PROGRAMMATIC ADVERTISING FOR DUMMIES

WHAT IS PROGRAMMATIC BUYING?

WHAT IS PROGRAMMATIC BUYING?

Simply put, programmatic ad buying is the buying

and selling of ads through machines. Programmatic

ad buying is similar to online stock trading in that an

advertiser uses software to buy ad impressions. All of

the magic happens through machines.

NOT THESETYPES OFMACHINES

WHY DOES PROGRAMMATIC ADVERTISING MATTER?

WHY DOESPROGRAMMATIC ADVERTISING MATTER?

Then Now

Digital advertising used to be bought and sold

manually. Ad networks bought ad impressions

ahead of time from a lot of different sites and apps

and repackaged them to be sold to advertisers

with no transparency. This process involved

salespeople, RFPs, and a whole bunch of human

error. The process was inefficient and unreliable.

With programmatic advertising, digital ad buying

is faster, more efficient, and less expensive. Also,

advertisers now have more granularity into their

advertising campaigns by paying for impressions

individually and using a dashboard to strategically

manage and target their ad campaigns.

HOW PROGRAMMATIC ADVERTISING WORKS

Programmatic ad buying typically happens

through real-time bidding (RTB).

Real-time bidding is a live auction that

happens through an advertising exchange.

Just like a real auction, demand-side

platforms bid on ad impressions on

advertisers’ behalf. Whoever has the highest

bid price, gets their ad shown to an end user.

EXAMPLE USING

WORDS WITH FRIENDS

The publisher, in this case Words

With Friends, has already given its ad

inventory to ad exchanges, which are

responsible for having an auction.

BELOVED

ADEXCHANGE

During the auction, potential bidders (the advertisers)

receive information in the form of a bid request about

the user who has just opened Words With Friends. The

information may be something like device type, IP address,

operating system, and information about the app itself.

Device: Samsung Galaxy S5

IP Address: 99.999.999.70

Operating System: Android

Advertisers look at the bid request from Words With

Friends and then send their bid price back.

After receiving all of the bids, the ad exchange determines

who the highest bidder is for the impression on Words With

Friends, and the winner’s ad is served on Words With Friends.

Good-Looking Shoes

Publisher

Advertisers

Consumer

Remember, all of this happens within a tenth of a second!

IS PROGRAMMATIC THEFUTURE?

IS PROGRAMMATIC THE FUTURE?

YESThe programmatic buying and selling of advertising

is rising rapdily. However, mostly online and mobile

ads are bought and sold programmaticly.

U.S. REAL-TIME BIDDING (RTB) DIGITAL DISPLAY AD SPENDING, 2010 - 2016

Source: eMarketer, Nov. 2012

Interested in mobile advertising for your business and want to see

programmatic ad buying in action? Check us out at decisive.is.