How does programmatic display advertising work?
Summary of How does programmatic display advertising work :
- Definition of programmatic display
- How does it work in practice?
- How can programmatic display be effective?
- How to buy programmatic display?
What is programmatic display?
Programmatic display is an automated online media buying system. It allows you to plan the purchase of advertising space according to criteria such as geolocation, socio-demographic data or even interests. The advantage of programmatic display is that campaigns are easy to set up. Indeed, you just have to set up your targeting, your budget and your visuals in a platform called DSP (Demand Side Platform) to have access in real time to many digital advertising spaces on many media. The visuals of your campaign are then displayed simultaneously on different platforms.
A programmatic display campaign is easy to set up because the purchase of advertising space is done in a completely automatic way. In addition, with programmatic display, targeting is not only done by collecting personal and navigation data of the user, but also by using keywords.
It is a flexible and efficient advertising method. Moreover, in 2021, it will represent 64% of display advertising expenses (according to the study of Oliver Wyman and UDECAM).
How does it work in practice?
As we said earlier in this article, programmatic display is an automated media buying model, which allows to target in real time and in a precise way, Internet users in order to deliver them the right ad at the right time.
More precisely, programmatic display allows you to reach your target by different means:
Through the purchase of data: in this case, it is possible to use advertising agencies that collect data and have a large inventory of prospects. Thus, it is possible to have access to the audience segments that you want to target.
By the context: here, the targeting is done on the basis of the search history of the Internet users, collected by an advertising network. Thus, the ad will be displayed according to previous searches, in connection with the advertiser's sector of activity.
In a semantic way: the semantic targeting is done by the keywords present in the websites. It will therefore be possible to broadcast the ad in all the websites (that the chosen advertising network offers), presenting one or several chosen keywords. You can also add broadcasting frames, that is to say, target the sites by themes, for example the finance sites.
Here is a diagram that summarizes how programmatic display works:
How effective is programmatic display?
Programmatic display is particularly effective in delivering the right message to the right person at the right time. It is its targeting ability that makes it so effective in its objectives.
Its main advantage is its flexibility. Indeed, this device allows you to adopt an "agile" position: it adapts according to the results of the campaign. Unlike traditional media, you can adapt your advertising strategy in real time to perform at the maximum on the set objectives.
In this way, programmatic display also allows you to have total control over your expenses since the campaign can be modified and adjusted at any time.
The targeting of the audience is an essential criterion for successful broadcasting, hence its effectiveness. The programmatic display has become more and more popular over the last few years, since in 2021, it will represent 64% of the display revenues (BDM). That is an increase of 38%.
How to finance programmatic display?
Programmatic buying is generally done through RTB (Real Time Bidding), either in real time or on a CPM basis. These processes allow you to adjust and control your budget according to the relevance of the targeted profile.
To buy a display campaign with programmatic, you have to go through a dedicated platform called DSP (Demand Side Platform), among which we can mention Ad-exchange or Teads.
The prices of a programmatic campaign can vary according to the size of the targeting and the objectives. Nevertheless, we are not going to leave you without information; the average CPM in France on programmatic display campaigns has been estimated at 0,96€ (source: IAB France / Adomik). This is a general average that varies greatly depending on the sector, the targeting or the formats used.