Skip to main content

Programmatic Continues to Soar!

Written by SPI Collective on .

Traditional media buying meant a lot of hands-on work: research, proposals, negotiating, manual insertion orders, etc. When a major part of ad spending shifted to digital, this process became even more arduous. Enter the efficiency and precision of programmatic media buying. In short, programmatic buying means using automated technology—specialized software, data insights, algorithms and online auctions—to instantaneously buy and serve digital ads (think banner ads or ads on Facebook or Twitter) to optimal targets.

Understanding programmatic media buying starts with knowing the terminology. Here are some key terms defined, according to Adjust:

  • Real-Time Bidding (RTB): Also known as Open Auction, RTB is where inventory prices are decided through a real-time auction.
  • Demand-Side Platform (DSP): Software that enables agencies and advertisers to buy ad inventory cross-platform.
  • Sell-Side Platform (SSP): Software that allows publishers to sell display, mobile and video ad impressions to potential buyers automatically, in real time.

The faster-than-a-speeding-microchip programmatic process works like this:

  1. A media buyer inputs a bid and targeting parameters into a DSP.
  2. When an internet user, let’s call them Sam, lands on a web page, they trigger the programmatic process.
  3. First, the web page publisher lists the ad placement in front of Sam as “for sale” on their SSP.
  4. The SSP analyzes Sam’s cookies to determine location, demographic characteristics, habits, interests and more.
  5. The SSP provides this info to the DSP and the DSP reviews it to see if Sam fits the targeting parameters and bid set by the media buyer.
  6. If Sam is a good fit, the DSP bids for the ad placement.
  7. Once the SSP receives bids from all interested DSPs, it determines a winner.
  8. The SSP displays the winner’s ad on the web page, making an impression on Sam.

This all happens in the blink of an eye, while the web page is loading! Programmatic isn’t just the future of digital advertising, it’s the now. By 2021, eMarketer estimates almost 88%—or $81.00 billion—of all U.S. digital display ad dollars will transact programmatically.

Utilizing The Trade Desk—the world’s most advanced online advertising marketplace—SPI introduced programmatic buying to southeastern Virginia. As part of our refined process, SPI’s media team continually monitors plan performance and adjusts as needed to maximize the return on our client’s digital ad investments.

Interested in learning more? We’d be happy to discuss the benefits of programmatic buying with you at any time!