How does programmatic advertising work?
Artificial intelligence technologies have algorithms that analyze a visitor’s behavior allowing for real time campaign optimizations towards an audience more likely to convert. Programmatic companies have the ability to gather this audience data to then target more precisely, whether it’s from 1st party (their own) or from a 3rd party data provider.
Programmatic media buying includes the use of DSPs, SSPs and DMPs. DSPs, (demand side platforms) which facilitate the process of buying ad inventory on the open market, provide the ability to reach your target audience due to the integration of DMPs (data management platforms). DMPs collect and analyze a substantial amount of cookie data to then allow the marketer to make more informed decisions of whom their target audience may be.
On the publisher side of things, publishers manage their unsold ad inventory through an SSP (supply side platform). An SSP reports attention data such as how long a visitor was on a specific site or how many pages were viewed per visit. SSPs will ultimately be in charge of picking the winning bid and will serve the winning banner ad on the publisher’s site.
Introduction to programmatic
So, what exactly is programmatic marketing? Smart Insights defines Programmatic marketing as: Bidding on an advertising inventory source in real time, for the opportunity to show one specific ad, to one consumer, in one specific context
Programmatic Marketing is essentially about using real-time technology (the majority of the time) to deliver the most relevant messages to targeted consumers in order to maximise response. Through audience insights, messages are tailored to the right person, at the right moment, in the right context, usually via display ads, although increasingly through other formats such as video, too.
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