Programmatic adv is growing. Here is how it works

Programmatic adv is growing. Here is how it works

Digital advertising is growing : according to theGlobal Adspend Forecast 2018, this year it is expected to reach  220 million dollars worth, 12,6% more than in 2017, and achieve a market share of38.3% which may actually exceed TV static 35.5%.programmatic advertising is also likely to take advantage of such growth, recording a +23% (Global Adspend Forecast 2018). Read it in Italian.

And such increase may be even more relevant should some perplexities about the correct functioning of its mechanisms and platforms be removed. According to The Drum, taking into consideration data collected by Infectious Media, 90% of marketers would be willing to invest more into programmatic advertising should the systems measuring statistics be improved or, at least, become more reliable.  The report reveals that, to assess their campaigns success,  66%  of the interviewees still relies simply ( actually, too simply ) on clicks (Most programmatic advertisers would pay more for better measurement)

 

In my opinion, however, the problem is that not everybody knows exactly what programmatic advertising is and how it works. It is therefore worth explaining it.

To make a long story short, programmatic adv is a form of computerized advertising. No humans are involved in the negotiation and purchase of advertising space since everything is done by dedicated software specialized in automating and optimizing the process. Basically, IT platform purchase online the advertising spaces available inside websites, portals and digital channels . The whole process is based on a huge quantity of data and on the identification of the target audience. So, the sophisticated algorithms of such software can show contents live to users who are really interested in them and who are more likely to consequently turn into consumers buying the advertised goods or the services. The amazing ability of programmatic ADV is actually showing users the content they wish to watch exactly when they wish to watch it (Programmatic Advertising).

Familiarizing with some key words belonging to programmatic advertising ecosystem is also crucial.

A data-management platform (DMP) is a platform which analyzes big data concerning users’ behaviours and works out strategies including the planning, scheduling and measurement of campaigns.  
A Demand-side platform (DSP) is a platform used for the purchase of advertising spaces on the basis of marketers’ offers. A Supply-side platform (SSP)is a software which analyses the free space of the websites, the number of visits and their duration and which assigns ads.

We are therefore talking about a quicker, more efficient and cheaper way to advertise products, which allows marketers to collect a higher number of consumer insightsand to identify more accurate Key Performance Indicators(KPI).

Having said so, as I claimed in my article entitled “Programmatic adv: higher expenses, less marketers. Here is why”, the 53% of marketers are asking for a reformation of the measurement systems and believe higher transparency would be also useful to make the system rocket.

Do you rely on programmatic advertising for promoting your brand?Tweet @agostinellialdo.

To find out more about the digital world, you can read my new book: “People Are Media” 

If you liked this post, you may also like Simplifying big data may be useful but be careful not to overkill

 

Leggi questo articolo in Italiano