rewards that only programmatic can deliver. For the team at Acquire Online, the focus is on results first.
Chris Schultz +64 21 994 335
Anthony Ord +64 27 649 9198
Nick Paschalis +64 21 798 890
Speak to the team
