Programmatic Advertising

Programmatic advertising: what it is and how it works

Thanks to programmatic advertising it is simple to guarantee the best performances for a brand

To plan a programmatic advertising campaign means to buy advertising spaces through automated technological platforms able to create a real-time communication connection between the request, that stands for subjects that promote an advertising message, and the offer, that stands for advertising dealers that sell advertising spaces on publishers’ behalf.

In few years this kind of buying and selling model has taken on the advertising market scene despite of the traditional negotiation forms that are typical of offline advertising and that are characterized by a tied relationship between advertising investor and advertising dealers with a limited supply freedom.

Programmatic advertising requires specific competences both in tech and in marketing and needs continuous updates to catch the on-going evolutions.

With our strong expertise in digital advertising and in technologies that support marketing, we are able to provide effective programmatic advertising campaigns.

The automation of programmatic buying speeds up all technical processes and offers two big advantages: investments optimization (to reach the exact identified target) and ad frequency control (to avoid users’ overexposure to advertising messages).

Every KPI is measurable and estimable on different dimensions (ad formats, domains, timing, etw.): the absolute control on all parameters allows to optimize on-going campaigns (thanks to performance data analysis) and to satisfy all specific brand’s requests.

The purchase of advertising spaces is performed through Real Time Bidding (RTB) techniques and done for single impression. Impressions are available on Ad Exchanges, which are connected to DSP (Demand Side Platforms) and to SSP (Supply Side Platforms).

DSPs give the opportunity to set campaign parameters based on the objectives: for example it is possible to select cap pricing, positioning, inventory and target. Target can be individuated through first party data or third party data, bought from DMP (Data Management Platform).

In Programmatic the advertising spaces can be:

  • put on auction on Open Market;
  • Sold on Private Marketplace (PMP) through private deals, that are private agreements that can refer to price and inventory;
  • Managed through auction on invitation;
  • Sold in Automated Guaranteed mode.

In case the purchase of advertising spaces occurs in Open Market mode, the highest bidding advertising investor pays a price equivalent to the second highest offer (second price auction). In case the purchase occurs in Private Market Place the advertising investor pays a CPM (cost per thousand impressions) more or less fixed and takes advantage of:

  • a priority on call for purchase a determined ad impression (whose floorprice has been established in advance with publisher)
  • a part of premium inventory that is traditionally offered to advertisers by advertising dealers without the intervention of automated platforms.

Less common is another form of auction which is called “auction on invitation”. In this case publishers can decide to limit the offer to a close number of attendants.

In addiction there is another programmatic purchase form which is called Programmatic Direct or Automated Guaranteed. This form has all the characteristics of purchase in direct way, because it guarantees a fixed price and a reserved inventory, but it involves the use of automated technological platforms that allow a better control and a higher autonomy in campaign management.

To buy in programmatic means to invest in value. Value which is generated by data that drive the purchase and by flexibility given by a modulate system.

Put us to the test and plan your programmatic advertising campaign with us!

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