Most digital media these days is programmatic. With this in mind, the use of programmatic advertising platforms makes sense. Such platforms are reducing the effort put in by humans through the automation of routine tasks. Basically, programmatic platforms are very beneficial because they help users save time. With the use of algorithms, non-human traffic is removed so the marketing budget can be directed at actual customers.
Defining The Programmatic Advertising Platform
This platform is, just as the name implies, included in the programmatic ecosystem used in digital marketing. Every single part is responsible for the proprietary stage of the process. Simply put, different parts cooperate for analytical, operational, and marketing purposes. The platforms are set up so that they work simultaneously, based on programmatic advertising point, in order to reach users from a target audience, at the appropriate time.
In order to properly understand programmatic advertising platforms and use them for social media video marketing or other marketing types, you need to understand the different types that exist.
Supply Side Platforms (SSP)
The publisher submits the web page to the SSP as an advertisement source. Then, everything is agreed on the Ad Exchange. The page owner uses a pixel code that is implemented inside the web page with the purpose of observing the behavior of the visitor. Then, the information received is sent to the data provider with the purpose of performing extra analytical actions.
Publishers inside SSPs can:
- Filter out ads
- Set low rates for ad spaces
SSP for publishers sell ad space at a higher possible rate. Data is gathered from a network and profit is increased by automatically selling ad inventory.
Demand Side Platforms (DSP)
As publishers communicate through the SSP platforms, the advertisers make a bid to DSP through a specific programmatic advertising platform. The DSP stores the profile of the users and data coming from other providers. Based on the information and the advertisers’ declared bids, if a user visits the page, the DSP makes a choice. This includes some important points:
- The ad content
- The bid that is needed for the user with the highest bid winning
- The cost for the advertiser
Publishers add the pixel so that every single time the user visits a page, the providers gather data about them. The purpose is to build audience segments. The segments are then divided into specific demographic data, buying intentions, current interests, and then sent to the DSP. At the same time, the DSP prepares advertisers that wait for ads to be shown to users. An advertiser makes a bid on a per user basis.
DSP together with ad exchanges launch the embedded decision machine with user profiles and ads so that the best possible pair is chosen. After the decision is made, the SSP learns about it. Then, it sends the code to the publisher, with the code being posted inside a web page. The result is always having the most appropriate of the available ads shown to the users that are the most adequate.
Data Management Platforms (DMP)
This is a programmatic advertising platform that is independent. Data is analyzed, activated, managed, and collected. Data is stored from the first, second, and third parties. Then, DMPs offer a source for 360 degrees user profiles that marketers can use.
Besides basic DMP functions, we have OnAudience DMP, which offers an extra source filled with deep insights into characteristics for the customers. The Audience Reports that are available can be accessed instantly and gives you more data that can be utilized.
The ad exchange is practically a platform where SSP and DSP meet for selling ads and then buying them. Various systems offer DMP, SSP, and DSP functions in a single ad exchange. These are practically hybrid solutions that work as both advertising platforms and publisher platforms. Advanced configurations cannot be set though.
In modern digital marketing, the efficiency of manual solutions is very low so the use of automatic technology is mandatory. Programmatic advertising platforms make it easy for marketers to create advanced campaign configurations. At the same time, results are much easier to predict so marketers can get the best possible results for clients. However, this does not mean the solution is perfect. The advertising platforms need to be carefully chosen or the results will not be as good as they could be.